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You may request a copy of the 2026 Annual","page_number":1,"box":{"x":69,"y":430,"width":781,"height":12}},{"id":"5acd58a9-694b-43ac-a8ac-d6766b8b9a41","block_type":"box","text":"Financial Statements at no charge by calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time","page_number":1,"box":{"x":70,"y":445,"width":820,"height":12}},{"id":"1edd7d18-f9dc-4fcf-9f4f-2b4f7a042fd7","block_type":"box","text":"on any business day.","page_number":1,"box":{"x":69,"y":460,"width":157,"height":12}},{"id":"4feee204-52d8-4163-ad3c-fc619ac5efa2","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act”), or","page_number":1,"box":{"x":103,"y":483,"width":767,"height":12}},{"id":"d76cbbcf-b316-44c5-b901-c6abc3dd4484","block_type":"box","text":"other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or","page_number":1,"box":{"x":69,"y":498,"width":796,"height":12}},{"id":"16c5deea-80d3-4565-90bf-127a95706b74","block_type":"box","text":"modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including","page_number":1,"box":{"x":70,"y":513,"width":837,"height":12}},{"id":"0375ae20-8218-46e7-b568-3fed2ec2aa6d","block_type":"box","text":"court interpretations, and exemptive, no-action or other relief or permission from the Commission,","page_number":1,"box":{"x":69,"y":528,"width":749,"height":12}},{"id":"56be1c69-008f-4dd9-bb4a-73b500747a17","block_type":"box","text":"Commission staff or other authority.","page_number":1,"box":{"x":70,"y":543,"width":274,"height":12}},{"id":"996089bd-3c86-44b7-8208-3f50456d607f","block_type":"box","text":"Class","page_number":1,"box":{"x":69,"y":572,"width":31,"height":7}},{"id":"a25bde70-9409-4892-b14f-8712eb81f704","block_type":"box","text":"Ticker Symbol","page_number":1,"box":{"x":827,"y":572,"width":82,"height":9}},{"id":"90e810ce-e9ff-44a5-8ab5-a969b1605d63","block_type":"box","text":"Investor A Shares","page_number":1,"box":{"x":70,"y":590,"width":124,"height":9}},{"id":"e761b1c9-7795-4b40-ad0f-f12694b6b148","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":9,"box":{"x":134,"y":113,"width":745,"height":11}},{"id":"aa7bb8f0-fb64-42f7-9326-a5839b7902d5","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend por tfolio securities.","page_number":9,"box":{"x":102,"y":128,"width":729,"height":11}},{"id":"6533faac-d6a2-4774-9c50-89fb611ba6eb","block_type":"box","text":"10. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":9,"box":{"x":135,"y":151,"width":735,"height":11}},{"id":"bc2af0a9-9349-4cb6-adbc-63ebc1482ff5","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in par t in such activities, may engage in","page_number":9,"box":{"x":102,"y":166,"width":744,"height":11}},{"id":"bec302c3-9435-404c-a533-01c081fc3f37","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":9,"box":{"x":101,"y":181,"width":565,"height":11}},{"id":"3cd79106-ebba-448c-888a-d1c9b6b8fa7f","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":9,"box":{"x":102,"y":204,"width":494,"height":11}},{"id":"2c9aaa8a-2af6-4a80-b0a0-5269d699d514","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":9,"box":{"x":101,"y":226,"width":799,"height":11}},{"id":"9be3cf0b-8d8d-4e5a-be6c-18bb9dfe3601","block_type":"box","text":"subject to change without shareholder approval.","page_number":9,"box":{"x":69,"y":241,"width":341,"height":11}},{"id":"5245258c-dafb-4ca4-b260-f283a83cc4d8","block_type":"box","text":"For purposes of investment restriction no. 1 above, with respect to the Fund’s industry classifications, the Fund","page_number":9,"box":{"x":102,"y":264,"width":796,"height":11}},{"id":"f639f580-fcd9-4638-b9b0-c7016be12c22","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":9,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"94a546f9-0130-48dd-9d8c-f173b542a632","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":9,"box":{"x":70,"y":294,"width":817,"height":11}},{"id":"41c2e9d5-e7d3-49b3-a52c-90339e37baf6","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":9,"box":{"x":69,"y":309,"width":597,"height":11}},{"id":"2f68a80f-bdca-45e3-b519-2bfaaad1a62f","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":9,"box":{"x":101,"y":332,"width":795,"height":11}},{"id":"421ab58e-f475-480e-8154-19dd7f2703fe","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":9,"box":{"x":70,"y":347,"width":832,"height":11}},{"id":"9b48b359-f1a2-4cd8-999f-f0901ff512d0","block_type":"box","text":"cer tain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":9,"box":{"x":69,"y":362,"width":790,"height":11}},{"id":"3e388795-3978-4225-b4cb-971eb34be847","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":9,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"e31c7204-4717-4e14-a244-76904c2fb312","block_type":"box","text":"Cer tain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":9,"box":{"x":69,"y":392,"width":805,"height":12}},{"id":"b5fcd350-2a1c-477f-afa5-d52b14e8f495","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f-4 under the Investment Company Act, when the Fund/Por tfolio","page_number":9,"box":{"x":69,"y":407,"width":826,"height":12}},{"id":"46dfcea8-6316-4c1a-ae18-e1c0aaa58322","block_type":"box","text":"engaged in a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":9,"box":{"x":69,"y":423,"width":832,"height":11}},{"id":"3491ddfc-3820-491c-ac59-446cbb183ba1","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":9,"box":{"x":70,"y":438,"width":830,"height":11}},{"id":"bca23394-6cb2-4514-90de-3001709b1e03","block_type":"box","text":"an amount at least equal to the Fund’s exposure, on a mark-to-market basis, to the transaction, instead of meeting","page_number":9,"box":{"x":69,"y":453,"width":823,"height":11}},{"id":"2b2546ea-06d1-4c78-9bbc-208a9876dba8","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":9,"box":{"x":68,"y":468,"width":840,"height":11}},{"id":"b3aaa0de-dc25-4bb6-be34-dd14c9d65267","block_type":"box","text":"staff guidance and interpretations were rescinded in connection with the adoption of Rule 18f-4, and the Fund now","page_number":9,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"a9537c38-1eae-4a32-9fcd-75a23a628455","block_type":"box","text":"complies with Rule 18f-4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":9,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"48454c11-4b50-4397-9132-69f4f3d65367","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":9,"box":{"x":69,"y":513,"width":836,"height":12}},{"id":"a5de3db7-9245-4256-8634-a427c8a6f45d","block_type":"box","text":"securities so long as the Fund complies with Rule 18f-4 with respect to such derivatives transactions.","page_number":9,"box":{"x":69,"y":528,"width":724,"height":12}},{"id":"d75bab20-947b-4110-bc73-fa3591943b68","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":9,"box":{"x":101,"y":551,"width":793,"height":11}},{"id":"c5e7f1cb-c287-4c95-93c2-074d7dc6435d","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restrictions no. 5, 8 and 10","page_number":9,"box":{"x":68,"y":566,"width":796,"height":11}},{"id":"83bb31ff-866e-4437-a98a-e6774ea4e440","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Fund’s compliance with applicable law.","page_number":9,"box":{"x":69,"y":581,"width":752,"height":11}},{"id":"11f8cb07-3327-4722-a348-dfd0bd5c4c13","block_type":"box","text":"Accordingly, fundamental investment restriction no. 5, which does not restrict transactions in options on securities","page_number":9,"box":{"x":68,"y":596,"width":817,"height":12}},{"id":"fa844b3f-e83d-499d-9af3-24f086a03ef6","block_type":"box","text":"and securities indices, and fundamental restrictions no. 8 and 10 are being interpreted to permit the Fund to engage","page_number":9,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"1f7aa11e-671f-44ca-9830-0c5264ffaaf6","block_type":"box","text":"in transactions in swaps and options on swaps, as applicable, related to financial instruments, such as securities,","page_number":9,"box":{"x":70,"y":627,"width":815,"height":11}},{"id":"33b9fb04-a194-492c-a66a-c9664e671211","block_type":"box","text":"securities indices and currencies, but not to engage in transactions in swaps or options on swaps related to physical","page_number":9,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"f72bf2ed-0590-404b-8046-02561ea175fe","block_type":"box","text":"commodities, such as oil or metals.","page_number":9,"box":{"x":69,"y":657,"width":254,"height":10}},{"id":"a2ebbd77-7396-44f1-88fc-861d69d01e8c","block_type":"box","text":"Under its non-fundamental investment restriction, which may be changed by the Board without shareholder","page_number":9,"box":{"x":102,"y":680,"width":760,"height":11}},{"id":"e4e38550-4fd2-40bd-b481-379bd51613c5","block_type":"box","text":"approval, the Fund may not:","page_number":9,"box":{"x":69,"y":695,"width":197,"height":11}},{"id":"a22ab17c-4022-4307-ade4-de83948d19e3","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":9,"box":{"x":102,"y":717,"width":742,"height":12}},{"id":"57e479b3-d32e-48e9-9171-d390169c62ad","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":9,"box":{"x":69,"y":732,"width":759,"height":12}},{"id":"0829f646-72c7-4520-bd74-7b8c21269c4f","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":9,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"bc21033e-21de-4c9b-81af-c141abf7c33e","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":9,"box":{"x":70,"y":763,"width":808,"height":11}},{"id":"dae803b0-4347-4556-a1fb-30e3f3325eb2","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":9,"box":{"x":69,"y":778,"width":763,"height":11}},{"id":"254769da-4b7e-4a4a-9521-ec60fe4c5ca6","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":9,"box":{"x":102,"y":801,"width":771,"height":11}},{"id":"c1cae141-4d86-4802-93dd-6fad9317a284","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental and non-fundamental investment restrictions apply only at","page_number":9,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"13c86398-cd97-42b4-9ed3-0261cbe149b1","block_type":"box","text":"the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested in cer tain","page_number":9,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"15b8d5e0-66e1-4fbb-b4c9-6e5038c57a0d","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":9,"box":{"x":69,"y":846,"width":835,"height":11}},{"id":"bc51b16e-836a-4b2c-a32f-ef220a4421c4","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":9,"box":{"x":69,"y":861,"width":833,"height":11}},{"id":"553ec564-2fab-4630-958d-ce95675feb13","block_type":"box","text":"investment without undue market or tax consequences.","page_number":9,"box":{"x":70,"y":876,"width":393,"height":11}},{"id":"d0e8b56d-8dca-4450-8e7a-4f68f2be0425","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"4f5ba946-6486-4959-afd3-60f970a40393","block_type":"box","text":"NM1026U-5978647-9/232","page_number":9,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"bfe84c73-c6d4-44ce-ad97-81033a5fccff","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":10,"box":{"x":101,"y":45,"width":777,"height":11}},{"id":"9a73539a-2033-4067-a4a2-641875f3f06a","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":10,"box":{"x":70,"y":60,"width":751,"height":11}},{"id":"f3589175-9c17-4277-90c7-6bf6319d106d","block_type":"box","text":"government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":10,"box":{"x":68,"y":75,"width":812,"height":11}},{"id":"a3cc803f-4143-4c6e-a55d-0d58797565fb","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":10,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"f48c26aa-75da-4b6d-954a-d447ec3a4823","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":10,"box":{"x":69,"y":105,"width":781,"height":11}},{"id":"27181e79-60d5-447a-83d7-e29ad74b5a01","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":10,"box":{"x":69,"y":120,"width":759,"height":12}},{"id":"2d5a9e90-8d5e-401d-a5f4-aa5d5fde7d46","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":10,"box":{"x":70,"y":135,"width":774,"height":12}},{"id":"96d343e2-43ad-4df0-8965-dbf73ea63db3","block_type":"box","text":"shareholder approval.","page_number":10,"box":{"x":69,"y":151,"width":153,"height":10}},{"id":"cc603d66-a5ad-4c1c-ae9a-077069b78969","block_type":"box","text":"III. Information on Trustees and Officers","page_number":10,"box":{"x":69,"y":181,"width":290,"height":9}},{"id":"c28b0e49-fc8c-4777-ba21-006de001647c","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":10,"box":{"x":101,"y":203,"width":788,"height":11}},{"id":"c8065d30-e51c-4a90-a778-89b5d849b381","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":10,"box":{"x":68,"y":218,"width":779,"height":12}},{"id":"11dad06a-5d1d-4651-975c-5fb73a10ba78","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":10,"box":{"x":69,"y":234,"width":837,"height":11}},{"id":"82c6b959-3539-429f-abfa-4e2ef5e8ceb0","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":10,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"2ad58003-1f65-4bfd-9397-86445a5e2de4","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":69,"y":264,"width":822,"height":11}},{"id":"40271365-004d-4a80-bffc-13f7a936e65c","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":10,"box":{"x":68,"y":279,"width":837,"height":11}},{"id":"1745da0d-1e6d-4d22-bb28-31a7056c5654","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":70,"y":294,"width":335,"height":11}},{"id":"21045b97-507d-4fc2-99aa-4468e976afd9","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":10,"box":{"x":101,"y":317,"width":769,"height":11}},{"id":"7a71809c-15bb-4112-b2a0-bf271764eaa8","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":10,"box":{"x":70,"y":332,"width":827,"height":11}},{"id":"fc457d0e-6567-4f97-9fdc-1ddec411bd31","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":10,"box":{"x":70,"y":347,"width":821,"height":11}},{"id":"754209a3-f102-462c-993b-d9bc539e6ac2","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":10,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"8d7a72ec-df98-4072-8d36-0c26334d3f48","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":10,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"908d08d8-c078-4110-a8ae-c0105b0ea931","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":10,"box":{"x":68,"y":392,"width":789,"height":12}},{"id":"a55574e3-d60e-46f5-9fb1-8aca47df84d3","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":10,"box":{"x":69,"y":407,"width":810,"height":12}},{"id":"ca4c09a1-3e06-46ec-924d-06a9e089087e","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":10,"box":{"x":69,"y":423,"width":809,"height":11}},{"id":"bef4af4b-c9f9-4b1b-bae3-0908f63c15f2","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":10,"box":{"x":70,"y":438,"width":794,"height":11}},{"id":"a304bbe4-b4b1-4d32-8eaf-aa5e33fc8c25","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":10,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"b6bf3343-7d9e-4d1c-92f8-e21b238f1864","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":10,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"d7eeb7f0-ba1c-49f8-873b-1bbf60e758b4","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":10,"box":{"x":70,"y":483,"width":811,"height":11}},{"id":"e9b6e2d9-b216-45ea-b9f1-9a16963c4f13","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":10,"box":{"x":68,"y":498,"width":809,"height":11}},{"id":"8440df3c-5d19-4526-81bc-db379b203b02","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":10,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"a6afad21-cee9-4061-a296-44f7acbcf570","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":10,"box":{"x":69,"y":528,"width":441,"height":12}},{"id":"a01a94b9-bd8b-4927-9565-3068c2d2df6b","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":10,"box":{"x":101,"y":551,"width":777,"height":11}},{"id":"8e8b3efd-b11a-45b3-9473-b129b310a203","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":10,"box":{"x":69,"y":566,"width":832,"height":11}},{"id":"5b5a5504-cd00-4943-a554-0cf926077975","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":10,"box":{"x":68,"y":581,"width":820,"height":11}},{"id":"8bbd8fc7-998f-4922-b1d9-a77ffc0d9327","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":10,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"1159ba85-0e91-407a-a1ce-6d4d6fdea176","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":10,"box":{"x":69,"y":612,"width":819,"height":11}},{"id":"18c7f91a-7db0-490f-a8cf-0f018a2c88ee","block_type":"box","text":"the operations of the Fund.","page_number":10,"box":{"x":68,"y":627,"width":192,"height":11}},{"id":"a589a32a-2477-40dc-a13e-114672e9cca2","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":10,"box":{"x":102,"y":649,"width":785,"height":12}},{"id":"f8270990-1555-417c-9987-07a101e48891","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":10,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"7bc40f26-161a-4475-9dc5-cefd9feb3db4","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":10,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"6109fdec-82d2-491a-8f80-60c9b0adfe13","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":10,"box":{"x":68,"y":695,"width":820,"height":11}},{"id":"e17da99c-0848-4c1d-8e4a-311a9d376c73","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":10,"box":{"x":70,"y":710,"width":811,"height":11}},{"id":"74679eee-f615-452e-99a9-97eddb615bcd","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":10,"box":{"x":70,"y":725,"width":767,"height":11}},{"id":"6100ae27-8b2a-4e23-9208-efa1c142df77","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":10,"box":{"x":69,"y":740,"width":815,"height":11}},{"id":"ffe36bba-ff7a-4700-a8f6-adff8c2b92fa","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":10,"box":{"x":70,"y":755,"width":803,"height":11}},{"id":"644f2590-364e-4112-b910-b6cda06216bb","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":10,"box":{"x":69,"y":770,"width":840,"height":12}},{"id":"3396b5be-d2a6-44e2-a187-8b2a35b96831","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":10,"box":{"x":69,"y":785,"width":812,"height":12}},{"id":"ae1550c6-ca64-4e91-9f17-f973316e14ba","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":10,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"f94fc9e7-28f4-460b-8f96-af91057e6e16","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":10,"box":{"x":69,"y":816,"width":812,"height":11}},{"id":"6a17af39-f5ef-4020-aaed-7d301fe7f609","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":10,"box":{"x":68,"y":831,"width":818,"height":11}},{"id":"8829ce6e-760a-4b72-b8bf-d79d5dac01cf","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":10,"box":{"x":70,"y":846,"width":759,"height":11}},{"id":"84bc96b0-a141-432c-a737-b1940a99cbcd","block_type":"box","text":"per forming their oversight responsibilities.","page_number":10,"box":{"x":70,"y":861,"width":299,"height":11}},{"id":"6d14f7e0-5d89-4557-97ef-3db3dd760e35","block_type":"box","text":"Audit Committee.","page_number":10,"box":{"x":101,"y":884,"width":122,"height":9}},{"id":"5b9f4c17-3e26-4a42-82d8-29d290b263ce","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":10,"box":{"x":229,"y":884,"width":673,"height":11}},{"id":"357acfda-d1f9-43be-85c7-867a656e20cf","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":10,"box":{"x":68,"y":899,"width":831,"height":11}},{"id":"57b8fe02-9032-4415-a847-f414798308c7","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"95874ca6-44e6-4a75-842c-f01b725d7ce9","block_type":"box","text":"NM1026U-5978647-10/232","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1a87d564-118f-41b9-baf0-647dc5577c30","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":11,"box":{"x":68,"y":45,"width":820,"height":11}},{"id":"196be1c0-513f-45dd-8da3-f1fe55d18573","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":11,"box":{"x":68,"y":60,"width":823,"height":11}},{"id":"5bc3da9d-e4dd-473c-a6fb-3c5c052c882b","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":11,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"ba90ee42-f197-4542-b928-4743ddfa48d3","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":11,"box":{"x":70,"y":90,"width":825,"height":11}},{"id":"73cb0ef7-2d2c-437a-8512-80b227657c75","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":11,"box":{"x":70,"y":105,"width":807,"height":11}},{"id":"7723812c-a2e4-42e3-9bdb-be4ff82e0e60","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":11,"box":{"x":68,"y":120,"width":781,"height":11}},{"id":"74ad4bb6-3556-4d3e-b277-e2f24d34532c","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":11,"box":{"x":69,"y":136,"width":834,"height":11}},{"id":"dbc03052-4f5e-487d-8049-376bc7fe2781","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":11,"box":{"x":69,"y":150,"width":838,"height":12}},{"id":"73044686-0936-4898-9ad9-d7af5cb2d900","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":11,"box":{"x":69,"y":166,"width":825,"height":11}},{"id":"1721fa9e-f81d-4d90-bfb7-49f1b78900b5","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":11,"box":{"x":70,"y":181,"width":809,"height":11}},{"id":"2d034d4f-60bb-4dd0-b529-a104c90446a3","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":11,"box":{"x":70,"y":196,"width":815,"height":11}},{"id":"b002d74f-ce9b-45de-8afe-55adb05d1b60","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":11,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"2fb559f2-f91e-4fdd-afcb-95b080879c0c","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":11,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"e929a211-e510-43be-80b2-35ec1cbe907f","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":11,"box":{"x":69,"y":241,"width":819,"height":11}},{"id":"680a73ab-66ea-4ca7-83dc-1782e115cb15","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":11,"box":{"x":69,"y":256,"width":812,"height":12}},{"id":"f10fa8c8-f904-4e96-8207-93b5c3e04823","block_type":"box","text":"During the twelve months ended May 31, 2026, the Audit Committee met four times.","page_number":11,"box":{"x":70,"y":271,"width":605,"height":12}},{"id":"4fb8d129-b140-4fe1-a06f-c1390a8cd881","block_type":"box","text":"Governance and Nominating Committee.","page_number":11,"box":{"x":102,"y":294,"width":286,"height":11}},{"id":"4e2358de-e7e9-457a-99ad-f17b0ac86b98","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":11,"box":{"x":394,"y":294,"width":464,"height":11}},{"id":"fdf8861a-2077-495f-ab99-d6bacaf45da8","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":11,"box":{"x":70,"y":309,"width":838,"height":11}},{"id":"827b4279-7737-4720-bf32-57d94afc59d9","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":11,"box":{"x":70,"y":324,"width":784,"height":11}},{"id":"43fcf83c-4dfc-4e98-9466-6f1db72bd2c1","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":11,"box":{"x":69,"y":339,"width":803,"height":12}},{"id":"f451b945-7523-4346-a374-355148840426","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":11,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"699cd5f5-7edb-4ecd-9a58-f7cb42656ded","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":11,"box":{"x":70,"y":370,"width":828,"height":11}},{"id":"6c416a30-5af0-4788-9462-b6404fb65260","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":11,"box":{"x":70,"y":385,"width":809,"height":11}},{"id":"4fd1bcbd-ac5e-48e0-8e49-4e687ebd558c","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":11,"box":{"x":69,"y":400,"width":838,"height":11}},{"id":"7051fcd4-6686-41e2-b0ed-8ef917d8ac4c","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":11,"box":{"x":69,"y":415,"width":800,"height":11}},{"id":"368c638a-9277-4b6e-bddf-b8f0a68ce650","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":11,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"a56b4a73-f5fd-4edc-b2be-95e912fb2bb6","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":11,"box":{"x":69,"y":445,"width":829,"height":11}},{"id":"649fb4ba-d32a-4a4d-88b3-95bdfea36658","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":11,"box":{"x":68,"y":460,"width":804,"height":12}},{"id":"3e8a9f18-5a71-460e-9f9b-af219b49455c","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":11,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"d0546ce5-01f0-454b-98fa-a450615c1a15","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":11,"box":{"x":70,"y":491,"width":801,"height":11}},{"id":"55f4011c-7f8f-45a7-81e8-79734cf355de","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":11,"box":{"x":69,"y":506,"width":799,"height":11}},{"id":"78280c68-6ec9-4702-9f74-547e41f2cd95","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":11,"box":{"x":70,"y":521,"width":776,"height":11}},{"id":"c212e25c-f3af-425e-b6f0-3ae1daa65de0","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":11,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"5861fdb5-305f-40d3-90ea-70559c356af4","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":11,"box":{"x":68,"y":551,"width":812,"height":11}},{"id":"d31c139f-a456-4ffc-b326-307ccb754496","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":11,"box":{"x":69,"y":566,"width":823,"height":11}},{"id":"72cd4459-cfe5-47fa-9beb-8773e9f0b861","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":11,"box":{"x":70,"y":581,"width":832,"height":12}},{"id":"3ebcc10c-e741-49d9-ae17-41b6c3e523f6","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":11,"box":{"x":69,"y":596,"width":811,"height":12}},{"id":"39c846bf-60eb-4d7c-a330-56920f9fa8c6","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the twelve months ended May 31, 2026, the","page_number":11,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"e7fcf653-1fa7-402f-84d3-1be36f3d6399","block_type":"box","text":"Governance Committee met ten times.","page_number":11,"box":{"x":69,"y":627,"width":274,"height":9}},{"id":"f526a75c-01be-41ec-999a-b3e0fb37d9c1","block_type":"box","text":"Compliance Committee.","page_number":11,"box":{"x":102,"y":649,"width":168,"height":11}},{"id":"46383a01-527f-405c-87f7-74197559cef2","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":11,"box":{"x":276,"y":649,"width":629,"height":11}},{"id":"56cc1f2a-1ced-41e0-bdc9-61eabb7814fa","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":11,"box":{"x":68,"y":664,"width":828,"height":12}},{"id":"7fb6a453-84e8-41db-b29a-a0d823d6747c","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":11,"box":{"x":68,"y":680,"width":771,"height":11}},{"id":"3a837eda-a694-4e10-bdec-bba11fc31386","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":11,"box":{"x":69,"y":695,"width":835,"height":11}},{"id":"bd084d47-0a99-426c-ad23-b8935508e881","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":11,"box":{"x":70,"y":710,"width":754,"height":11}},{"id":"d870b1d3-0325-4a1f-93db-a731efc23c00","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":11,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"66e3033c-7c04-4933-a2e1-287574c0adcd","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":11,"box":{"x":69,"y":740,"width":815,"height":11}},{"id":"3a224032-aa56-4896-8c6d-b922ad160abf","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":11,"box":{"x":69,"y":755,"width":785,"height":11}},{"id":"cf582650-8737-4ba9-a176-4d9c21f1e19a","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":11,"box":{"x":69,"y":770,"width":811,"height":11}},{"id":"a13abdf3-cafb-45c4-aadf-e6d571e68336","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":11,"box":{"x":69,"y":785,"width":812,"height":12}},{"id":"9aae957a-97e1-4dab-9a25-df66e0adea8b","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":11,"box":{"x":69,"y":801,"width":812,"height":11}},{"id":"756f53d3-5ecd-4754-9f6f-5b78be31a7c7","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":11,"box":{"x":69,"y":816,"width":825,"height":11}},{"id":"68f2bd46-c2c8-4194-98bc-86d7447fcd8e","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the twelve","page_number":11,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"6fae303d-6938-449b-a823-2684746b384a","block_type":"box","text":"months ended May 31, 2026, the Compliance Committee met four times.","page_number":11,"box":{"x":69,"y":846,"width":525,"height":11}},{"id":"a531ee0e-1f6d-4bce-b8f4-ae5c16bbd576","block_type":"box","text":"Per formance Oversight Committee.","page_number":11,"box":{"x":102,"y":869,"width":248,"height":11}},{"id":"683b126f-00c3-45fe-9249-20844678703c","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":11,"box":{"x":356,"y":869,"width":531,"height":11}},{"id":"0486b467-2e6c-4f2f-870a-f27ae8ec33e0","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":11,"box":{"x":69,"y":884,"width":829,"height":11}},{"id":"604cbf74-0fe8-417d-b13b-fd4cd9697244","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":11,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"064dc356-6f12-44b1-b1a7-7a47c0a213bc","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"d4bc3546-7ab5-454c-ae08-494a66554b6e","block_type":"box","text":"NM1026U-5978647-11/232","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"07ffc0cf-4dff-48a4-b04e-b730bf2b8801","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":12,"box":{"x":68,"y":45,"width":832,"height":11}},{"id":"038d792e-bcc2-413b-8e83-799246c818b6","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":12,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"e1e8c692-0e5a-4164-bf7f-20555ea506a7","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":12,"box":{"x":69,"y":75,"width":782,"height":11}},{"id":"cf159c52-7ec3-4e94-8562-ee9149b1c6bf","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":12,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"f5870e26-2858-4ec7-83df-f575ce68b921","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":12,"box":{"x":69,"y":105,"width":816,"height":11}},{"id":"a983d6ff-78ba-453c-ac9a-10443fe28532","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":12,"box":{"x":69,"y":120,"width":803,"height":11}},{"id":"fcd8985b-2194-4784-9f03-dc8b5166bff4","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":12,"box":{"x":69,"y":135,"width":827,"height":12}},{"id":"9d849e2e-9743-40f2-b8a3-631a1bd4f855","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":12,"box":{"x":68,"y":150,"width":811,"height":12}},{"id":"7df7bbf9-f1aa-4f51-b60f-d22d72c0b73d","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":12,"box":{"x":69,"y":166,"width":757,"height":11}},{"id":"3e96c82e-af7c-4126-b3e1-9ba2ebfbc313","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":12,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"6a2c5d06-46da-481a-9fa8-68a01e46fc54","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":12,"box":{"x":68,"y":196,"width":800,"height":11}},{"id":"6871deca-d17d-4801-9f2b-0b38dbcf5593","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":12,"box":{"x":69,"y":211,"width":780,"height":11}},{"id":"8999081a-e2cf-46d4-a34c-fe0a13601c51","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the twelve","page_number":12,"box":{"x":69,"y":226,"width":810,"height":11}},{"id":"0fc82924-c740-4a29-b679-fed4e8de968d","block_type":"box","text":"months ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":12,"box":{"x":69,"y":241,"width":602,"height":11}},{"id":"e5da18ee-52ab-4052-b9c0-ed74f9a4fd7d","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":12,"box":{"x":101,"y":264,"width":186,"height":11}},{"id":"c98bb0a5-ca1e-4768-9dff-8365c1b3c691","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":12,"box":{"x":293,"y":264,"width":598,"height":11}},{"id":"2c133909-04f6-43c6-93f8-bcf4cbea40f1","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":12,"box":{"x":70,"y":279,"width":817,"height":11}},{"id":"4cd92105-ab3d-4f9d-b9d8-ff3e6b56bd21","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":12,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"c62b5ffd-01ad-40a1-9c30-43fc5983a88b","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":12,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"942e3b05-dbdc-4c6d-89f8-69c80dde748b","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":12,"box":{"x":69,"y":324,"width":813,"height":12}},{"id":"dd0853e1-5046-4777-a6f9-d59aa481b274","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":12,"box":{"x":68,"y":339,"width":816,"height":12}},{"id":"ccc9c969-733a-4aa0-9eec-470f827d0918","block_type":"box","text":"the twelve months ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":12,"box":{"x":68,"y":355,"width":606,"height":11}},{"id":"949a5ef4-04f5-454c-9841-3dabcb7e89c0","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":12,"box":{"x":101,"y":377,"width":771,"height":11}},{"id":"b27ea01d-a647-4725-a7bb-60f4df55c7ae","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":12,"box":{"x":69,"y":392,"width":827,"height":12}},{"id":"ea3ef78c-3c6d-41b4-b732-60dea9003768","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":12,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"1bbd4453-6345-46b2-b9dd-02539bb80895","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":12,"box":{"x":69,"y":423,"width":825,"height":11}},{"id":"c66b93f6-c583-4df9-93a0-9b56555a8499","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":12,"box":{"x":70,"y":438,"width":807,"height":11}},{"id":"ed8261a3-c550-442c-9985-5601a07dbe90","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":12,"box":{"x":70,"y":453,"width":787,"height":11}},{"id":"5dea0f48-64e6-4640-b1ae-933fb81f9ad3","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":12,"box":{"x":69,"y":468,"width":805,"height":11}},{"id":"5de89d65-515e-4247-8f49-43731401129b","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":12,"box":{"x":68,"y":483,"width":794,"height":11}},{"id":"9ab21f3a-3fd4-44a0-9845-3e5a93d6781d","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":12,"box":{"x":68,"y":498,"width":829,"height":11}},{"id":"d24e8ef6-34d1-46ec-97f6-19e9b6234a60","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":12,"box":{"x":69,"y":513,"width":823,"height":11}},{"id":"137f202b-ba9c-4806-b04a-2c0c975f3fdb","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":12,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"99d9d217-f044-46e2-9029-68428e34fd69","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":12,"box":{"x":69,"y":543,"width":473,"height":12}},{"id":"7d10e747-29ff-4e5f-871c-0cd63babc0d3","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":12,"box":{"x":102,"y":566,"width":792,"height":11}},{"id":"012cc5c3-009d-4599-92ed-c79c8e5e2cd4","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":12,"box":{"x":69,"y":581,"width":807,"height":12}},{"id":"e7128872-a5f6-4f8e-b812-73505883ea60","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":12,"box":{"x":69,"y":596,"width":837,"height":12}},{"id":"84691d1b-3557-46eb-81a2-bb5b3cc4173c","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":12,"box":{"x":70,"y":612,"width":759,"height":11}},{"id":"518bdcc4-31eb-41ac-9d94-ed9e83aa7aef","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":12,"box":{"x":70,"y":627,"width":685,"height":11}},{"id":"59929536-fd23-41b6-9a4f-79cdbb679658","block_type":"box","text":"ad hoc","page_number":12,"box":{"x":762,"y":627,"width":47,"height":9}},{"id":"ab9dfdac-3f92-481e-aae4-4ac6f9f5596d","block_type":"box","text":"committees","page_number":12,"box":{"x":814,"y":627,"width":82,"height":9}},{"id":"1e00b1b6-a239-4600-b6cd-88c3bd9aa80a","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":12,"box":{"x":68,"y":642,"width":395,"height":11}},{"id":"c692df4e-66eb-46e3-aaf1-3e9ed8e58f2d","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":12,"box":{"x":101,"y":664,"width":751,"height":11}},{"id":"f448babf-4809-4198-a550-042424e33b40","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":12,"box":{"x":69,"y":680,"width":492,"height":11}},{"id":"0d51a62c-e202-4d9a-af7c-ff95233065df","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":12,"box":{"x":68,"y":708,"width":409,"height":9}},{"id":"dc5c85c8-be90-491c-aad6-5fa6888e32bd","block_type":"box","text":"Independent Trustees","page_number":12,"box":{"x":70,"y":725,"width":154,"height":10}},{"id":"5f3ccbdd-8eca-4669-acbd-bd4299497239","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":12,"box":{"x":69,"y":739,"width":781,"height":12}},{"id":"b26c8a26-e8fd-4b93-a36c-f7693d688946","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":12,"box":{"x":265,"y":755,"width":604,"height":11}},{"id":"c017e6a4-d802-46c0-a9e0-3365b374d4a2","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":12,"box":{"x":265,"y":770,"width":623,"height":11}},{"id":"6f7d5229-12cc-4c71-9806-c77a08bd73b3","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":12,"box":{"x":265,"y":785,"width":637,"height":11}},{"id":"2751f237-4159-4b62-bec8-ac4a1af8ff01","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":12,"box":{"x":265,"y":800,"width":631,"height":11}},{"id":"4fe3c9c0-3c49-4ed6-9517-8bdf9e48033e","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":12,"box":{"x":264,"y":815,"width":626,"height":11}},{"id":"e8664eb3-6cfb-402e-a024-ede2b462cba3","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":12,"box":{"x":265,"y":830,"width":639,"height":11}},{"id":"dde11964-6425-434c-8251-07fa8af4e597","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":12,"box":{"x":264,"y":845,"width":637,"height":11}},{"id":"937afde0-4e72-4fa7-9cdf-cbce3b8112f3","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":12,"box":{"x":265,"y":861,"width":586,"height":11}},{"id":"1d6b41c2-5cf7-4129-9f77-836321e267b1","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":12,"box":{"x":265,"y":875,"width":640,"height":12}},{"id":"0fc26418-6e60-4d26-b0d2-b3698534a10b","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":12,"box":{"x":265,"y":891,"width":389,"height":11}},{"id":"6e17f5fd-3dd8-44a8-89c3-8ed59a779560","block_type":"box","text":"I-10","page_number":12,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"6dbcbb7c-b2b4-47c4-87df-a971bf3c6eb1","block_type":"box","text":"NM1026U-5978647-12/232","page_number":12,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"abfd4cff-553a-49a7-b69d-1883039a70a6","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":13,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"5bcacadc-8a79-41f1-9471-9eaa2c370b58","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":13,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"91184e4c-9ef6-4b99-b152-32614e6c1814","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":13,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"7c62e76e-d28c-48cc-b988-2e789dba47e1","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":13,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"2bd708b9-caa5-476e-8c4c-77ba2986ad69","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":13,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"7ba65dff-3262-4070-b9b5-e45816a774fb","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":13,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"4dfca597-f510-44d8-8930-b90a492f02f0","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":13,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"7ef1561f-be08-4097-8a44-eeecaca554b9","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":13,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"3e18175d-66f5-43ba-aa07-12c7e3155a64","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":13,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"1d4f0a71-80a1-49e5-8356-7b777cf29345","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":13,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"8359f66c-7ebb-4d4b-ba3f-325877cd329b","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":13,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"5b61b4e0-7054-4aec-b62d-b24afc5b5ac3","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":13,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"0f392585-a026-4ff5-9f22-1abefcd742da","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":13,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"675deb61-9a8e-4288-a176-eab78fe62a8e","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":13,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"d15ec3ec-c2c5-45f5-8168-62fe1ce9ed27","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":13,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"baf3632b-c164-42f8-8bc5-a6720dee0144","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":13,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"9fa35fb0-8999-4c67-8a27-c3cf4e4c7b2a","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":13,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"5f98bc4f-45fd-4d70-ae34-fd3b80fa0ea6","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":13,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"58fccef6-c65d-4db1-a099-80be4ef15d3c","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":13,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"7fa71a8e-4655-46d3-b15f-ccd7a1f91aec","block_type":"box","text":"perspective on the markets and the economy.","page_number":13,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"76581d81-f661-4602-b2c5-a481271931aa","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":13,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"f9c81d02-6096-4305-bc86-fd44f90d8ff9","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":13,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"f5a23ea7-48ed-48fc-8b98-b33ad1e7331a","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":13,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"c859edd4-62e4-4960-a5a3-c14695fbc5ed","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":13,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"cbb51e6c-7415-4b2e-85de-9d7a3909f611","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":13,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"2566989f-f68f-46c9-b5d3-7afd24b15572","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":13,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"23de0657-1357-466a-9d58-630342f8adfa","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":13,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"74756b85-6abe-4297-8852-586e61f02db7","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":13,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"bfea3771-3d3e-46d1-af22-69fa5cd3dfbe","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":13,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"0de7207c-4779-42f3-8253-13b49f2cc8ae","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":13,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"3efd57f9-6690-4a5f-9958-318a90b1fbd2","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":13,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"d6689c63-37c3-4cfa-8e0a-a35e1d3829a6","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":13,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"4703f05d-135d-4d9d-b769-865635774bab","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":13,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"a740936d-33f1-4b00-93a8-d6e5d6737e9d","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":13,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"ef700c6b-4d76-4412-8aea-57e6f6967968","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":13,"box":{"x":265,"y":587,"width":625,"height":11}},{"id":"1dfd6be7-c63b-4647-be8e-f19917c41e1d","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":13,"box":{"x":265,"y":602,"width":625,"height":11}},{"id":"0f10a3d1-a8aa-4098-a58e-5ae4b28fa4bc","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":13,"box":{"x":265,"y":617,"width":623,"height":11}},{"id":"3f03523d-a81d-4047-8b8a-525c7ef738ed","block_type":"box","text":"rules.","page_number":13,"box":{"x":265,"y":633,"width":38,"height":8}},{"id":"cfba3ab2-55d6-4af1-8c4b-b7c274c30503","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":13,"box":{"x":70,"y":655,"width":806,"height":11}},{"id":"7baaeeea-99ef-4266-983c-04c2b475626c","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":13,"box":{"x":264,"y":670,"width":584,"height":11}},{"id":"676e3f23-15ab-45e4-9fd7-2cca66510d62","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":13,"box":{"x":265,"y":686,"width":622,"height":11}},{"id":"87f920e7-de15-44a1-bd7d-e5de9eb9b578","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":13,"box":{"x":265,"y":700,"width":638,"height":12}},{"id":"38d3dedb-00f2-4e7a-8f94-ceddb9595a04","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":13,"box":{"x":265,"y":715,"width":570,"height":12}},{"id":"fa56216b-7cd0-4baf-995c-82994e3e026a","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":13,"box":{"x":265,"y":731,"width":642,"height":11}},{"id":"b0ecda3e-8fb5-4039-8634-a7a9e7d0b3b4","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":13,"box":{"x":265,"y":746,"width":626,"height":11}},{"id":"73e0c68c-57b6-4ace-93b4-57f193814ab1","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":13,"box":{"x":265,"y":761,"width":630,"height":11}},{"id":"f1d00a2c-5213-47d0-b35b-3d3e9dddbfbd","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":13,"box":{"x":265,"y":776,"width":602,"height":11}},{"id":"ee6dbc02-e071-4092-bde1-5af08220cdc8","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":13,"box":{"x":264,"y":791,"width":643,"height":11}},{"id":"eb7e8f30-8f66-42c5-9ed7-503ecd1696db","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":13,"box":{"x":264,"y":806,"width":639,"height":11}},{"id":"181e6fce-8a48-4981-a73e-6acf3a6ef480","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":13,"box":{"x":264,"y":821,"width":641,"height":11}},{"id":"618fe191-d92f-4b07-a140-c013b56676a1","block_type":"box","text":"applicable Commission rules.","page_number":13,"box":{"x":265,"y":837,"width":208,"height":10}},{"id":"15e819cd-e5a7-44f5-84e7-2e3d3cab5306","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ed657822-9e2a-4b01-89e0-80750e9dbd4a","block_type":"box","text":"NM1026U-5978647-13/232","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6fb34477-47ad-491c-b92d-ae7ddeea324c","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":14,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"a7a419e1-c8c0-465b-bf17-ab6174eb5841","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":14,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"99b33de5-06fd-4beb-837a-8505b986d61a","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":14,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"15962d40-bd83-451d-a7a7-5bb9d555c224","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":14,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"d83990dc-b71a-42e9-847c-a67d9bb50895","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":14,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"1a0df24b-3cd8-4a49-8c9e-26bc91bc6163","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":14,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"12a6b251-cc40-47a1-8409-0eb028f2c76e","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":14,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"e2fda5da-cea8-482c-ad4d-2b6aa713c390","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":14,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"c0979aaf-e708-4ccd-a10a-27dd9278d9fc","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":14,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"cdf4267f-5536-4088-919f-51351aecfb0c","block_type":"box","text":"ar ticles and books on these topics.","page_number":14,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"ffde43d2-3bfa-4ed9-820c-79e0233209eb","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":14,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"1355d248-aca6-4fa5-bbc5-9bd937ad54cb","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":14,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"f9cac2ab-bfd5-454e-aa0a-564314cd5ba6","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":14,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"55f9a78d-f00e-4354-9b37-5579b5046d06","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":14,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"d37efd14-f35c-48b9-a4e3-3580126f920b","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":14,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"a55d619f-a2d9-4466-9247-cfbaa2906d84","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":14,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"901a1c0e-a2b9-4d9c-ad97-c2a729fac654","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":14,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"fd288359-e3c6-42b7-9d52-18f4911ba157","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":14,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"2b06ef79-7d23-49b0-b5cb-f7f6c87839b6","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":14,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"0678b513-5c59-49f6-bff3-5208055fa057","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":14,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"1e54cbc5-2e04-4339-82f0-aa97d44e8b5d","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":14,"box":{"x":265,"y":368,"width":626,"height":11}},{"id":"a6ad0396-d046-48d2-84ca-f0955c677b77","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":14,"box":{"x":265,"y":383,"width":592,"height":11}},{"id":"3301e589-6c1a-4098-a9a1-b26f0783551d","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":14,"box":{"x":265,"y":398,"width":629,"height":11}},{"id":"eeca5b08-8959-40d8-ac31-652926a19330","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":14,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"4c0dcc82-cac1-4522-a730-0f2def552563","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":14,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"6da40cfd-0713-419c-bfb7-46f603f681a5","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":14,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"89a1583f-bee0-4d4b-abf3-f2f90372e330","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":14,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"e33300c2-daaf-4cc1-96a0-6b681a8cad91","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":14,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"b09c3afa-a3a2-48db-b389-12f62051265b","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":14,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"ddb2d62e-c858-4f53-bb75-e7c111b1dd8d","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":14,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"60169db4-6dc1-45eb-a297-82ea64719e30","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":14,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"c05cffa8-112b-437b-a5c9-f41def689bc9","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":14,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"8ddb9501-0258-4532-9c05-fb72de438b08","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":14,"box":{"x":265,"y":549,"width":635,"height":11}},{"id":"b1269265-6d5b-4961-93b5-61012c9db917","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":14,"box":{"x":265,"y":564,"width":642,"height":12}},{"id":"b6873713-43ac-438a-8e6d-5f58c2bd39cf","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":14,"box":{"x":265,"y":580,"width":627,"height":11}},{"id":"d29dabc1-7f6a-4065-9f4e-43710d6c7805","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":14,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"ea2da8a2-57ce-475a-833c-696ed259d7f1","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":14,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"c10e7388-c592-46e6-ae60-a5525e2120f0","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":14,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"903e913b-5f1f-4fdb-a02e-dbe09b782936","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":14,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"bf0a222a-cc47-4ccf-8229-e13e631873df","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":14,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"deaa3203-3873-40f9-aeac-a1dc8bd5363a","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":14,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"022c4a60-a480-4819-87f4-e9fe96f4254f","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":14,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"c7fc87c4-8d80-4c48-9993-028cf10c3ec6","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":14,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"c7adea9d-4b7f-4e39-ad8e-28f19c32333c","block_type":"box","text":"various private and non-profit boards.","page_number":14,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"766dd8ba-49ec-41c9-9b68-8a22daae0e24","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":14,"box":{"x":70,"y":746,"width":833,"height":11}},{"id":"cf5cff41-4a87-411a-83f7-af726729ce2b","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":14,"box":{"x":265,"y":761,"width":638,"height":11}},{"id":"e12840e7-7224-4c9e-b5a9-c158754c9045","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":14,"box":{"x":265,"y":776,"width":608,"height":11}},{"id":"66641719-e1ee-48c0-bb2d-bc118040b51a","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":14,"box":{"x":264,"y":791,"width":645,"height":11}},{"id":"d074a6de-dfd7-4f68-b786-f9c6c6acb40f","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":14,"box":{"x":264,"y":806,"width":639,"height":9}},{"id":"20b91731-b34e-4220-9ae1-5578e8882297","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":14,"box":{"x":264,"y":821,"width":573,"height":12}},{"id":"2e397673-b2e9-49ed-bad5-5519354d7cbe","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":14,"box":{"x":265,"y":836,"width":625,"height":12}},{"id":"c3a06252-73ca-4dfb-8b94-bfb4048e8540","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":14,"box":{"x":265,"y":852,"width":610,"height":11}},{"id":"b2129fb2-efb3-43c3-9661-90ee13228077","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":14,"box":{"x":265,"y":867,"width":642,"height":11}},{"id":"08d031ec-e54f-4357-a856-55c86f9775d8","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":14,"box":{"x":265,"y":882,"width":583,"height":11}},{"id":"ae7c4cd4-27df-4a47-a41b-f883fe613a74","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":14,"box":{"x":264,"y":897,"width":369,"height":11}},{"id":"89231238-7eea-4434-ac1b-789ec38ed007","block_type":"box","text":"I-12","page_number":14,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"57a75cc1-9305-4811-91e8-3297f8165ebb","block_type":"box","text":"NM1026U-5978647-14/232","page_number":14,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fef1e5c7-f0f6-4837-a8ff-3b6b4a8bd4d0","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":15,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"94d13ca1-35ec-43b6-97ff-835ca56ad18f","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":15,"box":{"x":70,"y":65,"width":807,"height":12}},{"id":"3819e399-bdc3-4c0e-b737-bdb494b8f3d2","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":15,"box":{"x":264,"y":81,"width":641,"height":11}},{"id":"1861fc3d-aea2-402a-adc9-423bddcc4bc5","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":15,"box":{"x":265,"y":96,"width":618,"height":11}},{"id":"60cd7c6d-ee0b-49ba-9566-d7a190b6c9b6","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":15,"box":{"x":265,"y":111,"width":594,"height":11}},{"id":"e97c4ed1-9ad7-48c8-b9d3-694c350a51a1","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":15,"box":{"x":265,"y":126,"width":639,"height":11}},{"id":"6e09097e-f302-4d9b-a8e9-558613d46023","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":15,"box":{"x":265,"y":141,"width":575,"height":11}},{"id":"2f20076b-bbcc-4d9d-8326-1ce0724a7ee6","block_type":"box","text":"Commission rules.","page_number":15,"box":{"x":265,"y":156,"width":131,"height":9}},{"id":"0ecd6a48-86fe-46d3-a634-2e28f53b28a8","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":15,"box":{"x":69,"y":179,"width":808,"height":11}},{"id":"c4807b1d-21b0-46a8-a255-4f2fb3a923c3","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":15,"box":{"x":265,"y":194,"width":630,"height":11}},{"id":"5367213f-846c-4e52-a7ba-0752a9a71262","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":15,"box":{"x":265,"y":209,"width":627,"height":11}},{"id":"5028c7b7-2fdc-47c8-87b1-d60122707a68","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":15,"box":{"x":265,"y":224,"width":632,"height":11}},{"id":"5f2aa281-1f0e-4c90-9ef9-4b1ca94e473c","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":15,"box":{"x":265,"y":239,"width":615,"height":12}},{"id":"9a95be65-074d-4f77-ae44-85f90993bf1b","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":15,"box":{"x":265,"y":254,"width":608,"height":12}},{"id":"f9a58275-ed74-4570-befe-dbe2fba7c343","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":15,"box":{"x":264,"y":270,"width":620,"height":11}},{"id":"9e6b3b49-1c81-4c4d-94e4-dc104ca4e810","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":15,"box":{"x":265,"y":285,"width":584,"height":11}},{"id":"5c1d348e-95fe-41a3-b965-ab3a8d93f1a4","block_type":"box","text":"committee financial exper t, as such term is defined in the applicable Commission rules.","page_number":15,"box":{"x":264,"y":300,"width":629,"height":11}},{"id":"8be084bf-10ee-4f6e-a3f8-d498cfc0dfad","block_type":"box","text":"Interested Trustees","page_number":15,"box":{"x":70,"y":323,"width":138,"height":8}},{"id":"0ef8abb7-cf86-4e9f-800b-e38c11c698e4","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":15,"box":{"x":70,"y":338,"width":823,"height":11}},{"id":"43cef295-2bc4-43d5-a711-88bc106b26db","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":15,"box":{"x":264,"y":353,"width":593,"height":11}},{"id":"cd1200ab-77e2-4825-a98e-7144ad092580","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":15,"box":{"x":265,"y":368,"width":629,"height":11}},{"id":"50c11b11-2a7c-4021-a509-4fcd53cb0671","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":15,"box":{"x":265,"y":383,"width":639,"height":11}},{"id":"230b0827-a529-4ad7-8ee7-df0c9b812cdc","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":15,"box":{"x":265,"y":398,"width":617,"height":11}},{"id":"d162f759-824b-4caf-8916-b3c7b201eeda","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":15,"box":{"x":264,"y":413,"width":634,"height":11}},{"id":"98d9758c-5930-4fa2-8262-01f0dbb2c772","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":15,"box":{"x":265,"y":428,"width":624,"height":11}},{"id":"f4b203f2-b5c0-4c89-aee3-bbc2969287c7","block_type":"box","text":"and iShares","page_number":15,"box":{"x":265,"y":443,"width":84,"height":9}},{"id":"78417031-da0e-49e9-b6a0-685195d7071c","block_type":"box","text":"®","page_number":15,"box":{"x":350,"y":444,"width":6,"height":4}},{"id":"d57a5685-d7e8-49c8-bf33-00ceff695950","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":15,"box":{"x":362,"y":443,"width":478,"height":11}},{"id":"ac7efcfc-7125-46aa-94b5-e6e85cf458ba","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":15,"box":{"x":265,"y":459,"width":585,"height":11}},{"id":"4cd3595f-a709-4817-86df-8dded3f83f10","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":15,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"dcef1972-5eeb-457e-bb1f-c3f9f80d2bf1","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":15,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"593db907-832c-462c-b238-403eb856ec1d","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":15,"box":{"x":69,"y":511,"width":800,"height":12}},{"id":"380302ec-fe1a-40d4-9f83-bec841c3b3b7","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":15,"box":{"x":265,"y":526,"width":593,"height":12}},{"id":"d87faf24-a2d0-4866-afc5-28a668318c27","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":15,"box":{"x":265,"y":542,"width":633,"height":11}},{"id":"d2d02ed2-076b-4704-88a7-f3812fd8e99e","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":15,"box":{"x":265,"y":557,"width":542,"height":11}},{"id":"a8556a47-f3c8-47f1-857a-7b2da38602b7","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":15,"box":{"x":265,"y":572,"width":617,"height":11}},{"id":"3a5e3829-864c-43c3-84bb-8f4753f4429b","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":15,"box":{"x":265,"y":587,"width":620,"height":11}},{"id":"5642f19a-a2b0-4301-89a1-0c028b526c4a","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":15,"box":{"x":265,"y":602,"width":616,"height":11}},{"id":"c15f3a2c-9b09-4a85-88ae-dd864e32590b","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":15,"box":{"x":265,"y":617,"width":639,"height":12}},{"id":"9d0b2abf-e1fb-4394-a482-f41d61eecac2","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":15,"box":{"x":265,"y":632,"width":603,"height":9}},{"id":"5ddb89f6-9e32-4bf4-ab64-7f6575fb50ec","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":15,"box":{"x":265,"y":647,"width":582,"height":12}},{"id":"7a209ae3-90cd-45af-84ed-54d776220c6e","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":15,"box":{"x":265,"y":663,"width":632,"height":11}},{"id":"d8e54ad1-1c49-4655-bac4-7be7592f7bcf","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. 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Over","page_number":20,"box":{"x":79,"y":147,"width":548,"height":9}},{"id":"5e6b1a64-a6f8-484d-a7e7-324705faaeab","block_type":"box","text":"$100,000 Over $100,000","page_number":20,"box":{"x":633,"y":147,"width":254,"height":11}},{"id":"8207f098-a174-4d3e-9126-91f4c8994147","block_type":"box","text":"Interested Trustees","page_number":20,"box":{"x":70,"y":163,"width":138,"height":8}},{"id":"2c38c36f-7ccb-479d-89d7-76ffcf16de21","block_type":"box","text":"Rober t Fairbairn","page_number":20,"box":{"x":79,"y":178,"width":113,"height":9}},{"id":"0d4e640f-7a56-4e53-8bb3-8a40182900d4","block_type":"box","text":"...........................................","page_number":20,"box":{"x":200,"y":185,"width":344,"height":1}},{"id":"be80abbd-76e5-4475-9b27-d9516545a5ae","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":633,"y":177,"width":254,"height":11}},{"id":"c1e8d7f5-0ded-4824-92af-28ad748098ba","block_type":"box","text":"John M. Perlowski. . .","page_number":20,"box":{"x":78,"y":193,"width":149,"height":9}},{"id":"95ddaf5e-ce9a-4e97-871d-7470929a8a0d","block_type":"box","text":".......................................","page_number":20,"box":{"x":233,"y":200,"width":311,"height":2}},{"id":"ff2e280a-6d8e-4bb3-af1a-2ac8dbbd63c8","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":633,"y":192,"width":254,"height":11}},{"id":"f47d0313-3280-4b8a-a737-9f3583aba98c","block_type":"box","text":"*","page_number":20,"box":{"x":69,"y":217,"width":3,"height":2}},{"id":"afc16f4d-aa04-44e8-990a-ecf2d1e48663","block_type":"box","text":"Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Trustees.","page_number":20,"box":{"x":77,"y":217,"width":769,"height":9}},{"id":"4e9ed852-a708-4ff5-87a5-082f0cfc7ca9","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":20,"box":{"x":101,"y":238,"width":767,"height":11}},{"id":"83c2dfdc-5081-4402-afe1-4f84e3ed5507","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025","page_number":20,"box":{"x":69,"y":253,"width":819,"height":11}},{"id":"49b4adf1-7e40-49fb-9387-526e2fba2527","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Trust or","page_number":20,"box":{"x":69,"y":268,"width":839,"height":11}},{"id":"ae3c5b0f-e82c-438d-9232-90acba0a7f3a","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":20,"box":{"x":68,"y":283,"width":798,"height":12}},{"id":"dfdac2ef-2571-460e-85cd-f0fa4947d25d","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":20,"box":{"x":70,"y":299,"width":831,"height":11}},{"id":"71c9545a-057f-4f59-87c5-4c76749ff2f5","block_type":"box","text":"entities.","page_number":20,"box":{"x":69,"y":314,"width":56,"height":9}},{"id":"c3da5ea6-a986-4f25-98b3-0df3d7a71f70","block_type":"box","text":"Compensation of Trustees","page_number":20,"box":{"x":69,"y":344,"width":190,"height":11}},{"id":"fa97d9f2-f011-46ec-b100-b2bddb443f4c","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":20,"box":{"x":102,"y":366,"width":791,"height":12}},{"id":"9e16d259-72f1-4816-9f35-bea921a26015","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":20,"box":{"x":68,"y":382,"width":810,"height":11}},{"id":"d4ad6d85-3a6c-402e-a372-df6d4707fc69","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":20,"box":{"x":70,"y":396,"width":838,"height":12}},{"id":"8dbdc837-acfa-44b7-8eb7-d0e8bd40ce1d","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":20,"box":{"x":69,"y":412,"width":807,"height":11}},{"id":"b30e6cbe-6c7c-4a29-8ef3-21f8e76bcd9e","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":20,"box":{"x":69,"y":427,"width":791,"height":11}},{"id":"d1d7f522-8952-43f2-8eca-fd8e95c98380","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":20,"box":{"x":68,"y":442,"width":786,"height":11}},{"id":"b87001c1-afb6-438f-9e0c-a5ca86887025","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":20,"box":{"x":69,"y":457,"width":769,"height":12}},{"id":"9c52c62d-6346-47b5-8022-d371a78ecc5c","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":20,"box":{"x":69,"y":472,"width":778,"height":12}},{"id":"5393ab81-d000-4849-9879-6765f068e84d","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":20,"box":{"x":69,"y":487,"width":689,"height":12}},{"id":"c216fb32-6387-4248-ab6f-689479e40683","block_type":"box","text":"The following table sets for th the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":20,"box":{"x":101,"y":510,"width":776,"height":11}},{"id":"10933e5b-f117-4b5b-bf9e-de63414d9abb","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the","page_number":20,"box":{"x":68,"y":525,"width":841,"height":12}},{"id":"681172c5-7b5f-4353-ac29-14d48573800e","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":20,"box":{"x":69,"y":540,"width":298,"height":12}},{"id":"87a85a75-695a-42f6-8e2c-13067be129d4","block_type":"box","text":"Name","page_number":20,"box":{"x":69,"y":609,"width":32,"height":7}},{"id":"9660b46d-3205-4694-b0d3-3c3741a7aeb9","block_type":"box","text":"Compensation","page_number":20,"box":{"x":551,"y":599,"width":83,"height":9}},{"id":"035fba5b-a218-48cc-b12a-905bf6825df0","block_type":"box","text":"from the Fund","page_number":20,"box":{"x":552,"y":609,"width":81,"height":7}},{"id":"1077b41c-dd26-40ac-a82d-9626a62be208","block_type":"box","text":"Estimated Annual","page_number":20,"box":{"x":664,"y":589,"width":102,"height":7}},{"id":"93e4d579-f7e4-48ab-9bfb-78f2a07ddfa1","block_type":"box","text":"Benefits upon","page_number":20,"box":{"x":676,"y":599,"width":79,"height":9}},{"id":"8ff02fba-c61c-482e-8747-b258aac48641","block_type":"box","text":"Retirement","page_number":20,"box":{"x":683,"y":609,"width":64,"height":7}},{"id":"4ccc7f4c-532c-4b34-80ba-27b972262f30","block_type":"box","text":"Aggregate","page_number":20,"box":{"x":822,"y":569,"width":61,"height":9}},{"id":"86d2fbc0-2192-4c73-9f6b-72794a08c3b3","block_type":"box","text":"Compensation from","page_number":20,"box":{"x":796,"y":579,"width":113,"height":9}},{"id":"042dbb07-b1d9-46ae-ab96-25404dc4d547","block_type":"box","text":"the Fund and","page_number":20,"box":{"x":815,"y":589,"width":75,"height":7}},{"id":"f337aa02-9e58-4d57-861d-76c489522840","block_type":"box","text":"Other BlackRock","page_number":20,"box":{"x":802,"y":599,"width":102,"height":7}},{"id":"5bdf1757-d8cd-40e4-9649-4f330dfd160e","block_type":"box","text":"Advised Funds","page_number":20,"box":{"x":809,"y":609,"width":84,"height":7}},{"id":"3146c61d-2c70-49dc-b038-785a071ee674","block_type":"box","text":"1","page_number":20,"box":{"x":893,"y":609,"width":4,"height":4}},{"id":"50d0a83f-70a8-48ea-8e54-ab9eef16c1bc","block_type":"box","text":"Independent Trustees","page_number":20,"box":{"x":70,"y":627,"width":154,"height":11}},{"id":"7359562b-fee2-4a43-8579-8a884a71781c","block_type":"box","text":"Christopher J. 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Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,331 None","page_number":20,"box":{"x":79,"y":686,"width":654,"height":12}},{"id":"f8603a10-21e9-4609-a957-50e8bd8aff75","block_type":"box","text":"$467,500","page_number":20,"box":{"x":817,"y":686,"width":72,"height":12}},{"id":"c216ac75-e9cb-419c-aa0c-241ce7a5e602","block_type":"box","text":"Jeffrey Jarczyk","page_number":20,"box":{"x":78,"y":702,"width":103,"height":11}},{"id":"74ffb5c8-33e6-46be-9828-db1bee991a31","block_type":"box","text":"2","page_number":20,"box":{"x":181,"y":703,"width":4,"height":4}},{"id":"248cf68e-9d93-4057-ae21-4ff86209cf5f","block_type":"box","text":".........................................","page_number":20,"box":{"x":192,"y":710,"width":328,"height":1}},{"id":"2240a829-6142-42f5-ae96-757a149c8795","block_type":"box","text":"$814 None None","page_number":20,"box":{"x":574,"y":702,"width":297,"height":10}},{"id":"ba4968ef-d509-40a8-9d19-70f636639cbb","block_type":"box","text":"Henry R. Keizer","page_number":20,"box":{"x":79,"y":718,"width":109,"height":11}},{"id":"3c9a6bb6-4b1b-4b81-ab7f-54e3c527f48e","block_type":"box","text":"3","page_number":20,"box":{"x":189,"y":718,"width":4,"height":4}},{"id":"f3fad7ad-371a-4133-9903-c60c89a833fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,723 None","page_number":20,"box":{"x":200,"y":717,"width":533,"height":11}},{"id":"d59cf841-902c-4360-9a36-927eaadd2fc8","block_type":"box","text":"$490,000","page_number":20,"box":{"x":817,"y":717,"width":72,"height":11}},{"id":"c137c080-4fea-4dde-8ef4-58a8f0828b37","block_type":"box","text":"Cynthia A. Montgomery","page_number":20,"box":{"x":79,"y":733,"width":164,"height":11}},{"id":"197c92ff-89c5-4244-a502-c6f86e5c3f36","block_type":"box","text":"4","page_number":20,"box":{"x":244,"y":733,"width":4,"height":4}},{"id":"35deccc1-0891-46de-816b-ede761c2c093","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,543 None $490,000","page_number":20,"box":{"x":257,"y":732,"width":632,"height":11}},{"id":"dfd2229d-fdf3-4449-9a50-72478fa7a385","block_type":"box","text":"Donald C. 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Walton","page_number":20,"box":{"x":79,"y":823,"width":111,"height":9}},{"id":"3ab4aae8-5b85-4788-8ff1-a6931ea1b56f","block_type":"box","text":"7","page_number":20,"box":{"x":192,"y":824,"width":3,"height":4}},{"id":"914d4a47-3f80-4dc0-b122-e298e1149da6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,543 None","page_number":20,"box":{"x":200,"y":823,"width":533,"height":11}},{"id":"1ba5e2a1-9c1b-4350-a537-df48018da1b7","block_type":"box","text":"$490,000","page_number":20,"box":{"x":817,"y":823,"width":72,"height":11}},{"id":"15cda00a-febb-43c3-a7fc-e4fa42b3ed64","block_type":"box","text":"Interested Trustees","page_number":20,"box":{"x":70,"y":839,"width":138,"height":8}},{"id":"e52ca3d9-05fc-483d-a9db-7e6da5450bc8","block_type":"box","text":"Rober t Fairbairn . .","page_number":20,"box":{"x":79,"y":854,"width":131,"height":8}},{"id":"de83615e-d15d-42a4-bf4c-96c89335547e","block_type":"box","text":"......................................","page_number":20,"box":{"x":217,"y":861,"width":303,"height":1}},{"id":"014d58c0-d97b-4e20-a298-1b5dfd329d4a","block_type":"box","text":"None None None","page_number":20,"box":{"x":575,"y":854,"width":296,"height":8}},{"id":"1b8dcc93-b217-4e59-a3fd-1aa13674d7c1","block_type":"box","text":"John M. Perlowski","page_number":20,"box":{"x":78,"y":869,"width":127,"height":9}},{"id":"6b7e2c27-9fe8-4469-bd0d-66ffa5998cfe","block_type":"box","text":".......................................","page_number":20,"box":{"x":208,"y":876,"width":312,"height":1}},{"id":"e72c00de-0ad5-4a51-be98-8b9ef47f6c88","block_type":"box","text":"None None None","page_number":20,"box":{"x":575,"y":869,"width":296,"height":9}},{"id":"d7b4dd09-375a-4f61-93b2-add3af2dfccf","block_type":"box","text":"1","page_number":20,"box":{"x":69,"y":893,"width":3,"height":4}},{"id":"76483901-5e03-440a-821b-a12d2bf2fe36","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":20,"box":{"x":94,"y":893,"width":786,"height":9}},{"id":"127721b5-50ea-41a4-bbd1-a71cf1b5f368","block_type":"box","text":"page I-13.","page_number":20,"box":{"x":94,"y":903,"width":55,"height":9}},{"id":"9191fcbe-7233-4f80-9d7e-e71da4e15645","block_type":"box","text":"I-18","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"8b9172e3-9934-4525-8e38-86b9c884601b","block_type":"box","text":"NM1026U-5978647-20/232","page_number":20,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a5581f02-d88a-4b7f-b2f0-86a8db207fb1","block_type":"box","text":"2","page_number":21,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"b132008f-9914-4c50-a521-7877d7eeb199","block_type":"box","text":"Compensation includes $814 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":21,"box":{"x":93,"y":45,"width":726,"height":9}},{"id":"5c91065f-462d-4f54-b407-165c6825d4b3","block_type":"box","text":"3","page_number":21,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"768c47d6-679b-42d2-9c25-b01df0a08755","block_type":"box","text":"Chair of the Audit Committee.","page_number":21,"box":{"x":93,"y":58,"width":168,"height":7}},{"id":"1dba3b1d-960b-4802-980a-5c05eeaae8c3","block_type":"box","text":"4","page_number":21,"box":{"x":68,"y":71,"width":4,"height":3}},{"id":"122d69e6-20e0-4eeb-a488-b41536dc833d","block_type":"box","text":"Chair of the Governance Committee.","page_number":21,"box":{"x":93,"y":70,"width":206,"height":8}},{"id":"e1876e3c-c0af-4617-a6c3-90a853a399c0","block_type":"box","text":"5","page_number":21,"box":{"x":69,"y":83,"width":3,"height":4}},{"id":"302f6242-256d-473b-853a-64ddac100eff","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":21,"box":{"x":93,"y":83,"width":269,"height":9}},{"id":"3277c4ff-ccc1-4c19-8b89-71b9c5ac535b","block_type":"box","text":"6","page_number":21,"box":{"x":69,"y":96,"width":3,"height":3}},{"id":"7589a697-bcbf-4324-bf43-9d74563f4f80","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":21,"box":{"x":93,"y":96,"width":352,"height":8}},{"id":"297a820c-5572-472a-8b49-bb5d20f2f246","block_type":"box","text":"7","page_number":21,"box":{"x":69,"y":108,"width":3,"height":4}},{"id":"8e775bb2-bf3b-4f8f-9edd-de678d75efcd","block_type":"box","text":"Chair of the Compliance Committee.","page_number":21,"box":{"x":93,"y":108,"width":205,"height":9}},{"id":"e6a061a9-9dc9-4ef3-af60-6c4f84f6226d","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":21,"box":{"x":69,"y":137,"width":432,"height":11}},{"id":"da1a4058-126f-452d-855c-967341f430a5","block_type":"box","text":"Management Agreement","page_number":21,"box":{"x":69,"y":167,"width":180,"height":11}},{"id":"4ed37619-f9a2-4262-b034-9236d86dec49","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock pursuant to","page_number":21,"box":{"x":101,"y":189,"width":805,"height":12}},{"id":"a490ff0a-24bd-4a64-8183-5d41333faa13","block_type":"box","text":"which BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":21,"box":{"x":68,"y":205,"width":736,"height":11}},{"id":"86530f27-ace0-4cbc-980d-aefce15c2b0c","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":21,"box":{"x":102,"y":227,"width":762,"height":12}},{"id":"34666d10-a5f9-4410-9e41-7aecc1b5964d","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":21,"box":{"x":69,"y":242,"width":799,"height":12}},{"id":"d3fe9e97-bd31-43ec-9f89-3325685ed707","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":21,"box":{"x":68,"y":258,"width":726,"height":11}},{"id":"39f844fc-2cb6-4db1-99f8-339b24a80c6e","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":21,"box":{"x":69,"y":273,"width":797,"height":11}},{"id":"a177b89d-15bf-4a4f-a462-642d43d9a01c","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":21,"box":{"x":69,"y":288,"width":789,"height":11}},{"id":"3df30cd0-cc88-4372-a569-3bcddb2d4f0a","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":21,"box":{"x":70,"y":303,"width":810,"height":11}},{"id":"112ca5e1-661a-471c-9115-6e89fd8bcbe0","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":21,"box":{"x":69,"y":318,"width":827,"height":11}},{"id":"ce265961-5322-40f5-822b-076358db003c","block_type":"box","text":"Fund.","page_number":21,"box":{"x":70,"y":333,"width":36,"height":9}},{"id":"abc1b58a-77af-426b-b4b4-c863e048d1a2","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":21,"box":{"x":102,"y":356,"width":784,"height":11}},{"id":"6f2f9f8a-f605-4d56-b9c5-df764f324264","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":21,"box":{"x":70,"y":371,"width":838,"height":11}},{"id":"ccbed66d-dd05-4c73-b266-cf9a83b09383","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":21,"box":{"x":70,"y":386,"width":810,"height":11}},{"id":"38bb036c-c275-4a26-8862-13674ad6bf25","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":21,"box":{"x":70,"y":401,"width":779,"height":11}},{"id":"52039b4c-885b-487c-9aff-e9d3028bba57","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":21,"box":{"x":70,"y":417,"width":827,"height":11}},{"id":"bf078470-d90c-49c2-a3f8-c1ced6fe91f0","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":21,"box":{"x":69,"y":432,"width":486,"height":11}},{"id":"8a01498f-e41e-4f73-b16f-fae7783bd271","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust to BlackRock, on","page_number":21,"box":{"x":101,"y":454,"width":765,"height":11}},{"id":"02769252-0cff-4021-bbc8-38cd1e2e8b9e","block_type":"box","text":"behalf of the Fund, and the amounts waived and reimbursed, for the periods shown.","page_number":21,"box":{"x":69,"y":469,"width":598,"height":11}},{"id":"4d801f01-c942-47bd-8782-6c9c8cfd964b","block_type":"box","text":"Fees Paid","page_number":21,"box":{"x":723,"y":498,"width":56,"height":7}},{"id":"adb3dbb3-5f06-4b50-83e9-56528ba25dae","block_type":"box","text":"to BlackRock","page_number":21,"box":{"x":711,"y":508,"width":79,"height":7}},{"id":"dcb48009-db3d-49e8-a7c4-2fb00ac7308a","block_type":"box","text":"Fees Waived","page_number":21,"box":{"x":833,"y":498,"width":72,"height":7}},{"id":"4a33a201-0828-4268-ad10-efe97e62874b","block_type":"box","text":"by BlackRock","page_number":21,"box":{"x":830,"y":508,"width":80,"height":8}},{"id":"c5ea2309-7d9e-4f99-b0fb-44db23effbcd","block_type":"box","text":"Fiscal Year Ended May 31, 2026. .","page_number":21,"box":{"x":70,"y":525,"width":242,"height":11}},{"id":"82f253a7-8561-487e-b4f8-784dba5e48c1","block_type":"box","text":"............................................","page_number":21,"box":{"x":319,"y":533,"width":352,"height":1}},{"id":"824755c6-64f4-4fdc-aa15-b010ef92b155","block_type":"box","text":"$42,581,719 $ 38,166","page_number":21,"box":{"x":703,"y":525,"width":202,"height":11}},{"id":"fbc7c473-5f4c-4fb2-be3e-f103904a640e","block_type":"box","text":"Fiscal Year Ended May 31, 2025. .","page_number":21,"box":{"x":70,"y":540,"width":242,"height":12}},{"id":"69b701fd-820c-495e-9d45-867593316fb9","block_type":"box","text":"............................................","page_number":21,"box":{"x":319,"y":548,"width":352,"height":1}},{"id":"89dfc898-ce2d-477d-8277-618ccdcf09c3","block_type":"box","text":"$52,334,214 $126,907","page_number":21,"box":{"x":703,"y":540,"width":202,"height":11}},{"id":"a5fa6e71-e9ad-4ed6-9ca5-23ab22b58414","block_type":"box","text":"Fiscal Year Ended May 31, 2024. .","page_number":21,"box":{"x":70,"y":556,"width":242,"height":11}},{"id":"0055d0f8-2196-407e-a99e-09e4f9bf88da","block_type":"box","text":"............................................","page_number":21,"box":{"x":319,"y":563,"width":352,"height":1}},{"id":"eb6abd32-35de-46b8-af10-3e3d5f3e489c","block_type":"box","text":"$55,768,956 $101,560","page_number":21,"box":{"x":703,"y":555,"width":202,"height":11}},{"id":"c2cae502-048a-4132-8613-c459f765dee5","block_type":"box","text":"Administration Agreement","page_number":21,"box":{"x":68,"y":587,"width":191,"height":11}},{"id":"f21c1b5c-dcc0-44a0-b6d2-d611218ac4a5","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":21,"box":{"x":102,"y":610,"width":711,"height":11}},{"id":"16415d7f-9c59-4c36-afce-587fe9dbd6f8","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":21,"box":{"x":69,"y":625,"width":838,"height":11}},{"id":"daa009c6-2d2b-4c2a-878f-8de23a768308","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":21,"box":{"x":68,"y":640,"width":830,"height":11}},{"id":"54c86f58-fcfd-4ff5-98ac-1803f0134179","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":21,"box":{"x":70,"y":655,"width":813,"height":11}},{"id":"aa857be6-6850-48f1-8663-40a322339641","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":21,"box":{"x":69,"y":670,"width":837,"height":11}},{"id":"6b15884d-a9f9-47ac-b0dd-98ea5c2fd911","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":21,"box":{"x":68,"y":685,"width":836,"height":12}},{"id":"37318756-9636-45a8-abf1-1415ac253434","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":21,"box":{"x":68,"y":700,"width":785,"height":12}},{"id":"48f0bac3-efb8-48ca-9953-496e34349044","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":21,"box":{"x":69,"y":715,"width":765,"height":12}},{"id":"0e670534-0e1a-4503-b4e4-063b911e1c6c","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":21,"box":{"x":70,"y":731,"width":819,"height":11}},{"id":"2f951fd6-e5a7-4773-aafb-d96ea86dc7ab","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":21,"box":{"x":69,"y":746,"width":818,"height":11}},{"id":"76fcc3f4-d669-4189-bad9-015008cea5d9","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":21,"box":{"x":68,"y":761,"width":840,"height":11}},{"id":"d4d41d8f-2d62-4461-a580-36a4d2abe9b5","block_type":"box","text":"reimburse the Fund for expenses.","page_number":21,"box":{"x":69,"y":776,"width":238,"height":11}},{"id":"7e308b05-a605-4a53-a266-3aa1ec8acb2c","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":21,"box":{"x":102,"y":799,"width":802,"height":11}},{"id":"2c9e7f13-73a7-4c28-b4a8-838ea2bc1e13","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":21,"box":{"x":69,"y":813,"width":830,"height":12}},{"id":"32c33550-b72a-4111-ad4e-2272902a56fa","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":21,"box":{"x":69,"y":828,"width":788,"height":12}},{"id":"44f64fed-e33e-4d71-b131-dc86919ce3e4","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":21,"box":{"x":69,"y":843,"width":785,"height":12}},{"id":"e38560fe-56bf-4b94-aee7-574aa9692ee8","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":21,"box":{"x":69,"y":858,"width":816,"height":12}},{"id":"c5aeb1ff-849d-4607-b33b-b6edde55be88","block_type":"box","text":"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":21,"box":{"x":69,"y":874,"width":805,"height":12}},{"id":"5924b864-edae-4b41-a8d3-5a3a93c2a09e","block_type":"box","text":"shares of the Fund.","page_number":21,"box":{"x":69,"y":889,"width":137,"height":9}},{"id":"3a620a55-80c3-49df-be4a-933a723a825a","block_type":"box","text":"I-19","page_number":21,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"413a91a5-a47b-4c72-862e-5af4b8da653b","block_type":"box","text":"NM1026U-5978647-21/232","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"671c5c00-0c33-43eb-a466-916cf71b1813","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":22,"box":{"x":101,"y":45,"width":793,"height":11}},{"id":"74938b37-d7bf-40d1-90e0-bfb9d4c296d4","block_type":"box","text":"the Administrator, and the amounts waived, for the periods shown.","page_number":22,"box":{"x":68,"y":60,"width":474,"height":11}},{"id":"da8ecdf3-86e6-4e74-9798-e2c79af94c06","block_type":"box","text":"Fees Paid","page_number":22,"box":{"x":729,"y":88,"width":56,"height":7}},{"id":"2acb22fe-4486-4e49-863b-86dfbe8fe656","block_type":"box","text":"to the","page_number":22,"box":{"x":740,"y":98,"width":34,"height":7}},{"id":"500a9d4c-9f5d-4672-a260-710f275bfc41","block_type":"box","text":"Administrator","page_number":22,"box":{"x":717,"y":108,"width":79,"height":7}},{"id":"dcb4d9b1-1133-4747-b8c2-23a6139dcaf2","block_type":"box","text":"Fees Waived","page_number":22,"box":{"x":834,"y":88,"width":72,"height":7}},{"id":"94be130e-4c21-4574-8928-912ee5eae980","block_type":"box","text":"by the","page_number":22,"box":{"x":853,"y":98,"width":35,"height":9}},{"id":"4566ecb8-418e-45bb-8be6-3f62054774e7","block_type":"box","text":"Administrator","page_number":22,"box":{"x":830,"y":108,"width":79,"height":7}},{"id":"501d41e1-ec0f-457b-a2d4-ee20f7f9d174","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":22,"box":{"x":70,"y":126,"width":253,"height":11}},{"id":"13101456-c338-4e9a-817a-80c15ef0343f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,","page_number":22,"box":{"x":330,"y":125,"width":406,"height":11}},{"id":"58f2d446-e308-468d-8fe0-01de981f70ba","block_type":"box","text":"486,403 $0","page_number":22,"box":{"x":738,"y":125,"width":141,"height":11}},{"id":"161244dc-db15-4c59-abe3-56fe8d60150a","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":22,"box":{"x":70,"y":141,"width":253,"height":11}},{"id":"413ab96b-d8b9-4d5a-ad34-a1c6678742a4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,","page_number":22,"box":{"x":330,"y":140,"width":406,"height":12}},{"id":"f74dff0b-707c-49ec-b312-c49e98a44e19","block_type":"box","text":"274,050 $0","page_number":22,"box":{"x":738,"y":140,"width":141,"height":12}},{"id":"d4e49f93-9886-4172-9ee8-2c4399f5b302","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":22,"box":{"x":70,"y":156,"width":253,"height":11}},{"id":"7a9bbd69-30fe-4c32-9312-968d1f10375a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,","page_number":22,"box":{"x":330,"y":155,"width":406,"height":12}},{"id":"f477a6d0-e67c-4462-ae5f-5b184836210a","block_type":"box","text":"551,483 $0","page_number":22,"box":{"x":738,"y":155,"width":141,"height":12}},{"id":"24fa6ef0-0086-4194-9922-03e63c26e7b4","block_type":"box","text":"The Trust and its service providers may engage third par ty plan administrators who provide trustee,","page_number":22,"box":{"x":101,"y":180,"width":708,"height":11}},{"id":"e80426b8-a68e-4ce3-b03f-08362ea3cd30","block_type":"box","text":"administrative and recordkeeping services for cer tain employee benefit, profit-sharing and retirement plans as agents","page_number":22,"box":{"x":69,"y":195,"width":838,"height":11}},{"id":"daee9305-3d19-4870-979c-7aa321eccc87","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":22,"box":{"x":68,"y":210,"width":800,"height":12}},{"id":"f5f9e8ac-2e9a-4355-abcc-7cd473d40865","block_type":"box","text":"shares of the Trust.","page_number":22,"box":{"x":69,"y":225,"width":138,"height":9}},{"id":"30bee899-1afc-4d66-b51d-6b50643ce338","block_type":"box","text":"In addition, pursuant to a shareholders’ administrative services agreement, BlackRock provides cer tain","page_number":22,"box":{"x":102,"y":248,"width":736,"height":11}},{"id":"eb047145-62d6-45b8-a506-bdb7b41591fa","block_type":"box","text":"shareholder liaison services in connection with the Trust’s investor service center. The Trust, on behalf of the Fund,","page_number":22,"box":{"x":69,"y":263,"width":824,"height":11}},{"id":"78540b55-214b-42a6-a7aa-69b5d4c9239b","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":22,"box":{"x":69,"y":278,"width":787,"height":12}},{"id":"442c75c7-5002-48c5-b2cc-602922d3aa08","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":22,"box":{"x":69,"y":293,"width":531,"height":12}},{"id":"5e43d4cf-11e5-4654-9b62-864d3f201b91","block_type":"box","text":"For the periods shown, the Trust, on behalf of the Fund, reimbursed BlackRock for shareholder liaison services","page_number":22,"box":{"x":102,"y":316,"width":790,"height":11}},{"id":"c15c1510-b2df-4c0d-896f-52522adb2f9d","block_type":"box","text":"pursuant to such agreement in the amounts set for th below.","page_number":22,"box":{"x":70,"y":331,"width":427,"height":12}},{"id":"95f467b1-453a-47a9-ad9f-72ed9e9ab454","block_type":"box","text":"Fees Paid","page_number":22,"box":{"x":732,"y":360,"width":56,"height":7}},{"id":"c7b14922-8940-40b6-9255-78c8f7b20b85","block_type":"box","text":"to BlackRock","page_number":22,"box":{"x":720,"y":370,"width":80,"height":7}},{"id":"f6fce1b5-97cf-40c9-b80c-3122509cda7c","block_type":"box","text":"Fees Waived","page_number":22,"box":{"x":833,"y":360,"width":72,"height":7}},{"id":"7b8c31b0-cc2f-46b7-9a8a-05ccec85f3d7","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":830,"y":370,"width":80,"height":8}},{"id":"0ac85086-e1d6-41b8-9b2e-20fac7838868","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":22,"box":{"x":70,"y":418,"width":457,"height":11}},{"id":"6cc0e9cd-e235-4087-aecc-48fac062376c","block_type":"box","text":"....................","page_number":22,"box":{"x":533,"y":425,"width":157,"height":1}},{"id":"6af68d38-6c8e-4b70-905d-68fa99156768","block_type":"box","text":"$160,085 $0","page_number":22,"box":{"x":724,"y":417,"width":154,"height":11}},{"id":"f4892d06-28be-42a4-93c7-9a3ad65cc90c","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":22,"box":{"x":69,"y":449,"width":335,"height":11}},{"id":"177f6285-1875-4492-858d-f8622146973c","block_type":"box","text":"Erin Xie, PhD and Xiang Liu, PhD are the por tfolio managers and are jointly and primarily responsible for the day","page_number":22,"box":{"x":102,"y":472,"width":799,"height":11}},{"id":"15c53f27-12c3-49a6-b9a6-b160c8c04071","block_type":"box","text":"to-day management of the Fund.","page_number":22,"box":{"x":68,"y":487,"width":229,"height":11}},{"id":"cba411eb-e6a6-47a2-b18d-e72cf17063a4","block_type":"box","text":"Other Funds and Accounts Managed","page_number":22,"box":{"x":70,"y":517,"width":265,"height":11}},{"id":"78b395cf-f183-47fb-aaeb-7650aedc292f","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the Fund’s","page_number":22,"box":{"x":101,"y":540,"width":806,"height":11}},{"id":"d0ade9b4-fa3b-46c5-82fd-10e4e4a32878","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of May 31, 2026.","page_number":22,"box":{"x":70,"y":555,"width":755,"height":11}},{"id":"0befae17-a0ff-49d1-bedb-6c13abdfcbec","block_type":"box","text":"Number of Other Accounts Managed","page_number":22,"box":{"x":375,"y":583,"width":211,"height":9}},{"id":"6e21189d-314e-4693-ac64-67301e25553e","block_type":"box","text":"and Assets by Account Type","page_number":22,"box":{"x":398,"y":593,"width":165,"height":9}},{"id":"bf21eafd-82e4-4aa9-b63c-b72c1de5f421","block_type":"box","text":"Number of Other Accounts and Assets","page_number":22,"box":{"x":656,"y":583,"width":222,"height":7}},{"id":"31df89ee-adc2-441c-a74a-391486b7ef5c","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":22,"box":{"x":634,"y":593,"width":265,"height":9}},{"id":"817eeb2d-6bc6-41a9-b853-f453ed3cbb24","block_type":"box","text":"Name of Portfolio 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Pooled","page_number":22,"box":{"x":725,"y":616,"width":75,"height":7}},{"id":"30e2ef32-4a04-4109-9e8b-4a43e162ed41","block_type":"box","text":"Investment","page_number":22,"box":{"x":731,"y":626,"width":64,"height":7}},{"id":"a86bc42a-ba81-4305-a510-93d5384b1313","block_type":"box","text":"Vehicles","page_number":22,"box":{"x":738,"y":636,"width":49,"height":7}},{"id":"04b4fe02-2c4b-43ae-a646-aa0c5d9f1c9d","block_type":"box","text":"Other","page_number":22,"box":{"x":847,"y":626,"width":31,"height":7}},{"id":"20965e74-0bc8-491e-8bb6-74279b0c5366","block_type":"box","text":"Accounts","page_number":22,"box":{"x":835,"y":636,"width":54,"height":7}},{"id":"f0728fad-dc4b-42c3-b47a-bd455f262a82","block_type":"box","text":"Xiang Liu, PhD 4 9 2 0 1 1","page_number":22,"box":{"x":73,"y":650,"width":793,"height":9}},{"id":"18026814-c26e-46d9-a195-81f6ea7f0832","block_type":"box","text":"$1.91 Billion $12.56 Billion $2.85 Billion $0 $23.23 Million $2.45 Billion","page_number":22,"box":{"x":347,"y":662,"width":551,"height":8}},{"id":"d08a27b5-51db-4bb5-a509-5c9fb5eae92d","block_type":"box","text":"Erin Xie, PhD 4 11 2 0 1 1","page_number":22,"box":{"x":74,"y":675,"width":792,"height":8}},{"id":"ac4f1715-3f02-4c2b-b4c1-c847d61fad88","block_type":"box","text":"$1.91 Billion $12.56 Billion $2.85 Billion $0 $23.23 Million $2.45 Billion","page_number":22,"box":{"x":347,"y":687,"width":551,"height":9}},{"id":"210d33ae-d3d9-48c5-9f3b-075af21e7dbf","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":22,"box":{"x":69,"y":722,"width":304,"height":11}},{"id":"4562ee3c-c318-4353-bc29-cfe7684eaf46","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":22,"box":{"x":101,"y":744,"width":656,"height":12}},{"id":"70c23869-45ce-4842-990d-27d208e8590c","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":22,"box":{"x":102,"y":767,"width":774,"height":11}},{"id":"d434f51c-5ebb-4ec7-90aa-9a383ddebbdd","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":22,"box":{"x":70,"y":782,"width":837,"height":12}},{"id":"422e6bd8-74e3-456f-9c13-a959f7f02fa3","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":22,"box":{"x":69,"y":797,"width":823,"height":12}},{"id":"f669ccd9-9384-4566-9000-be3385766f6e","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":22,"box":{"x":69,"y":812,"width":799,"height":12}},{"id":"33e9acf2-ed43-4414-bcc0-a631efe0035a","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":22,"box":{"x":70,"y":828,"width":670,"height":11}},{"id":"56991f5c-7f74-41a6-b96f-eb2dec3bdf5f","block_type":"box","text":"Base Compensation.","page_number":22,"box":{"x":102,"y":850,"width":148,"height":11}},{"id":"1cf0b24d-cf1c-4f46-b7b8-8004b4f238fd","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":22,"box":{"x":257,"y":850,"width":640,"height":12}},{"id":"e23aabed-3eb7-466f-ae4a-59f460d7cedf","block_type":"box","text":"firm.","page_number":22,"box":{"x":68,"y":865,"width":32,"height":9}},{"id":"d9824796-de66-4219-a905-585ffa0b8aec","block_type":"box","text":"I-20","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e4672a6b-6bb1-4eaa-85e0-1ed0b051a840","block_type":"box","text":"NM1026U-5978647-22/232","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d8be7abf-7e9a-4645-9c8b-fb98267a1dce","block_type":"box","text":"Discretionary Incentive Compensation","page_number":23,"box":{"x":69,"y":45,"width":277,"height":11}},{"id":"5ea0f074-5f60-4d34-9027-d3d23c05d6b9","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities por tfolio managers is based on a","page_number":23,"box":{"x":102,"y":67,"width":763,"height":12}},{"id":"f322d8a0-4637-47bc-ac1e-a962ba878409","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic por tfolio manager compensation program is based on team","page_number":23,"box":{"x":68,"y":82,"width":832,"height":12}},{"id":"6f525d45-b06f-435a-b845-63ed959de035","block_type":"box","text":"revenue and pre-tax investment per formance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":23,"box":{"x":69,"y":98,"width":815,"height":11}},{"id":"3315045e-febc-465b-ae31-d5fad7b3b86a","block_type":"box","text":"per formance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":23,"box":{"x":70,"y":113,"width":757,"height":11}},{"id":"36d28e3b-1c87-4f71-93d1-a4a42045a03b","block_type":"box","text":"benchmarks against which the per formance of the Fund or other accounts managed by the por tfolio managers are","page_number":23,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"01e6d377-fb04-42a7-b35a-e6345d512153","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":23,"box":{"x":69,"y":143,"width":780,"height":11}},{"id":"ae9fe621-3df5-4d29-b7ef-00f4408099f0","block_type":"box","text":"per formance of the Fund and other accounts managed by each por tfolio management team is compared and the","page_number":23,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"a062f691-b621-4844-a26b-f0b2850eb804","block_type":"box","text":"period of time over which per formance is evaluated. With respect to these por tfolio managers such benchmarks for","page_number":23,"box":{"x":70,"y":173,"width":823,"height":11}},{"id":"ad8cce6d-1809-4c55-970e-53741ae6c25c","block_type":"box","text":"the Fund and other accounts are: FTSE 3-month T-bill Index; MSCI ACWI 25% Call Overwrite Index; MSCI All Country","page_number":23,"box":{"x":68,"y":188,"width":822,"height":11}},{"id":"30410104-1da0-4cd1-8ee0-d11fbacb46ea","block_type":"box","text":"World Index (Net Total Return); MSCI WRLD HealthCare ND; Russell 3000 HealthCare Index.","page_number":23,"box":{"x":68,"y":203,"width":655,"height":11}},{"id":"1d52f980-9e01-40c9-8e25-b094abe56021","block_type":"box","text":"A smaller element of por tfolio manager discretionary compensation may include consideration of: financial","page_number":23,"box":{"x":101,"y":226,"width":759,"height":11}},{"id":"eb53e684-2f1d-4bc7-b1e2-0ed8de3d1f8f","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":23,"box":{"x":69,"y":241,"width":798,"height":11}},{"id":"a95fff51-c4c8-4d46-a135-d61d8a88785b","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":23,"box":{"x":69,"y":257,"width":814,"height":11}},{"id":"e2c2c2e0-7234-4bca-b1e9-debfea94fcf7","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":23,"box":{"x":68,"y":271,"width":798,"height":12}},{"id":"fccc4a75-bc96-4995-ae7b-4ea82de92102","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":23,"box":{"x":102,"y":294,"width":389,"height":11}},{"id":"a0b15e79-b2f3-4756-8b3a-d800578af969","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":23,"box":{"x":499,"y":294,"width":383,"height":11}},{"id":"21e1013f-7f73-4ab4-9b71-454a023bab55","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":23,"box":{"x":70,"y":309,"width":815,"height":11}},{"id":"e05d7880-050e-4599-9c5f-13610d208ece","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":23,"box":{"x":68,"y":324,"width":522,"height":11}},{"id":"aeeffef9-5ab0-4a92-90a2-40cd3e706cef","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":23,"box":{"x":102,"y":347,"width":760,"height":11}},{"id":"6401f8f1-2587-4b84-9238-f182fb043bf0","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":23,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"ae6ac318-40eb-412a-9001-838ceed2de5c","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":23,"box":{"x":69,"y":377,"width":805,"height":12}},{"id":"f5ffb213-9796-4e83-909e-a4e46f641e7b","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":23,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"39d98260-3ec8-4a6d-897c-6c7685bfadbf","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":23,"box":{"x":68,"y":407,"width":839,"height":12}},{"id":"f2e149f0-96c0-4313-a14e-cc67048760a0","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":23,"box":{"x":69,"y":423,"width":802,"height":11}},{"id":"49ce40ff-d255-45fe-9b39-419fe08e3333","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":23,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"650e0843-dd31-4ed4-8302-7d6a21c517d3","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":23,"box":{"x":70,"y":453,"width":801,"height":11}},{"id":"a77a6c2f-9b32-41b3-b9da-ce9eac413402","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":23,"box":{"x":70,"y":468,"width":831,"height":11}},{"id":"3bba80ac-8719-48ac-a2ba-8602532c2c3d","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":23,"box":{"x":69,"y":483,"width":479,"height":11}},{"id":"11be62a4-6d21-4203-8e41-5ad875b4555d","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":23,"box":{"x":102,"y":506,"width":785,"height":11}},{"id":"f76a94b1-b903-4765-b457-a9a2da3d50d3","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":23,"box":{"x":68,"y":521,"width":836,"height":11}},{"id":"7bdb8047-18e8-4440-ab54-db424b0881ac","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":23,"box":{"x":68,"y":536,"width":821,"height":11}},{"id":"8bdfa24d-df73-4752-a3df-f4acf6b5d167","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":23,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"4d56f573-1ce4-429a-b0b4-6e88e292ca08","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":23,"box":{"x":70,"y":566,"width":835,"height":11}},{"id":"067f2e58-1631-4cac-b334-8f07039ad54e","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":23,"box":{"x":69,"y":581,"width":414,"height":12}},{"id":"7fa416f1-1372-4bb4-a296-9efaa82477ef","block_type":"box","text":"Other Compensation Benefits.","page_number":23,"box":{"x":101,"y":604,"width":218,"height":11}},{"id":"bfe411e5-7d24-4b3d-ae83-b817a5307c45","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":23,"box":{"x":327,"y":604,"width":552,"height":11}},{"id":"2286fc50-d594-4b1c-9bb0-ef2a5c1cc0b3","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":23,"box":{"x":69,"y":619,"width":582,"height":11}},{"id":"435fb00c-f858-4e7e-9f70-069cc56e2c4b","block_type":"box","text":"Incentive Savings Plans","page_number":23,"box":{"x":102,"y":642,"width":167,"height":11}},{"id":"2bc269de-d63b-4526-984d-72a8af755d10","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":23,"box":{"x":274,"y":642,"width":614,"height":11}},{"id":"e53e9d99-44fc-471d-a30e-05466cd21d33","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":23,"box":{"x":69,"y":657,"width":831,"height":11}},{"id":"aad90675-3b4c-428d-9a51-20cc0a88dd5b","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":23,"box":{"x":70,"y":672,"width":785,"height":11}},{"id":"b1d56cf7-3161-4df3-804c-a507ca6ac4a2","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":23,"box":{"x":69,"y":687,"width":830,"height":11}},{"id":"da1fa852-c013-44c3-94aa-592f0dcff817","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":23,"box":{"x":69,"y":702,"width":799,"height":12}},{"id":"85867405-4116-4e68-98bd-5fe4b36b0d99","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":23,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"1119f335-4536-4810-8199-5e52251c738b","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":23,"box":{"x":69,"y":732,"width":798,"height":12}},{"id":"4691a988-83a9-4570-a2d8-2adb59475c43","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":23,"box":{"x":70,"y":748,"width":809,"height":11}},{"id":"c9e990ca-7178-485a-83c1-924f3122c943","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":23,"box":{"x":68,"y":763,"width":793,"height":11}},{"id":"927b8729-3df7-46cd-bb98-57ef6eede1fd","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":23,"box":{"x":70,"y":778,"width":832,"height":11}},{"id":"0f1c24dc-8919-49c2-a9f9-edcffc107501","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":23,"box":{"x":68,"y":793,"width":805,"height":11}},{"id":"1d091ffd-85f8-44cd-a02a-9d50be783955","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":23,"box":{"x":69,"y":807,"width":808,"height":12}},{"id":"03a3a503-c430-4e15-92a0-6766171fde43","block_type":"box","text":"par ticipate in these plans.","page_number":23,"box":{"x":70,"y":823,"width":185,"height":11}},{"id":"f98926df-1ee0-4cca-820f-185c2011274e","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"6ed79402-e894-4478-aa9f-47902c7d2e33","block_type":"box","text":"NM1026U-5978647-23/232","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"44e0a3c8-4c3d-456d-9235-ae15a43d79d9","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":24,"box":{"x":69,"y":45,"width":268,"height":11}},{"id":"459bb0f1-ac25-44d4-a793-965a9290179e","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":24,"box":{"x":101,"y":67,"width":731,"height":12}},{"id":"6d8cc9da-14b9-432e-9271-5deee1e7fab1","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":24,"box":{"x":69,"y":82,"width":519,"height":12}},{"id":"0cb81512-b589-47c5-b245-077ff17f350f","block_type":"box","text":"Portfolio Manager","page_number":24,"box":{"x":69,"y":121,"width":105,"height":9}},{"id":"388d277f-e50e-4627-b51c-939cb6473db3","block_type":"box","text":"Dollar Range of Equity","page_number":24,"box":{"x":759,"y":111,"width":129,"height":9}},{"id":"2bb0e1c3-f0d7-4335-9c97-0342592899d3","block_type":"box","text":"Securities Beneficially Owned","page_number":24,"box":{"x":736,"y":121,"width":173,"height":9}},{"id":"3260a09c-d1bc-48e5-8809-2f045416f6b9","block_type":"box","text":"Erin Xie, PhD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":24,"box":{"x":70,"y":138,"width":750,"height":11}},{"id":"4f4426b2-b764-4f3c-a360-6dce0a83cabd","block_type":"box","text":"000,000","page_number":24,"box":{"x":822,"y":139,"width":63,"height":10}},{"id":"82b5c749-e68f-41fe-a6bf-45834b1e8227","block_type":"box","text":"Xiang Liu, PhD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":68,"y":154,"width":637,"height":11}},{"id":"0df95f32-6ea3-4982-adc5-ce0146c8b32f","block_type":"box","text":"$100,001 - $500,000","page_number":24,"box":{"x":744,"y":153,"width":158,"height":11}},{"id":"779a4852-375c-4908-b514-e674f88cc65a","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":24,"box":{"x":69,"y":185,"width":403,"height":11}},{"id":"2e65a123-67e8-4259-a2d8-099c3c4302df","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":24,"box":{"x":102,"y":208,"width":727,"height":11}},{"id":"9b658d28-699d-4561-9319-77579d2b4f4a","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":24,"box":{"x":70,"y":223,"width":814,"height":11}},{"id":"6f137017-4554-4e76-a0b2-af44942e046e","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":24,"box":{"x":70,"y":238,"width":837,"height":11}},{"id":"681bcd27-4659-4a9d-b479-b07258aebc6e","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":24,"box":{"x":70,"y":253,"width":810,"height":11}},{"id":"7fc5068c-62f5-413b-9d67-ea70e8abf2ca","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":24,"box":{"x":69,"y":268,"width":782,"height":11}},{"id":"6c7f71a6-0627-41c6-86d2-ac83705ee034","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":24,"box":{"x":69,"y":284,"width":830,"height":11}},{"id":"a07c0a84-6ab8-4b3b-ba52-67e43fc1bca8","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":24,"box":{"x":69,"y":299,"width":828,"height":11}},{"id":"3883da76-d23f-448b-8301-b72003d74db0","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":24,"box":{"x":68,"y":314,"width":834,"height":11}},{"id":"8218e468-48d7-46fd-b7c7-a9bf66df9095","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":24,"box":{"x":70,"y":329,"width":777,"height":11}},{"id":"ebf5fdb2-df2e-49f3-83ca-cce1b6c1c5a5","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":24,"box":{"x":70,"y":344,"width":821,"height":11}},{"id":"52070bf0-3125-4adc-916f-c80c57420caa","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":24,"box":{"x":69,"y":359,"width":819,"height":11}},{"id":"5ea20bdb-5359-43d5-991b-6d328834408b","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":24,"box":{"x":69,"y":374,"width":832,"height":11}},{"id":"02ca2432-e9fd-4b94-9780-8a0be3e2552e","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":24,"box":{"x":68,"y":389,"width":804,"height":11}},{"id":"1bd71e3c-c4bf-4f33-98e7-c07a4ecd53ad","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":24,"box":{"x":69,"y":404,"width":760,"height":12}},{"id":"5f74bc19-7922-404b-a332-de37e4383706","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":24,"box":{"x":69,"y":419,"width":834,"height":12}},{"id":"79f52f8c-f701-4424-9d50-bb4617464f31","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":24,"box":{"x":69,"y":435,"width":836,"height":11}},{"id":"5a00aa56-3b0a-4015-8e14-e6756b4ed52c","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":24,"box":{"x":69,"y":450,"width":822,"height":11}},{"id":"0130263e-ce4f-4e98-8da9-21daff0f5034","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":24,"box":{"x":70,"y":465,"width":835,"height":11}},{"id":"aee8d900-c1d4-4615-a5cb-5f34e62b2967","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Drs. Xie and Liu may be managing hedge","page_number":24,"box":{"x":69,"y":480,"width":840,"height":11}},{"id":"ac3f5d59-1fe0-4cc9-83a3-dcf0a201c243","block_type":"box","text":"fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only accounts, subject to","page_number":24,"box":{"x":68,"y":495,"width":839,"height":11}},{"id":"1fe92e4a-335f-4940-890b-cdfab7b4941e","block_type":"box","text":"incentive fees. Drs. Xie and Liu may therefore be entitled to receive a por tion of any incentive fees earned on such","page_number":24,"box":{"x":70,"y":510,"width":815,"height":11}},{"id":"cbc7a12e-4624-4eeb-92a5-cfb86091c0e5","block_type":"box","text":"accounts.","page_number":24,"box":{"x":69,"y":526,"width":67,"height":8}},{"id":"1a30c190-d95f-4b7d-912a-2c2a7643f3c9","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":24,"box":{"x":101,"y":548,"width":788,"height":11}},{"id":"cf54cd1f-b8df-45ac-801f-67e63e171fd6","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":24,"box":{"x":70,"y":563,"width":839,"height":11}},{"id":"77b6bc3f-ca52-47fd-b022-e86b21d3f4f9","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":24,"box":{"x":68,"y":578,"width":823,"height":11}},{"id":"408e9fa5-cbc2-4e28-883f-0966a0a92ae0","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":24,"box":{"x":68,"y":593,"width":812,"height":12}},{"id":"2268325b-a959-4246-8742-9940625ec4c8","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":24,"box":{"x":69,"y":608,"width":777,"height":12}},{"id":"ab16a9b8-fe11-441e-b95e-c36e23eaaec1","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":24,"box":{"x":70,"y":624,"width":826,"height":10}},{"id":"bbb9a6e5-64dc-4428-9e11-138d4015fd26","block_type":"box","text":"Accounting Services","page_number":24,"box":{"x":68,"y":654,"width":150,"height":11}},{"id":"9851dc53-db81-41d2-8d9a-8a9296e026bf","block_type":"box","text":"The Bank of New York Mellon serves as the accounting services provider for the Fund (the “Accounting Agent”).","page_number":24,"box":{"x":101,"y":676,"width":793,"height":12}},{"id":"7731330c-e8d0-4b71-bef8-b58facc4b6ff","block_type":"box","text":"The Accounting Agent records investment, capital share and income and expense activities; verifies and transmits","page_number":24,"box":{"x":68,"y":692,"width":813,"height":11}},{"id":"8f76074b-91bd-4ba0-ad42-10d25f448404","block_type":"box","text":"trade tickets; maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the","page_number":24,"box":{"x":68,"y":707,"width":809,"height":11}},{"id":"a6812734-7459-4a91-a2f5-dc2bb3f80452","block_type":"box","text":"Fund’s custodian; repor ts cash balances to BlackRock; prepares cer tain financial statements; calculates expenses,","page_number":24,"box":{"x":70,"y":722,"width":825,"height":11}},{"id":"4d91b236-bfff-4c95-a75e-7702a8d8c912","block_type":"box","text":"gains, losses and income; controls disbursements; works with independent pricing sources; and computes and","page_number":24,"box":{"x":68,"y":737,"width":793,"height":11}},{"id":"884cfb78-f155-4985-9ad9-3ccf660d7309","block_type":"box","text":"repor ts net asset value. 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The Custodian, among other","page_number":25,"box":{"x":68,"y":82,"width":732,"height":12}},{"id":"b2dafe62-14f7-4463-a2fc-f5965b85ad78","block_type":"box","text":"responsibilities, maintains a custody account or accounts in the name of the Fund, receives and delivers all assets","page_number":25,"box":{"x":69,"y":98,"width":820,"height":11}},{"id":"4fb35146-2e74-401d-b3e1-38f9e621c26c","block_type":"box","text":"for the Fund upon purchase and upon sale or maturity, and collects and receives all income and other payments and","page_number":25,"box":{"x":68,"y":113,"width":830,"height":11}},{"id":"e59f4294-b96a-4fbb-97b7-91261c791302","block_type":"box","text":"distributions on account of the assets of the Fund.","page_number":25,"box":{"x":69,"y":128,"width":359,"height":9}},{"id":"ba792cb6-367c-43d7-9754-7fc673f1c18a","block_type":"box","text":"Transfer Agent","page_number":25,"box":{"x":68,"y":158,"width":107,"height":11}},{"id":"9867b379-d0cf-44d1-b5c8-b66df2a02803","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":25,"box":{"x":102,"y":181,"width":764,"height":11}},{"id":"79996caf-4704-4eb4-8840-af50298ed720","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":25,"box":{"x":68,"y":196,"width":792,"height":11}},{"id":"3a8d0fee-aa86-4f40-90a2-3a95b9a482f3","block_type":"box","text":"Credit Agreement","page_number":25,"box":{"x":69,"y":226,"width":129,"height":11}},{"id":"5463f71c-be9d-4fc8-9e8e-9456fee7e056","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":25,"box":{"x":101,"y":249,"width":757,"height":11}},{"id":"37fe290b-a5c7-401e-8ca8-79894beba2fe","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":25,"box":{"x":69,"y":263,"width":817,"height":12}},{"id":"6be95171-831f-4da4-b212-9107d9cf92ca","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":25,"box":{"x":68,"y":279,"width":743,"height":11}},{"id":"3d073278-79a5-42a6-a3b6-bc206233c466","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":25,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"a5e0fe2a-e6cd-47ae-b362-6b94b9bc846b","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":25,"box":{"x":68,"y":309,"width":818,"height":11}},{"id":"bf1c0850-2548-4fb2-b1ba-2dea480c48fa","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":25,"box":{"x":70,"y":324,"width":761,"height":12}},{"id":"a98ecb76-b681-4286-b30d-17603900d5f1","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":25,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"ff2da515-b9dd-4dd7-b4cf-02abf95eb441","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":25,"box":{"x":68,"y":355,"width":825,"height":11}},{"id":"386ad422-7eaf-43f9-bbbf-65ba77eedced","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":25,"box":{"x":69,"y":370,"width":805,"height":11}},{"id":"2518f5de-e976-49d6-8c54-e450628848f4","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":25,"box":{"x":69,"y":385,"width":838,"height":11}},{"id":"6d1070e8-6078-4f6a-842e-3d0fe07f91bc","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":25,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"cf16b2cb-a7bb-411b-aa29-22091f11dcd6","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":25,"box":{"x":69,"y":415,"width":833,"height":11}},{"id":"d43ae5e0-8adf-45ce-b15a-7ddd76032927","block_type":"box","text":"charged interest at a variable rate.","page_number":25,"box":{"x":69,"y":430,"width":245,"height":11}},{"id":"8d3378da-0f9d-4d39-a00f-d8f3e2ac98de","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":25,"box":{"x":68,"y":460,"width":491,"height":12}},{"id":"c8274f34-a003-4329-8758-ff9c9cb65db5","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":25,"box":{"x":102,"y":483,"width":773,"height":11}},{"id":"34382ed1-b5ac-44d7-b98a-aa396a8f1ce2","block_type":"box","text":"received by Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the past three fiscal years.","page_number":25,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"b640b8bc-573c-445f-b9c1-7b2270312756","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":25,"box":{"x":70,"y":513,"width":656,"height":11}},{"id":"9eb416de-f8f5-43e6-8bc6-8596942f118b","block_type":"box","text":"Investor A Shares","page_number":25,"box":{"x":652,"y":542,"width":102,"height":7}},{"id":"5dedc4a4-6fd4-4a73-ba24-71bcea18819b","block_type":"box","text":"Gross","page_number":25,"box":{"x":516,"y":567,"width":32,"height":8}},{"id":"55c2df00-a968-4068-8e16-679c56e71fcf","block_type":"box","text":"Sales","page_number":25,"box":{"x":516,"y":578,"width":32,"height":7}},{"id":"96ee85c2-df70-4219-9312-9d70a419b436","block_type":"box","text":"Charges","page_number":25,"box":{"x":508,"y":588,"width":48,"height":8}},{"id":"dbad0895-7c61-4f20-9349-be8019c03edc","block_type":"box","text":"Collected","page_number":25,"box":{"x":505,"y":598,"width":54,"height":7}},{"id":"825fea1d-d81d-446e-b601-9ef0912c3332","block_type":"box","text":"Sales Charges","page_number":25,"box":{"x":598,"y":578,"width":84,"height":8}},{"id":"b957e433-a692-4b8a-ae9c-e4da36dc8a2c","block_type":"box","text":"Retained by","page_number":25,"box":{"x":606,"y":588,"width":69,"height":8}},{"id":"b085c33b-e339-4033-b197-e9518f84e578","block_type":"box","text":"BRIL","page_number":25,"box":{"x":627,"y":598,"width":27,"height":7}},{"id":"659af53e-6ef7-4b25-8f8e-1ba69700f648","block_type":"box","text":"Sales Charges","page_number":25,"box":{"x":711,"y":578,"width":84,"height":8}},{"id":"c4d11ad1-70ec-462d-824d-6c07b4898331","block_type":"box","text":"Paid To","page_number":25,"box":{"x":733,"y":588,"width":41,"height":7}},{"id":"33f6b101-1838-4be2-9e9f-9c60cd98ce6e","block_type":"box","text":"Affiliates","page_number":25,"box":{"x":727,"y":598,"width":52,"height":7}},{"id":"9a99c2ca-68b5-47c2-81e7-32c9c3df8c68","block_type":"box","text":"CDSCs","page_number":25,"box":{"x":847,"y":557,"width":40,"height":7}},{"id":"e50829a1-4ca6-42cb-89cc-766beac192ce","block_type":"box","text":"Received on","page_number":25,"box":{"x":832,"y":567,"width":70,"height":8}},{"id":"f694801f-ec71-4891-b088-26e73750dfaa","block_type":"box","text":"Redemption of","page_number":25,"box":{"x":826,"y":577,"width":84,"height":9}},{"id":"c5b86941-22a6-4bbf-8a1a-38d7e14d1d4b","block_type":"box","text":"Load-Waived","page_number":25,"box":{"x":832,"y":588,"width":71,"height":7}},{"id":"644a5758-193e-4982-bcc7-8de623ff3cd7","block_type":"box","text":"Shares","page_number":25,"box":{"x":847,"y":598,"width":40,"height":7}},{"id":"d726db9e-46ef-4ce0-8165-46317709bdfb","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . .","page_number":25,"box":{"x":70,"y":615,"width":305,"height":11}},{"id":"f5ac765b-e192-4489-a44b-f4792aef4207","block_type":"box","text":"...........","page_number":25,"box":{"x":381,"y":623,"width":84,"height":1}},{"id":"d11398e7-e6f5-4ea1-a118-90597a9c0866","block_type":"box","text":"$351,776 $24,023 $24,023 $ 4,727","page_number":25,"box":{"x":496,"y":615,"width":402,"height":11}},{"id":"85dad904-fccc-420e-a242-8de9a1653460","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . .","page_number":25,"box":{"x":70,"y":631,"width":305,"height":11}},{"id":"4c3c6b2a-bdb2-405d-96b0-ebd5b628ba46","block_type":"box","text":"...........","page_number":25,"box":{"x":381,"y":638,"width":84,"height":1}},{"id":"f614ac8f-67a2-4e88-8057-60ccbd1413f0","block_type":"box","text":"$664,541 $45,924 $45,924 $10,753","page_number":25,"box":{"x":496,"y":630,"width":402,"height":11}},{"id":"a326c0a6-bfa0-4a52-8710-bce03626a9ea","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . .","page_number":25,"box":{"x":70,"y":646,"width":305,"height":11}},{"id":"6315142e-4ec7-49e4-b6d8-67c15b56c6ba","block_type":"box","text":"...........","page_number":25,"box":{"x":381,"y":653,"width":84,"height":1}},{"id":"fc815f7a-ca4f-422c-8f96-8b36db6184f1","block_type":"box","text":"$782,168 $52,637 $52,637 $ 7,841","page_number":25,"box":{"x":496,"y":645,"width":402,"height":11}},{"id":"5805a48d-c52f-4b02-a28c-99793eb43967","block_type":"box","text":"Investor C Shares","page_number":25,"box":{"x":760,"y":675,"width":103,"height":7}},{"id":"2b61aab5-848a-4641-89a6-8a96cc5207f2","block_type":"box","text":"CDSCs Received","page_number":25,"box":{"x":713,"y":691,"width":97,"height":7}},{"id":"cffcd21d-4ff2-437a-928c-349a24ad1194","block_type":"box","text":"by BRIL","page_number":25,"box":{"x":740,"y":701,"width":44,"height":9}},{"id":"2d392644-5353-45ae-9fbc-5573ac58f3fd","block_type":"box","text":"CDSCs Paid","page_number":25,"box":{"x":840,"y":691,"width":69,"height":7}},{"id":"c802258f-2f25-4ce6-88cf-f91c395cec5e","block_type":"box","text":"to Affiliates","page_number":25,"box":{"x":841,"y":701,"width":68,"height":7}},{"id":"2591dbb2-848c-4759-95c7-5df50905c5e8","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":719,"width":474,"height":11}},{"id":"e16d43d6-7aab-4cfa-ba7d-0ab15054de84","block_type":"box","text":". . . . . . . . . . . . . . . . . $ 9,284 $ 9,284","page_number":25,"box":{"x":550,"y":718,"width":356,"height":11}},{"id":"ebd1555b-941f-4eb1-85c0-0ad4abea4ffd","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":734,"width":474,"height":11}},{"id":"3bc04acb-c57d-4b7d-a356-06dd35b8d0c0","block_type":"box","text":". . . . . . . . . . . . . . . . . $ 9,550 $ 9,550","page_number":25,"box":{"x":550,"y":733,"width":356,"height":11}},{"id":"3652963b-785a-41e2-bd5f-1418cc70f4ec","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":749,"width":474,"height":11}},{"id":"5389b218-032c-4594-a817-2032b456ffb4","block_type":"box","text":".................","page_number":25,"box":{"x":550,"y":756,"width":132,"height":2}},{"id":"4ae8cfec-2ac6-422f-b3b6-4a62c3ac6e68","block_type":"box","text":"$14,412 $14,412","page_number":25,"box":{"x":731,"y":748,"width":175,"height":11}},{"id":"79ee7940-f43b-435f-8e67-572bcca26f73","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 shown about the 12b-1 fees the","page_number":25,"box":{"x":101,"y":773,"width":781,"height":11}},{"id":"374d4734-cea8-4467-a27a-078f08ed3abf","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":25,"box":{"x":70,"y":788,"width":800,"height":11}},{"id":"c5d44a9d-38a6-4e3a-8196-7dd889eeb3ae","block_type":"box","text":"providing shareholder servicing activities for Investor A and Service Shares and for providing shareholder servicing","page_number":25,"box":{"x":70,"y":803,"width":815,"height":11}},{"id":"51f5072d-f94f-45df-85d8-b60264c09a4c","block_type":"box","text":"and distribution-related activities and services for Investor C and Class R Shares.","page_number":25,"box":{"x":69,"y":818,"width":579,"height":9}},{"id":"0bb17bb4-54d0-4038-ae4b-2e8993951b38","block_type":"box","text":"Class Name","page_number":25,"box":{"x":69,"y":847,"width":68,"height":7}},{"id":"08ad6d2f-0201-407f-96d9-3e381f385d8a","block_type":"box","text":"Fees Paid to BRIL","page_number":25,"box":{"x":806,"y":847,"width":103,"height":7}},{"id":"933b94fe-a9f6-433b-8c2c-52cebf3919d4","block_type":"box","text":"Investor A Shares .","page_number":25,"box":{"x":70,"y":864,"width":134,"height":9}},{"id":"2444a29a-290f-4267-8a1e-1c39e4af54a6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,","page_number":25,"box":{"x":210,"y":864,"width":626,"height":11}},{"id":"56aed5d2-60e8-43b5-b668-607e6c4805b7","block_type":"box","text":"696,393","page_number":25,"box":{"x":838,"y":864,"width":63,"height":11}},{"id":"4ef561ab-3be7-47c8-9d0f-74202fc18447","block_type":"box","text":"Investor C Shares . . .","page_number":25,"box":{"x":70,"y":879,"width":150,"height":9}},{"id":"ab2e86b9-6166-4e0f-ae1a-9e8d9263924e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":25,"box":{"x":226,"y":879,"width":610,"height":11}},{"id":"4e08adf3-1671-44c5-a1a6-c9c54a95f9ab","block_type":"box","text":"637,364","page_number":25,"box":{"x":838,"y":879,"width":63,"height":11}},{"id":"d9d3b51e-7833-40e7-b5da-671a7be4783e","block_type":"box","text":"Service Shares . .","page_number":25,"box":{"x":69,"y":895,"width":126,"height":8}},{"id":"b4330a06-b955-43c3-9741-ac623934fb09","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58,389","page_number":25,"box":{"x":202,"y":894,"width":699,"height":11}},{"id":"2c864c14-5525-4f14-9cfc-965bef19893c","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"497c0a0e-6766-44e1-8c3b-308de28eacf7","block_type":"box","text":"NM1026U-5978647-25/232","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f89b0cd5-7903-4230-882b-6ab5c8f3fb4c","block_type":"box","text":"Class Name","page_number":26,"box":{"x":69,"y":49,"width":68,"height":7}},{"id":"c95d8847-7f2f-4f15-bac8-ea3eee2d4c65","block_type":"box","text":"Fees Paid to BRIL","page_number":26,"box":{"x":806,"y":49,"width":103,"height":7}},{"id":"2baa3ae7-2db6-44bb-9c67-41aeb656c7bb","block_type":"box","text":"Class R Shares","page_number":26,"box":{"x":69,"y":67,"width":109,"height":9}},{"id":"4ffe241d-765e-4cf1-9f40-9b1efb438dc9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":26,"box":{"x":185,"y":66,"width":651,"height":11}},{"id":"bda6df17-730f-4996-9ee8-a7235f5237d2","block_type":"box","text":"065,678","page_number":26,"box":{"x":838,"y":67,"width":63,"height":10}},{"id":"e1325ba3-2dee-4130-b0ab-a12532ce1393","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":26,"box":{"x":68,"y":98,"width":318,"height":11}},{"id":"d8a60be3-97ad-4462-8311-b08b84dcc57d","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":26,"box":{"x":101,"y":121,"width":805,"height":11}},{"id":"c9e45fd8-8816-4b22-896e-d02f448c1cfc","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026, is set","page_number":26,"box":{"x":68,"y":136,"width":827,"height":11}},{"id":"d88ef96c-707e-4ec2-a7a7-be8fa5a72905","block_type":"box","text":"for th below.","page_number":26,"box":{"x":68,"y":151,"width":83,"height":9}},{"id":"64eef368-059b-4f6a-aef6-85074eade300","block_type":"box","text":"Investor A Shares","page_number":26,"box":{"x":798,"y":179,"width":102,"height":8}},{"id":"67fea7e0-d97f-4d97-b913-abe2b4b29b02","block_type":"box","text":"Net Assets . . .","page_number":26,"box":{"x":70,"y":197,"width":100,"height":9}},{"id":"511f3c25-f862-42d8-b870-32f53f6adef0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,171,","page_number":26,"box":{"x":176,"y":196,"width":669,"height":12}},{"id":"e71d3045-edac-4995-9779-29312002f9a0","block_type":"box","text":"474,436","page_number":26,"box":{"x":847,"y":197,"width":62,"height":11}},{"id":"430b8f33-a2be-4695-baaf-c4624539710c","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":212,"width":320,"height":11}},{"id":"521320b2-0609-46df-97e2-dd0331471cd9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,","page_number":26,"box":{"x":396,"y":212,"width":449,"height":11}},{"id":"4c26f530-0d8d-4789-93d1-736f1b2ce071","block_type":"box","text":"440,907","page_number":26,"box":{"x":847,"y":212,"width":61,"height":11}},{"id":"1019475a-cdd0-4b67-a06d-a74f62ae42f7","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":26,"box":{"x":70,"y":227,"width":571,"height":12}},{"id":"85216b18-ffee-4b29-8d7b-b0f13f7fff64","block_type":"box","text":"..............","page_number":26,"box":{"x":649,"y":235,"width":108,"height":1}},{"id":"8bd13c49-b024-4842-baae-2ac06e18d52c","block_type":"box","text":"$63.05","page_number":26,"box":{"x":857,"y":227,"width":52,"height":10}},{"id":"72b4037b-c514-48c6-97be-166e2cef1e01","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":26,"box":{"x":69,"y":242,"width":534,"height":12}},{"id":"6ba8c0e9-ded6-477e-b777-656157409558","block_type":"box","text":"1","page_number":26,"box":{"x":604,"y":243,"width":4,"height":4}},{"id":"99b48e2d-b9be-450c-bf4d-7d9951d4e37d","block_type":"box","text":". . . . . . . . . . . . . . . . . . 3.49","page_number":26,"box":{"x":616,"y":243,"width":293,"height":8}},{"id":"725de55d-c95d-4fcf-b195-7248045f6425","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":69,"y":262,"width":687,"height":11}},{"id":"9b592dc5-b9cc-4214-b39f-595e19ed55e0","block_type":"box","text":"$66.54","page_number":26,"box":{"x":857,"y":261,"width":52,"height":11}},{"id":"6e0c0469-70cb-4c85-a04c-bc8db92718e9","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":294,"width":3,"height":4}},{"id":"9c85becf-7678-48a2-a664-269a910b5bcf","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":26,"box":{"x":94,"y":294,"width":541,"height":9}},{"id":"840eab53-47b4-424e-ae03-8255c034875d","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":26,"box":{"x":101,"y":315,"width":796,"height":11}},{"id":"c92cf016-6506-4305-879a-0efa8b2b678d","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":26,"box":{"x":69,"y":330,"width":833,"height":11}},{"id":"4cceeb93-fd6c-407b-8b6b-66974da5c943","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":26,"box":{"x":69,"y":345,"width":813,"height":11}},{"id":"881c2751-44d9-41f0-a16a-bf72ca38d0c4","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":26,"box":{"x":69,"y":360,"width":377,"height":12}},{"id":"cf72f713-124f-430a-9420-d1a4f230c95e","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":26,"box":{"x":68,"y":391,"width":302,"height":11}},{"id":"37892d6e-05e2-45aa-905a-852f5f330b29","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":26,"box":{"x":102,"y":413,"width":609,"height":11}},{"id":"1e5896ad-8fcb-45ca-8379-ed9d85dd3d23","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, for the","page_number":26,"box":{"x":102,"y":436,"width":800,"height":11}},{"id":"55522bb9-54e7-44d8-b23e-86ed1fbcd5b5","block_type":"box","text":"periods shown is set for th in the following tables:","page_number":26,"box":{"x":70,"y":451,"width":350,"height":11}},{"id":"d7a5ba50-39f0-45ec-80d3-4287835a961d","block_type":"box","text":"Aggregate Brokerage","page_number":26,"box":{"x":613,"y":479,"width":125,"height":9}},{"id":"9a022667-1ab6-4f55-8848-9dd965275fb0","block_type":"box","text":"Commissions Paid","page_number":26,"box":{"x":623,"y":489,"width":106,"height":7}},{"id":"407c4217-4ba7-4d76-aebf-00ec7d7df997","block_type":"box","text":"Brokerage Commissions","page_number":26,"box":{"x":769,"y":479,"width":140,"height":9}},{"id":"30503620-978c-4bc9-8015-30a0fb4f9ef4","block_type":"box","text":"Paid to Affiliates","page_number":26,"box":{"x":791,"y":489,"width":96,"height":7}},{"id":"8e1bc9dd-9fec-4003-bc7e-f9db046b808d","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":26,"box":{"x":70,"y":507,"width":292,"height":11}},{"id":"40b596de-7201-4440-a573-be09bede9d26","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":26,"box":{"x":369,"y":506,"width":286,"height":11}},{"id":"55caa40d-099b-4610-8e7f-dc84edd3cc00","block_type":"box","text":"231,585 $0","page_number":26,"box":{"x":657,"y":506,"width":191,"height":11}},{"id":"bb51c730-f776-4c49-9c75-9026b2fd4c99","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":26,"box":{"x":70,"y":522,"width":292,"height":11}},{"id":"b24b2483-13ec-4deb-96fd-128522735bf4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":26,"box":{"x":369,"y":521,"width":286,"height":12}},{"id":"ebd82229-cf55-414c-9ed0-c646c45d75b0","block_type":"box","text":"427,246 $0","page_number":26,"box":{"x":657,"y":521,"width":191,"height":12}},{"id":"c4ef75a1-1e5b-45ac-9bc7-8172168dbdb5","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":26,"box":{"x":70,"y":537,"width":292,"height":11}},{"id":"117b9d73-9f9d-4bb1-a206-cee42ad83a7d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":26,"box":{"x":369,"y":537,"width":286,"height":11}},{"id":"1857d283-187d-4923-9d6f-ed8f645199c0","block_type":"box","text":"132,419 $0","page_number":26,"box":{"x":657,"y":537,"width":191,"height":11}},{"id":"bfbadcc5-0b1e-4df8-9af3-50e0febafcd8","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":26,"box":{"x":101,"y":561,"width":770,"height":11}},{"id":"8b482d24-0c13-4658-aa31-99f5497529db","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":26,"box":{"x":69,"y":576,"width":814,"height":12}},{"id":"fb6a87bb-f2f0-47c4-b0db-13b82479010f","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":26,"box":{"x":68,"y":591,"width":829,"height":12}},{"id":"43a874f6-f5e4-4b9f-b4a2-7967eecee7de","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":26,"box":{"x":69,"y":606,"width":822,"height":12}},{"id":"83d06f1d-9096-4bd5-9342-d1f655dbcf84","block_type":"box","text":"with such brokers.","page_number":26,"box":{"x":68,"y":622,"width":130,"height":9}},{"id":"1cfacce1-9c09-44f2-a3af-1d0069e60ce5","block_type":"box","text":"Amount of Commissions","page_number":26,"box":{"x":325,"y":650,"width":141,"height":7}},{"id":"89a7e3ea-1bf7-41c7-aa32-346047239d31","block_type":"box","text":"Paid to Brokers for","page_number":26,"box":{"x":341,"y":660,"width":109,"height":7}},{"id":"91f298ad-e807-46f7-838c-7e44e1633074","block_type":"box","text":"Providing 28(e) Eligible","page_number":26,"box":{"x":327,"y":670,"width":136,"height":9}},{"id":"065fe09e-34c2-4c8c-8493-7dbd2fd1eca8","block_type":"box","text":"Research Services","page_number":26,"box":{"x":342,"y":680,"width":107,"height":7}},{"id":"4a8ed545-53ba-4f05-99d3-ad43cb9950b9","block_type":"box","text":"Amount of Brokerage","page_number":26,"box":{"x":528,"y":670,"width":124,"height":9}},{"id":"2674a126-a57f-4be0-9226-e22f4fc109e8","block_type":"box","text":"Transactions Involved","page_number":26,"box":{"x":527,"y":680,"width":126,"height":7}},{"id":"89225088-0980-44f0-b525-d335d624b9a7","block_type":"box","text":"$464,274 $1,949,438,316","page_number":26,"box":{"x":359,"y":697,"width":291,"height":11}},{"id":"ce0665cd-59f6-4157-a641-6d400fe4f47f","block_type":"box","text":"The Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under the Investment","page_number":26,"box":{"x":101,"y":722,"width":769,"height":11}},{"id":"6f16f491-c291-4997-9980-088ada8ab717","block_type":"box","text":"Company Act) or their parents as of May 31, 2026 whose shares were purchased during the fiscal year ended","page_number":26,"box":{"x":69,"y":737,"width":784,"height":11}},{"id":"df06e1c5-2189-4388-a029-8d868e64fb7e","block_type":"box","text":"May 31, 2026.","page_number":26,"box":{"x":70,"y":752,"width":104,"height":11}},{"id":"81dfe61a-cf53-4daa-8c19-f0b412a7e155","block_type":"box","text":"Securities Lending","page_number":26,"box":{"x":68,"y":782,"width":135,"height":11}},{"id":"24f81c0d-d488-4ee1-b4b3-55af7f1656da","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":26,"box":{"x":101,"y":805,"width":807,"height":11}},{"id":"bcc816df-f565-4e6c-852d-cf3b2f29d5bf","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":26,"box":{"x":69,"y":820,"width":817,"height":11}},{"id":"0a7a6e3a-353b-4388-a3dc-c704a187091d","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":26,"box":{"x":69,"y":835,"width":813,"height":11}},{"id":"e436e20a-df81-4062-8805-99034a190e6d","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":26,"box":{"x":70,"y":850,"width":838,"height":12}},{"id":"44bdb24a-bed0-4a44-a46b-3478d036dabb","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":26,"box":{"x":69,"y":865,"width":813,"height":12}},{"id":"212a99b1-2f32-45e6-b436-4660db26ecb2","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":26,"box":{"x":70,"y":881,"width":646,"height":11}},{"id":"ca2f6bf3-c000-44bc-a8b6-da6badabb08d","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4ed472a3-5163-4931-9a9a-91b67c673925","block_type":"box","text":"NM1026U-5978647-26/232","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a2f0e1d2-4396-47e3-acea-fd05e4a2bcbc","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":27,"box":{"x":101,"y":45,"width":735,"height":11}},{"id":"c21b3302-e873-4f74-8090-b2b7c68287ae","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":27,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"eab992d7-1e0b-4c83-9fb8-1f523f535a19","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":27,"box":{"x":70,"y":75,"width":822,"height":11}},{"id":"e2cc85f4-ab89-4dc9-b815-1850efdb68cd","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":27,"box":{"x":69,"y":90,"width":787,"height":11}},{"id":"9b404884-6a51-4939-892b-af831afd3844","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":27,"box":{"x":69,"y":105,"width":783,"height":11}},{"id":"73913e4d-7403-4c9e-8847-8fc08c5f93d9","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":27,"box":{"x":70,"y":120,"width":800,"height":12}},{"id":"e47e6d23-5321-479f-bace-0681d1447765","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":27,"box":{"x":70,"y":135,"width":813,"height":12}},{"id":"745604d5-9d7c-4560-80a8-cd28f51b4ea9","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":27,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"ea5aa32c-94d0-4c22-8c98-1b30772f7a38","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":27,"box":{"x":69,"y":166,"width":773,"height":11}},{"id":"42493736-c214-4946-a78a-809cb3a94aaa","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":27,"box":{"x":101,"y":188,"width":776,"height":12}},{"id":"515ccd12-fa37-4c1b-82e7-ac4f2854eb64","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":27,"box":{"x":69,"y":203,"width":831,"height":12}},{"id":"5b9b6e72-dc49-44fb-a454-59cd76198f77","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":27,"box":{"x":68,"y":218,"width":812,"height":12}},{"id":"cf4e614b-2de4-4ee7-916d-3e1409e89a46","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":27,"box":{"x":69,"y":234,"width":799,"height":11}},{"id":"fc7f5961-28d0-4fe5-83d3-880ed4cf076c","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":27,"box":{"x":68,"y":249,"width":835,"height":11}},{"id":"fb65202a-c937-4acd-821f-5550f5450b73","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":27,"box":{"x":69,"y":264,"width":818,"height":11}},{"id":"52ad9730-a762-42f4-8d46-18512d4304e0","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":27,"box":{"x":68,"y":279,"width":789,"height":11}},{"id":"4861b4c4-246f-4600-be36-76d56ac168e7","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":27,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"dafb1aa4-446d-4bf4-b0a2-9a8a3aea6a2c","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":27,"box":{"x":69,"y":309,"width":839,"height":11}},{"id":"120b536f-606f-4787-bb27-220c81a25c05","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":27,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"eca686ed-2cb0-4efb-a107-8903ebed15e2","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":27,"box":{"x":70,"y":339,"width":830,"height":12}},{"id":"8d7f5140-c359-401d-a836-feb84dccce8e","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":27,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"21e9c4ad-9104-4084-9c8b-b6269136f88e","block_type":"box","text":"Fund’s returns on securities lending.","page_number":27,"box":{"x":70,"y":370,"width":258,"height":11}},{"id":"b97d2d3e-c244-40d3-a43e-280e63b1708e","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":27,"box":{"x":102,"y":392,"width":774,"height":12}},{"id":"0046c16f-2eb3-4bd4-97f9-a754e4e0a241","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":27,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"e13277bb-d158-45f6-aafe-fdec66c1b90f","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":27,"box":{"x":68,"y":423,"width":809,"height":11}},{"id":"911daf1e-621b-4f3e-bda6-bb4db6543adc","block_type":"box","text":"Trust and BIM.","page_number":27,"box":{"x":68,"y":438,"width":103,"height":9}},{"id":"1cf7b466-5f7e-4a0b-adfa-36298b84a9f7","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":27,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"16e1f840-bbcf-4295-a1a5-ec89b2f894e6","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":27,"box":{"x":70,"y":475,"width":815,"height":12}},{"id":"a988c9a6-8f30-4213-84e1-2b2a92ef5773","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":27,"box":{"x":69,"y":491,"width":463,"height":11}},{"id":"76f9227f-312f-49a3-8d39-b9131689a6c8","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":27,"box":{"x":102,"y":513,"width":753,"height":12}},{"id":"ae07107f-095e-43a4-90af-4c14a3d4ebdc","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":27,"box":{"x":69,"y":528,"width":778,"height":12}},{"id":"caadc7f4-47e0-4e77-aa01-4da8301e48e8","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":27,"box":{"x":70,"y":543,"width":817,"height":12}},{"id":"38b3dd3f-95fa-4562-9996-3a4cae9ca92f","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":27,"box":{"x":70,"y":559,"width":794,"height":11}},{"id":"4496332b-61e6-480f-80d3-00110d4d9f84","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":27,"box":{"x":69,"y":574,"width":825,"height":11}},{"id":"5c8a4b2f-d004-49b0-9597-2ea262028cbf","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":27,"box":{"x":102,"y":596,"width":683,"height":12}},{"id":"2e0990c9-a4a1-49e7-9f8f-e8821b1c9c9b","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":27,"box":{"x":101,"y":619,"width":803,"height":11}},{"id":"601495a2-3506-4219-bc4e-71995c93257a","block_type":"box","text":"the following:","page_number":27,"box":{"x":68,"y":634,"width":93,"height":12}},{"id":"d8dcb74f-9e20-4c2a-bea0-eb6007cc3ac8","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":27,"box":{"x":69,"y":654,"width":818,"height":12}},{"id":"a1b0a63a-ed54-4137-ab74-51526fe49c09","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":27,"box":{"x":102,"y":669,"width":333,"height":11}},{"id":"bdd23bd8-c139-4303-bdfb-3e6f07bdcc32","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":27,"box":{"x":69,"y":690,"width":538,"height":11}},{"id":"92202686-5038-4ce7-a96b-beddbce0f004","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":27,"box":{"x":69,"y":710,"width":330,"height":11}},{"id":"705d528f-dac0-4133-9bab-92509ae7fd91","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":27,"box":{"x":69,"y":730,"width":834,"height":11}},{"id":"c1b67ace-a107-4954-9ae8-0d4277f587c1","block_type":"box","text":"of excess collateral, as necessary;","page_number":27,"box":{"x":102,"y":745,"width":246,"height":11}},{"id":"2191124c-f1c2-4148-bbd9-c49430da4157","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":27,"box":{"x":69,"y":766,"width":562,"height":11}},{"id":"dea3c0b7-49aa-423d-a36b-a2853a34f70c","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":27,"box":{"x":69,"y":785,"width":665,"height":12}},{"id":"1a136d29-dc1d-4d70-ae34-8bcae30c7085","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":27,"box":{"x":69,"y":806,"width":822,"height":11}},{"id":"1048730b-7f33-4429-975e-06177100f66d","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":27,"box":{"x":101,"y":821,"width":803,"height":11}},{"id":"634e84d3-eeb7-4f45-8047-012874e75827","block_type":"box","text":"of the loaned securities; and","page_number":27,"box":{"x":102,"y":836,"width":203,"height":10}},{"id":"bcba4a35-8cce-4397-9213-8603a723adb5","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":27,"box":{"x":69,"y":856,"width":808,"height":11}},{"id":"16663eb0-8e8b-41b1-9f33-abbd77f726e0","block_type":"box","text":"I-25","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"db950c46-f447-4e6e-943d-10bfc623a96f","block_type":"box","text":"NM1026U-5978647-27/232","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e7bb86b0-4de8-46bd-a91e-a5a5560e78ea","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":28,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"a1974fa9-2568-4250-9f9d-af8633a71c72","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":28,"box":{"x":69,"y":60,"width":546,"height":11}},{"id":"f9f581f4-a9be-4fdc-b5a9-783ae3de3ed0","block_type":"box","text":"Gross income from securities lending activities","page_number":28,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"a4f5c5f9-28d7-46e5-8c2e-732c940c4868","block_type":"box","text":"................................................","page_number":28,"box":{"x":416,"y":95,"width":385,"height":1}},{"id":"c3f40acf-9f0d-47d4-972e-02e80b756a77","block_type":"box","text":"$2,728,810","page_number":28,"box":{"x":822,"y":87,"width":87,"height":11}},{"id":"e4aa17c6-9d65-4bcd-b795-1f911324fa97","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":28,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"215ab1d5-5481-4a09-ba7e-ffafc8954636","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":28,"box":{"x":79,"y":122,"width":599,"height":11}},{"id":"6fae5b97-a596-47b9-a382-2f02d9da2bb2","block_type":"box","text":"............... $","page_number":28,"box":{"x":685,"y":121,"width":145,"height":11}},{"id":"6182796b-0995-4bb5-b458-218c29c1e489","block_type":"box","text":"140,901","page_number":28,"box":{"x":847,"y":122,"width":62,"height":11}},{"id":"b8c27be2-3879-475c-a4c2-5520606166b9","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":28,"box":{"x":79,"y":137,"width":673,"height":12}},{"id":"54ae7324-46ee-4027-93ca-e977830e42a9","block_type":"box","text":". . . . . . $ 23,658","page_number":28,"box":{"x":758,"y":137,"width":151,"height":11}},{"id":"2057466d-81eb-4e43-9e1b-b4156fa01b68","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":28,"box":{"x":78,"y":152,"width":551,"height":12}},{"id":"d252c14b-b0cd-4d22-8327-542ef2dc7ff2","block_type":"box","text":"..................... $ 0","page_number":28,"box":{"x":636,"y":152,"width":273,"height":10}},{"id":"9124d182-3b71-47c8-8a2c-00889ad78010","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":28,"box":{"x":79,"y":167,"width":567,"height":12}},{"id":"b4cb3a82-8349-46d3-9eb9-7da5e99d133f","block_type":"box","text":"................... $ 0","page_number":28,"box":{"x":652,"y":167,"width":257,"height":10}},{"id":"6535be4b-a333-4a48-966a-e2c7bf6f13d7","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":28,"box":{"x":79,"y":183,"width":289,"height":11}},{"id":"c28e2b1c-d9af-4c68-b60b-440b18207176","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":28,"box":{"x":375,"y":182,"width":470,"height":11}},{"id":"b2e2dd8b-b15d-4386-af8c-92befcb6204a","block_type":"box","text":"960,615","page_number":28,"box":{"x":847,"y":183,"width":62,"height":10}},{"id":"0fedcecb-a2b0-4b70-9012-36af957fd991","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":28,"box":{"x":79,"y":198,"width":542,"height":11}},{"id":"dda3d857-0c73-4119-9635-dce87178a242","block_type":"box","text":"...................... $ 0","page_number":28,"box":{"x":628,"y":197,"width":281,"height":11}},{"id":"767ce516-abb5-490a-ad75-4bbd1e301aaf","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":28,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"8ca21293-9547-471d-ab8c-1557398f1efe","block_type":"box","text":"..................................","page_number":28,"box":{"x":530,"y":220,"width":271,"height":2}},{"id":"17cb10e1-b385-4de1-aa9f-69ff9f12e5dc","block_type":"box","text":"$2,125,174","page_number":28,"box":{"x":822,"y":212,"width":87,"height":12}},{"id":"70bf71c5-91ef-46c9-89e2-abb537b102af","block_type":"box","text":"Net income from securities lending activities","page_number":28,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"a18200c8-4a48-4c8b-a59e-0cb534b0f71f","block_type":"box","text":"..................................................","page_number":28,"box":{"x":399,"y":240,"width":402,"height":1}},{"id":"81574e8a-f615-466a-906e-8332516266cc","block_type":"box","text":"$ 603,636","page_number":28,"box":{"x":822,"y":232,"width":87,"height":11}},{"id":"7d4163f8-afe9-41fc-afa5-3a65252a83bd","block_type":"box","text":"VIII. Additional Information","page_number":28,"box":{"x":68,"y":268,"width":195,"height":9}},{"id":"dd2a4921-55e7-4cca-85d0-407cff843082","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":28,"box":{"x":102,"y":291,"width":352,"height":11}},{"id":"47ca4363-7750-483f-aa40-1d92fea87e12","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":28,"box":{"x":461,"y":291,"width":412,"height":10}},{"id":"0cf0a6eb-a0a6-4dbd-a261-6c021c0231a8","block_type":"box","text":"Street, Boston, MA 02110, serves as the Fund’s independent registered public accounting firm.","page_number":28,"box":{"x":69,"y":306,"width":685,"height":11}},{"id":"91969270-cbc4-4396-b05b-487a214238d9","block_type":"box","text":"Counsel.","page_number":28,"box":{"x":101,"y":329,"width":62,"height":9}},{"id":"1358d3d8-da13-45e9-a859-21c65eb0e5a9","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":28,"box":{"x":170,"y":329,"width":736,"height":11}},{"id":"5dbfe56d-8419-416a-9029-c809464c5968","block_type":"box","text":"the Fund’s counsel.","page_number":28,"box":{"x":68,"y":344,"width":139,"height":9}},{"id":"1f8efa4a-9a22-4118-b9f1-f8d171c8259c","block_type":"box","text":"The Trust","page_number":28,"box":{"x":68,"y":374,"width":69,"height":9}},{"id":"5d8e138e-4579-4e41-9f00-8063ac513f48","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":28,"box":{"x":101,"y":397,"width":807,"height":11}},{"id":"5a76a933-0ab9-4737-b7b2-99aa2528a112","block_type":"box","text":"Investment Company Act as an open-end management investment company. Effective January 31, 1998, the Trust","page_number":28,"box":{"x":70,"y":412,"width":816,"height":11}},{"id":"c2a18bfc-532b-4aa6-b006-7cd13adbbaa4","block_type":"box","text":"changed its name from Compass Capital Funds","page_number":28,"box":{"x":69,"y":427,"width":337,"height":11}},{"id":"4f45589f-cf9a-4cd2-8944-9d0dc8bf4260","block_type":"box","text":"SM","page_number":28,"box":{"x":407,"y":427,"width":11,"height":5}},{"id":"7773945c-63a3-4250-95e6-186ed0614851","block_type":"box","text":"to BlackRock Funds","page_number":28,"box":{"x":423,"y":427,"width":140,"height":9}},{"id":"eb1568d3-f460-4943-996a-4bb2cb15e320","block_type":"box","text":"SM","page_number":28,"box":{"x":564,"y":427,"width":11,"height":5}},{"id":"3de654d7-1dec-4050-9048-8c6f6dc4314f","block_type":"box","text":". The Trust is authorized to issue an unlimited","page_number":28,"box":{"x":577,"y":427,"width":325,"height":9}},{"id":"ec6f5b05-be6a-4ed0-b7d5-f68ff68e0125","block_type":"box","text":"number of shares of beneficial interest with a par value of $0.001 per share, which may be divided into different","page_number":28,"box":{"x":69,"y":441,"width":803,"height":12}},{"id":"6002b3bb-d776-49b7-8ec1-54261a1d85bb","block_type":"box","text":"series and classes. Effective on December 27, 2017, all of the issued and outstanding Investor B Shares of the","page_number":28,"box":{"x":69,"y":457,"width":801,"height":12}},{"id":"1bcc2ab5-dfa1-4b54-b3dd-c8b684cd98dd","block_type":"box","text":"Fund were conver ted into Investor A Shares of the Fund.","page_number":28,"box":{"x":70,"y":472,"width":398,"height":9}},{"id":"20773fe9-7906-45ab-9610-4f816581fdb2","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":28,"box":{"x":102,"y":495,"width":734,"height":11}},{"id":"01d60fb6-b801-42af-97be-05a970238487","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. 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For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":31,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"0a2e19b3-7436-4eb0-92d7-936f8b0d2bc8","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":31,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"c3c28eb8-54a9-4f02-b3f3-687e9234ac0d","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":31,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"98e96876-7718-4a42-9485-2d8cf0112f9c","block_type":"box","text":"par ticular Fund.","page_number":31,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"d4bc0fd5-dcb9-4e22-a491-2f4a6eefdcde","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":31,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"c7bb9c49-3ea9-4db7-a082-990cb61f6197","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":31,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"22beb5a4-2d63-45aa-b666-746fe8492a23","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":31,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"7f5b8b21-8fbb-4e5d-9c86-bf28c8b16b20","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":31,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"23d0ed52-7b48-4609-920b-3e72d0fc9375","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":31,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"57e80b2e-ff10-4ce2-8019-5d00f4f105c3","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":31,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"69a5befa-aafe-4a70-8b23-fba4cd486bdf","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":31,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"0b5b5688-189c-46ce-8053-ae712fdaafb9","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":31,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"bcf89efb-28f2-4203-a4c2-a8926dc05e97","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":31,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"06358920-8bac-4e10-8ab5-4767f16a5975","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":31,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"f1f2d01a-2afd-4a11-9e50-dbcd0f6e18a5","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":31,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"075e4cb0-19ad-4a3a-9890-d3758e5d714a","block_type":"box","text":"Asset-Backed Securities.","page_number":31,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"62dddc9e-694f-478f-99dc-e74f0e4a2875","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":31,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"1e307e68-341f-4c16-af7c-7b8775d96bc8","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":31,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"d08325f0-c26c-4181-9e72-b6d97eb94274","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":31,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"1fd9e488-735e-43a9-9c11-828e8ac2142e","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":31,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"44522e03-8707-42ca-8d1b-5c15111a405d","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":31,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"5e934052-2f72-42db-b292-114095e89b5b","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":31,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"6b350a6b-7284-4f57-8c11-1ea160ff2f2e","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":31,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"50e181d6-84a9-4c2c-a44e-70563532607c","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":31,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"f76373da-206d-455d-ac2e-8cddc60bf230","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":31,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"74aed5a6-bbf3-4189-a628-34d22118f0ef","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":31,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"0b3227d1-d1c4-4358-92f5-557f953ad6d2","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":31,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"c2dd5055-048e-4003-81e7-967217b65306","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":31,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"b439ff9f-f2bc-4c81-995f-954e71bc09e3","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":31,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"734585bf-a518-4a72-8794-f1fd88221e34","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":31,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"e078a440-ec72-4043-992b-0ce7f6e1fba7","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":31,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"333f252d-a4c6-4a3d-88ee-65f9eabee39e","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":31,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"1c85cc40-e13d-41ca-97fe-c9ae71951cef","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":31,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"5d3a5e4e-e93e-47c4-a5b9-0ad697103290","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":31,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"f0c87565-e86d-4786-aa44-916ab2004594","block_type":"box","text":"II-1","page_number":31,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"575111f2-8ed3-45c5-8720-d8c437e4f5a0","block_type":"box","text":"NM1026U-5978647-31/232","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"75172d74-d396-475f-93ef-047f2b581581","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":32,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"67dcc58b-c81b-4b56-9444-4256decf2220","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":32,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"86017363-2b23-4f71-8bbd-e3ce90f47c17","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":32,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"dff9d506-b63e-481e-9689-4a8dc7ae479c","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":32,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"1d12c475-9982-47fe-8755-93c80e45163d","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":32,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"ec88c4ee-6ce3-4a62-838a-7319ce71177a","block_type":"box","text":"Asset-Based Securities.","page_number":32,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"b62bed84-e390-4164-b07e-d6d39eefa204","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":32,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"44463ec9-ae2f-4d7d-a4e2-85afbfb43e47","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":32,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"4905be85-c233-4f21-ae08-6016e2475fe9","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":32,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"6d2ddc16-ebc4-4b1a-8428-84c218d5b46f","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":32,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"2b6a2681-4ef0-479e-af87-2b6d7b69ba66","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":32,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"c5a227d3-190b-453a-9f97-a17707593ae8","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":32,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"c14ad101-3c3f-48c2-b289-bd7ca313c9e1","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":32,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"01c9aba8-268c-470d-8176-9a36718f6225","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":32,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"1019a1eb-0748-4a22-a705-5418d3702479","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":32,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"c601672e-d125-4522-815f-4c39099a1411","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":32,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"3696cf0e-f78e-43e0-ad36-f76d6c269f69","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":32,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"ae5cea8f-cdcd-44df-87d6-d5423891ad6f","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":32,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"22d929f6-3222-4458-acd6-97125a9b943c","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":32,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"da587b7e-f408-4356-9545-569d0fc9b6e8","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":32,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"b431b19c-a0c4-4a02-9aea-8679aeb3b4da","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":32,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"3147f94d-13b4-4f98-8643-5c8658c8b07e","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":32,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"57180baf-2ef8-4ffc-a633-cfe962912fbb","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":32,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"2a79a46e-69eb-433c-9934-4e55a4763363","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":32,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"a9ec8db2-d9a5-44f4-9bad-1f31602749a6","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":32,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"3a6617e8-3719-41dd-9250-d04c3e202678","block_type":"box","text":"appreciation in the underlying asset.","page_number":32,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"bc3e826a-7a70-4ef2-a1e1-34c85645b7d4","block_type":"box","text":"Precious Metal-Related Securities.","page_number":32,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"786528c3-3829-49f3-aee6-4cfc3fa3c069","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":32,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"3d935efe-c69e-499f-a3ce-371a0c8c2b8d","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":32,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"d9081fa4-2341-4dbf-8188-60457c1dbb32","block_type":"box","text":"e.g.","page_number":32,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"76984d99-8d86-4264-9966-2f707c668775","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":32,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"f8003da3-da20-4b1c-9a6a-16544cb24e0c","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":32,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"07467d3b-0972-4c55-a772-f3378f642d1e","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":32,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"523de154-6b79-475e-ba97-fba7749622cb","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":32,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"76b65773-bee0-4858-b4a3-02146fe1f270","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":32,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"a2d93f01-c121-45ee-970a-50881377cd8e","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":32,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"d9e8cecb-b4bb-4044-a607-062c27d25617","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":32,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"3da46f33-1fdb-4a7a-870d-6a7f38ae3fef","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":32,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"17da51c3-85db-4b69-af10-fb2c1fb5997e","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":32,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"3968ca58-c23f-4bb9-8a3a-374d2f0d3e15","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":32,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"be92c5a9-a072-400f-8033-d6eac1f3d792","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":32,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"c58aa1d5-da69-4643-9b88-208b80bd3c3c","block_type":"box","text":"South African gold production.","page_number":32,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"7ebd78a7-5021-467b-84cb-dd483e8404c6","block_type":"box","text":"Borrowing and Leverage.","page_number":32,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"1877c938-8014-4535-9633-8355f5a706a7","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":32,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"39d3230f-3564-4602-be57-622cc5f02d2d","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":32,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"391e717d-9de7-4457-ab76-da753a7df7a9","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":32,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"37cab315-6b79-47e7-9953-f66620c365e5","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":32,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"5ec36914-f41e-419e-ab71-c0c45a41247f","block_type":"box","text":"other securities transactions.","page_number":32,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"e39adddd-aff2-47cc-ba76-09e205af5d31","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":32,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"37ce6f35-e190-4b61-a7f6-7fc30a8ad83a","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":32,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"2e002249-405c-4967-80cb-e12cd2da7637","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":32,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"05ff671b-e978-4643-ab56-1a852c2dd81b","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":32,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"29a8fb6a-c011-400d-a8c6-34d02464b6e5","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":32,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"1a22cbc5-6681-4c3e-92c8-dc1c6ab10d19","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":32,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"3589941e-64cf-43c4-b9fc-502b5b117a16","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":32,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"dc7a53cf-9d2f-4fbd-aa77-309730c75bd4","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":32,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"dfa91185-c0cc-4f76-8cc6-32be71d3d165","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":32,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"4be7c998-79dc-40b4-a5dd-01cd4dcff8bd","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":32,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"07ae6886-4521-4681-a082-a4e7ba68754a","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":32,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"72b6d0ab-0bde-45a0-9638-88ff4f43a471","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":32,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"105f1a95-54fd-4541-bf3e-3e1c1b4603cd","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":32,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"4e780719-f251-4b97-981d-d0b5d7016f58","block_type":"box","text":"II-2","page_number":32,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f944c724-7142-4e7f-88d4-a0b5aba0c6f2","block_type":"box","text":"NM1026U-5978647-32/232","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"62fdd1a3-9387-44c9-bf24-32bd90552364","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":33,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"2c2b3c18-83c3-4443-9475-627f133ccba0","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":33,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"a2d24e5a-7048-408b-b062-60390effaa6e","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":33,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"ab0507b8-9d70-4d69-b786-7e4c60fd2587","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":33,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"14d047fb-b2ab-4f98-ada1-5f182eaf3fad","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":33,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"3b6538a1-f363-448c-aff5-9fc01a9b5247","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":33,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"27b3fcad-79d0-4123-923d-925b75f6d5d2","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":33,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"da1561bb-13d6-418d-909b-99bb18186b64","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":33,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"39aacdb4-96aa-413d-ad8e-e7a60a0a1384","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":33,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"d8a1a8b2-23b8-4025-97b8-bc8c8089393b","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":33,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"50cf4b2e-4ba3-470a-846d-67f0ba89e5ea","block_type":"box","text":"Cash Management.","page_number":33,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"ae75dedd-7ac7-4b4d-ba3f-df9a7f8b0bf9","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":33,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"e7e0092b-f9c3-4d0e-88f3-910f0fd36582","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":33,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"9172a5d6-3115-40c1-912a-482dad3cd17d","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":33,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"1df8bb89-5981-48a3-9b7f-9bf21e6bfe98","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":33,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"9b322817-0ead-4a9d-b5ca-9cd94bf5cd13","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":33,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"5a5e544d-5e63-44ba-9989-6e51bfc08a9a","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":33,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"52cffa2d-4a1b-4976-b27e-f156a6be7c11","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":33,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"eecdf56d-5d3d-4c72-8cb1-d44234e4283a","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":33,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"698aad58-02ca-4b50-bdbb-5eaf5c8e94e5","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":33,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"d6f1d5c5-ac41-428b-ba40-e96dae950ace","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":33,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"5d6feec7-c2ba-42c8-b984-331465b2653d","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":33,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"e1af862f-d424-4627-b46e-46aea1f76a3b","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":33,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"7f5f4364-386d-4d1e-b0c5-6e5c5753f356","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":33,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"beb49f06-7ed7-4577-abf7-ebf1bdeaa0ab","block_type":"box","text":"Collateralized Debt Obligations.","page_number":33,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"0581ab67-2eaf-4698-8d0c-8037fe82e353","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":33,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"9401d17c-09df-478a-95a7-f511fb87e53e","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":33,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"b1c25542-f9ed-4b74-b89b-ebbd3dbcc83f","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":33,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"7f3d1f2b-71d2-4ef2-922d-f45ce4be060a","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":33,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"b212780c-74d5-42a9-a3de-0649dd2be344","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":33,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"f838a050-cd48-4ad7-95d7-0e2e8a88cdaa","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":33,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"d6a98a30-f068-4a42-bdc9-4c936c75bc56","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":33,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"56b461ab-8d3c-440a-8ab6-007dc36ea913","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":33,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"56f3ceb7-49a5-4d5e-bcba-1890755be94c","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":33,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"a8f481d8-98e2-4200-8240-2ce5fb75542b","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":33,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"3abf2d45-73b0-4c9a-81ca-966e1b138ba9","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":33,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"192591df-04bd-4ade-8159-7851330de23c","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":33,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"3f08995d-1169-4df7-abb7-03e6590125a1","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":33,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"ded0fecf-057c-4bdd-a3b8-0876746bb7b5","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":33,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"3b0e64a1-00a9-45a3-8dfc-3f9036c57641","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":33,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"1ab30de9-6b79-47c6-9553-ce492e8a7304","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":33,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"acf1c1c8-ec6c-467d-be87-edd342b29060","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":33,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"fd13940f-36bd-4fe0-bc19-c47e17977ed7","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":33,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"908b4008-291c-47e4-91bf-dd1690f3b366","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":33,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"91c56988-c122-4459-8dd8-bbe49d92add6","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":33,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"582273b6-f6b7-4375-b1ff-cdaa8b116b2e","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":33,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"c1b33cf3-225c-4a0a-846e-dd17c278bafb","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":33,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"71e174e3-505c-4447-b201-0f5eec0eb1e7","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":33,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"332798c1-783a-4deb-9ebf-d0aa82813464","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":33,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"551a83de-fe6f-4422-8b74-11e5cdf70b5b","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":33,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"1c571206-b98c-4e79-a1b6-f577c34c12d3","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":33,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"f77c06d6-3636-4b65-b990-5e3ad0ac5043","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":33,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"1397bc94-c1a2-4193-82dc-d99224aa500b","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":33,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"de409f3f-6e9a-4941-8315-9c5e9f449f85","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":33,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"f56d0b8e-ef1c-4033-91ee-49008174fbc9","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":33,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"988b1f1f-c343-4cdd-9dd1-b0c375d75d63","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":33,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"bd35a455-1ad3-4fa1-8473-5839017f6818","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":33,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"087d0368-f9cb-453e-bac9-54bbbc958f16","block_type":"box","text":"II-3","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d67a9fff-7a16-40e5-bdb7-b619a3b85f3b","block_type":"box","text":"NM1026U-5978647-33/232","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"04573638-a670-4018-9bd9-26cdfd208b6a","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":34,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"2c9403ff-2545-44e7-99e6-82281deb8a71","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":34,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"1c773f67-ddfd-42e4-9360-3ae321f2cbef","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":34,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"49fa0570-a8f4-46e4-a211-248786ad60fc","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":34,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"a461e96a-1945-4273-b747-309319490df0","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":34,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"92820b6d-94d6-4f0d-b75d-e8ea8be7d317","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":34,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"964ab3b4-936a-4a34-bee9-1696e4e9e828","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":34,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"4aa5b0c5-cc75-4e67-b8f6-3bf6ac3ee4c4","block_type":"box","text":"Commercial Paper.","page_number":34,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"bde1ff94-7646-4d70-8bbb-59952a0506f4","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":34,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"895770ec-1b43-4d9e-9053-314cf0d11d19","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":34,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"d584a578-61d9-499f-9524-a453a964a769","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":34,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"53981229-f0f6-44d7-9b70-3b8ea5633b1a","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":34,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"5f26fb6d-8176-4f29-b2b1-360aa2ae1a49","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":34,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"ebfb3dad-8744-47c8-8c5b-dfbc57a68119","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":34,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"4ff179a6-43f2-44e3-bc36-8b86aa47e022","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":34,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"37ccd643-7070-409b-ac7e-f3a370d19d4f","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":34,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"c9e2f968-963e-47ee-8aec-7a6173576e58","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":34,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"4280a4ce-986b-4892-873b-928dc8688dc1","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":34,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"5a8ed5fc-ef27-47e0-8b9b-5af2870f30b8","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":34,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"c313da7d-7095-4797-8ef5-2165706e74fa","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":34,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"b8691478-6713-4783-9d68-a877c211e3ca","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":34,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"6e644c9b-6cac-44e0-88e3-f9a14424720e","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":34,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"32413734-a284-49dc-9063-e31008fa6e02","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":34,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"36170a56-394b-42d7-b44c-fef48f9db98c","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":34,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"12e90e02-117d-49a6-bf02-155395d4a76e","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":34,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"375a0ab1-8e4c-4715-b7eb-bbe20e3a2ada","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":34,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"0b8205ff-4dae-4fb9-81d6-2d6afb1fb2bf","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":34,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"740ec1b3-d100-40be-8dc5-9b7bbbe10158","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":34,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"e0e2e35f-d9ad-4559-8d41-3a65a2b9b57a","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":34,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"9ea6a0d9-faed-441b-b4b4-df4c8657fc96","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":34,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"4c6f2e1c-2354-4dd9-9237-96850878a1b8","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":34,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"53f41f7b-5b4c-4064-8725-51a240456d41","block_type":"box","text":"variable.","page_number":34,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"59ac2f69-f36c-4365-8d3c-a14d7a672c29","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":34,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"354e0a3c-efbf-4807-98bc-9665cf97e174","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":34,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"6994494b-ba0b-4bc7-a4fa-b54ea626ce6e","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":34,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"2a6ece40-94eb-473a-895c-a14d367c644c","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":34,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"8bc2dbaf-4619-491d-863e-1005fd3b0dab","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":34,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"0f3c3e45-9e4b-4641-be29-c17b583ec133","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":34,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"63cf661b-fcd8-4f30-95c8-917c7ae1d921","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":34,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"6198c803-23fd-4ec5-b5b2-42bfc20a569f","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":34,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"ab92a5dd-5ec1-443a-8865-0118e3507a01","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":34,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"13a3b1b2-02bd-44ff-b36f-ea6ea1de6317","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":34,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"1f556705-ce9d-4610-a600-37012be69a8b","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":34,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"a0f99671-05f4-4655-92b2-cdc10f9cc818","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":34,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"8cc02be1-af43-4898-b2c5-596c15893285","block_type":"box","text":"correlation with stocks and bonds.","page_number":34,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"45f2dad5-7c24-4cfd-b787-63dfd4dba83d","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":34,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"01978b3c-37f6-467a-939d-d16a0d5049ad","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":34,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"a610226a-b134-4176-937a-60d96929af50","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":34,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"9310d337-1c9a-4510-8e4f-e6f90a74e1ae","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":34,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"37355d22-0ebf-4294-bef9-3df5f42a5272","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":34,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"1d690b4d-4d74-418c-a214-70daa920121f","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":34,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"e4b41f15-7d46-4963-bdba-39510ae16ba4","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":34,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"815c5785-6efe-47ae-8ba1-739af7084a26","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":34,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"e881aba9-ad83-4028-a864-5d8f7cea5088","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":34,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"e56e53d2-1e25-4d9e-9b08-05588d970bdb","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":34,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"8488172b-1c9f-47f6-97fb-869f3676fd65","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":34,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"8da73ad7-3181-490e-b1ae-dbdfd21bcaed","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":34,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"241dfa14-7711-48bc-9b12-9baead4e74a0","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":34,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"cbcbd045-d037-4c85-95a7-c41bb170eba6","block_type":"box","text":"II-4","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b08641dc-2b57-476b-8465-df0a11f3f50f","block_type":"box","text":"NM1026U-5978647-34/232","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3b5e5830-e2a9-459f-b1da-e4cad9703e1f","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":35,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"9555882b-f2d5-47e3-9cd1-1286dd76379e","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":35,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"883a403e-9830-4d90-a5ef-c2b730fd25d0","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":35,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"5034d537-da58-47d0-9056-bd4e08a077cf","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":35,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"92140293-df16-45ba-ba39-830fb6cf5f7e","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":35,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"05ea3447-944e-46b8-8c4b-f62b5f142b1b","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":35,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"a0b324af-6963-4432-b4c1-16c497a272a8","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":35,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"d7415c25-057b-46de-9eb0-691b588a329b","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":35,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"c15b1f7b-e83b-45ef-9301-bb3e829002e4","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":35,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"3a36d0d9-965f-4f7c-b8f6-86624f9e3d25","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":35,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"42a7f518-cf2a-4941-a35f-90ae85651a09","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":35,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"05de2d34-c2b0-4c10-8947-3a830b6079dc","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":35,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"d2445f07-d3e1-4bb0-bd66-5d57b045bdf9","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":35,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"517afdfb-8510-403f-a722-515ee7687d3c","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":35,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"333d40e2-7088-4c25-bef7-068f03e60e17","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":35,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"3c0fe525-ece6-4dc6-84b4-83f8fa3db6bc","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":35,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"c6093c38-3d59-429a-96a1-4c1833b1f656","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":35,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"b9459d63-2499-42a8-9e44-e48a2ed856bd","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":35,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"bc63d7e7-ef41-432d-9ced-69e18e912507","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":35,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"ca535ee2-e9c1-42f3-8071-1c269f69400c","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":35,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"53234827-f50c-4b8f-9bf6-1afb0edc7548","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":35,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"a90eefcf-8ed2-417b-92bd-c6c653027f45","block_type":"box","text":"the Manager believes are relevant.","page_number":35,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"b2782bc6-fecd-4ec5-b0f2-8b48337a87c7","block_type":"box","text":"Limitations on Leverage.","page_number":35,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"4813e78e-50a9-4877-b781-ee93a59d6a59","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":35,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"0ede0cbf-ff3d-43c4-a7dc-5d9000ce305e","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":35,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"d647c59c-5cbf-4b09-bc17-efd169a0e1d6","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":35,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"121f4243-3fe9-4920-b173-e070dcc12ee8","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":35,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"fe15af4f-6dc1-4604-83c0-05fa0d77ab99","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":35,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"790d9b97-77e4-48fc-aa96-f1c8dbd066d9","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":35,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"3f4998e2-7276-4eb0-afe4-a46a89d1f58e","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":35,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"805150a6-1e83-44bc-a605-bb0e1b2f6ea6","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":35,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"39a1d2be-7f67-4e88-96f1-dbaca701e6a1","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":35,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"2ca5b21c-f5b7-4336-8ba5-708956f569e9","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":35,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"489c6679-4ed0-47fe-975d-5c2e71cbf4df","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":35,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"c558a9e1-9318-4587-ac66-69d202d06414","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":35,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"ba7ef46b-b322-41d6-889f-b1b3f80d8e49","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":35,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"af56f696-a43b-46a4-b9ce-dd952aa8f775","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":35,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"c7695822-68c9-4780-b18c-41edc421cd56","block_type":"box","text":"Counterpar ty Risk.","page_number":35,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"26591351-2a80-4795-a245-36a4ef620286","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":35,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"bac3b1a2-5d81-4274-8522-f6120553ac50","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":35,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"1bdca2d5-9d52-43e9-9367-4a4cd8d0e0f5","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":35,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"6587fbff-e5ce-44a8-a38a-d068c3fab3b4","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":35,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"9ffaea29-6ddf-4f45-81ae-6be828bbcb77","block_type":"box","text":"e.g.","page_number":35,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"0958eade-7d27-4e48-bf9b-f6338a2c7604","block_type":"box","text":",","page_number":35,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"e242dfd3-2439-4e1c-8045-eb6d567324f7","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":35,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"a612ae65-f41c-42d7-b514-224641f5afbc","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":35,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"7c6f7297-5ff4-42b1-b3e1-9ede37a34a27","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":35,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"c016cbf5-4da1-4abf-9199-38f615bb2e7c","block_type":"box","text":"obligations under the structured note.","page_number":35,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"5a8a66dd-bd06-4d43-9d94-0bb6044f5de5","block_type":"box","text":"Convertible Securities.","page_number":35,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"eeb7c3c6-6f4c-48bb-b622-d3c49770087d","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":35,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"04472383-8274-4c7a-ba26-ff4b17700f1b","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":35,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"481aea01-66fa-4055-82f3-d7552eafd83a","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":35,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"c03ee7fa-0215-4a91-81eb-30288618aa6c","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":35,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"68cd3cf7-a736-45a3-8a13-bccde0f0abc5","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":35,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"56268834-cdcd-4e10-8b73-6c50e26802f5","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":35,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"cfee03ec-2e56-4591-abe9-7620fe9b3264","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":35,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"25f2f183-1652-42bc-ac71-7c5d38f9b187","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":35,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"1d737bbb-d262-4f13-a556-42c7e81387f1","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":35,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"03f584b7-5c7a-4a7b-9511-c88f895bdcb6","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":35,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"ae39d073-fa40-45f6-a9da-a20e2e6f885f","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":35,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"a8d3ca21-8683-45e0-8cd0-e877294aa70c","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":35,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"381ec6c1-9967-4567-a734-bbcabb6c2b6a","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":35,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"3c011061-f18e-40e3-8090-113eb23e76ea","block_type":"box","text":"II-5","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"59e9e4da-ec74-470c-875a-73a84606c0bb","block_type":"box","text":"NM1026U-5978647-35/232","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f743836c-eda1-48db-8991-1885962f5240","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":36,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"e7c86265-0b4e-45f6-bd9c-f6537959e1c3","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":36,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"8f9466ee-eb9d-4a3b-860d-cf650e7d5885","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":36,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"f0b798e7-e383-4e66-9db5-fd9dbdca5438","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":36,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"4ba1f3c0-cedd-48ee-b8cd-315f8a1ee9de","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":36,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"a44ba5d8-110d-4e63-9fc2-b69a0a5b9bd1","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":36,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"b963e14d-ad35-441a-8ec2-8eed4670c1a3","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":36,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"1fc71ea1-1024-4ac0-8284-f167689ad68b","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":36,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"3a4f31a7-3683-489c-84ce-81171e439c12","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":36,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"2f52fd08-cbc4-4359-bb89-8272ef666274","block_type":"box","text":"things.","page_number":36,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"e3805cf4-1a5b-4e49-9ade-7f4f35ad4b23","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":36,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"0c92a173-b260-4dde-a584-ff5223689589","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":36,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"5862eaee-f457-42bd-a13d-4904156b7972","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":36,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"6d6bb504-86e2-486e-a6bb-709275052fce","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":36,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"9079b51b-893b-4994-98ac-f61f253db209","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":36,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"244c65a5-3e1e-45e4-8c6a-65a3f0abd038","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":36,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"e41b4bc7-30a7-455c-8ed2-f09025e4a127","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":36,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"a31cbf62-3669-4649-9909-14558c2cb34e","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":36,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"1687aea7-f05a-4cdd-859c-79966b97184d","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":36,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"519b612f-1bf4-4c57-937f-de4618058fd2","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":36,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"ab5c0fc3-6c83-4a49-affc-26379f21c5af","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":36,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"7fda7958-4208-4452-9080-84eda969e037","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":36,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"ca202aed-69bd-474e-82dd-572f59516424","block_type":"box","text":"i.e.","page_number":36,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"c2e682be-97c5-41bf-894f-f0cdb9ad0e95","block_type":"box","text":", strictly on the basis of its yield) is","page_number":36,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"cb857671-e690-4e49-868f-f61dfd300862","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":36,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"6d1275be-a505-4e80-bf3d-1fa7e5c012b2","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":36,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"c5b09807-c1b9-4786-8bc0-e5830213e8cb","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":36,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"67b3e9ee-f071-4adf-b29e-9fe2e696a8ab","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":36,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"219caa3e-e0a6-4459-901d-695358017444","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":36,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"553d8089-34b1-4022-956b-b01623338f25","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":36,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"2d63e64f-df98-4de3-a693-9b0b768ccdd2","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":36,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"83931039-3a92-4bb4-a261-3a4b054b2aac","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":36,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"de3d4200-edc0-4b08-aa42-0d7fd7aa4660","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":36,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"7c32e78d-6191-44a2-97c8-7100ab90ec98","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":36,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"0b427c81-e341-4527-9d1d-8fafa38d611c","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":36,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"a9fd88b5-8dbf-4070-b5e0-b66b835498ea","block_type":"box","text":"than the securities’ investment value.","page_number":36,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"d87fb499-7299-4511-a58e-00ea3c1dcb00","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":36,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"11dcc6b1-3af4-4bca-abbb-55f048e7a22f","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":36,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"2e90e52d-4fdb-425f-acf7-bd067dd7fac1","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":36,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"fdbb2d7f-f695-4d8e-9b5e-34ed5be186bd","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":36,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"61cea231-1579-4d33-ba56-6de13b54c881","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":36,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"9b72001f-a38c-4e10-920f-e2a748dc6bf6","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":36,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"3e5c1e05-9b6b-42b8-bd72-16a823511712","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":36,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"fe8a7468-7e85-4055-ba4a-beba2254528a","block_type":"box","text":"security under cer tain circumstances.","page_number":36,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"86e828c4-9d3e-413b-818b-4cf5f6447da0","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":36,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"63fa6443-8033-4396-a205-e14a22144768","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":36,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"1bd2dc2a-7147-439f-a2a3-81b64e9bbbed","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":36,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"90964460-d94d-4d48-a35d-9d66446a3681","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":36,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"dad09f8a-d095-4f7a-8226-6dc5be81125b","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":36,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"023dba01-075a-4a70-8066-474e7b08ca80","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":36,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"9d259d9c-910f-4bbc-bd78-5ab9b70546b9","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":36,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"5d8071af-d58c-43ac-8116-fa2a72eed863","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":36,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"b737a183-0376-4b30-910d-935144c59d30","block_type":"box","text":"i.e.","page_number":36,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"e2c4ed32-15c9-4fce-85df-fecd88cc6873","block_type":"box","text":", fixed-income (“fixed","page_number":36,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"e51f5f53-8406-41df-9bab-7a1854cc9fa9","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":36,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"62ccdd20-52b8-45bd-9321-adf899c544a8","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":36,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"5e1514e2-0b32-477d-8d2e-d0498925ecd3","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":36,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"605f6764-7c2a-49a5-8ed2-c51d6e523a9a","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":36,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"969e25c0-17f9-4281-b293-a3cf25ee514a","block_type":"box","text":"II-6","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"94f15434-d24a-4920-bad4-77c917e5fb85","block_type":"box","text":"NM1026U-5978647-36/232","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a772f857-7100-418e-af91-c6f97052243f","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":37,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"ea38d4d9-8286-4c54-8124-840c11ab544d","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":37,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"1c76e828-5168-4eb6-8f09-32a1b0fe4c18","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":37,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"6168fe55-db24-4bc1-882f-dcfb20d429ac","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":37,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"e5076dba-ad50-45cd-a284-ebaf671c1fea","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":37,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"851a1262-f8c0-427f-a8eb-470403714a3c","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":37,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"788e2313-1187-4393-b544-a4aa3b282f05","block_type":"box","text":"component.","page_number":37,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"6474545a-91fa-4652-a905-f50ab3df2b66","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":37,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"ac60cfe2-7a5b-46d8-822e-69d288932725","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":37,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"97979d3a-1cdb-41b0-bbaf-617dfa3f2853","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":37,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"1f55013e-699b-4aea-ad53-0ce2add8fe3c","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":37,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"72cf7ce6-75c0-4911-843a-8b9a057b7100","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":37,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"8e0c9f2a-b7ac-4bff-b89f-0c81b3242c7a","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":37,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"cf9b1940-bdfd-44e4-a91f-44045551faa1","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":37,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"cb66a4c1-e6b2-40a6-9cf4-8b79d28c438a","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":37,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"02cd1760-b746-4b37-a4b9-96980cdcfb11","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":37,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"23ebb758-52a2-4e72-b4ae-5a64f4d8a495","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":37,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"e5612f9e-920d-4f89-a9b2-d843a74a0f4e","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":37,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"ba745ab1-4ede-43eb-aeb8-492b1e77f9bd","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":37,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"2ec6bcfb-4ca0-490d-91f0-8f2c8bb12c26","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":37,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"6021d070-4c81-4d0e-b587-56960fb590ef","block_type":"box","text":"favorable market conditions.","page_number":37,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"3dd2b1b6-5b63-42ef-bb7b-4bbdf851d030","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":37,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"55850037-24dc-4585-9f9f-ebad74af7b88","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":37,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"60177a89-3c05-4060-bee2-51c54a1b8412","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":37,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"a50f9bcf-4dff-4310-8d59-e8bdb21194bf","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":37,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"bf274e7a-62c2-4bd4-90e0-97332962747e","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":37,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"103472a1-d09c-4690-888d-6f63cb1587ed","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":37,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"7b79498a-c6b9-4178-a5a9-8e1ed073a7a1","block_type":"box","text":"Corporate Loans.","page_number":37,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"bbd95a0f-1bde-4b8b-869e-1ad6265e274f","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":37,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"165e8d17-6fe1-46a0-aabf-dba606058e4d","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":37,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"773aaa89-244f-4ca6-a789-ea3564236c96","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":37,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"0902d0fb-f657-4150-accd-d33351dd5e58","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":37,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"4871efe9-4634-4d60-8db0-b9dfaae9b711","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":37,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"f1b270e0-492f-4c5e-99b4-769e1adc3d50","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":37,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"63ccd0b9-9583-4043-a1f5-029fea7be15d","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":37,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"71eb1372-cd84-4e99-83a6-8f826b47220f","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":37,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"e6552808-2f63-4ee5-a94b-5db68769fed5","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":37,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"d0f6551c-6c41-4836-87f6-db317d245a78","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":37,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"51f4d843-36a7-4574-b479-13c6383d0b2e","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":37,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"5948bdb3-587c-45d2-8b05-a4628b0e0e0c","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":37,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"1028d03e-4624-4cf5-bb54-f4ea2bef2cb5","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":37,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"c5509f16-1d55-4651-8ca2-5a386fc23823","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":37,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"adabf0ea-1488-4b1c-9c1c-70069f97dccc","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":37,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"896108de-9ee3-4052-a62b-495aa97b814f","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":37,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"4a0fae61-38ce-428b-84ff-8ace74d680c2","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":37,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"34e5d291-c1b5-40b4-a034-0d7516554602","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":37,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"86cc41fb-f2ca-425c-9501-9c8fadd5f623","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":37,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"cdfcef67-4189-4b05-a9c5-284c9e0d783e","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":37,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"86b59869-28c3-4eb3-aed3-94e10d45cf0d","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":37,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"edac6446-5ee0-4d4c-a1bf-c407bf916869","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":37,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"18383dfd-dff5-44aa-bf57-732b7cd2c2de","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":37,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"e3544459-451e-4262-be62-7b9b06674ecf","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":37,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"30389164-8386-4c9b-821f-a774c71a8bc3","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":37,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"1af2635e-65ee-456f-a141-a01d99c5ba0d","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":37,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"16af582f-7235-412a-b140-9608b1d573b7","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":37,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"f77ff332-b35b-43c3-94a4-14af8d91db58","block_type":"box","text":"of the borrower.","page_number":37,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"c9edd4b4-081f-4f70-bd29-8408e4d55652","block_type":"box","text":"II-7","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"fd8e1e93-9959-43b1-83b3-623019b9c748","block_type":"box","text":"NM1026U-5978647-37/232","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7231e79f-8634-494e-9e8b-417cc62f4867","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":38,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"1692c206-ce96-48ac-91be-12081860055d","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":38,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"9e8c84c4-1975-4469-bc32-b5e055d1e7ea","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":38,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"b7803361-939e-4a14-b9a8-4bfb908c160f","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":38,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"0a3b8149-ef12-4304-84a4-a9befdb53b15","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":38,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"183bcfdf-6b3b-4692-97af-4c2d7d2733e3","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":38,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"119bea96-16f8-4e30-aa7b-a98b54596b5f","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":38,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"20b91214-077f-4c3d-85dc-005af393233f","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":38,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"b6115285-fe3d-40fd-9781-b025cc281b3e","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":38,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"e659ec01-ff64-40ce-8c99-8c1a867ea413","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":38,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"95796f0a-0b93-4e19-94c6-75fa2f7d631d","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":38,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"2452dfe2-baa0-457b-b408-090595abfa92","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":38,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"986ca0c3-834a-451c-b8c7-365e3a3e1cf9","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":38,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"acc013e5-7a60-453d-b2e9-0569abce440c","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":38,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"7ce246f3-e64c-4bbd-a455-0c4418820b46","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":38,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"6573dbd8-92e9-4f97-8d26-8042f52909e5","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":38,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"a33cc983-3fe7-47f7-8dc7-d22d6eaef79f","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":38,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"40131ec7-ea43-4f8c-bcd9-d3aebb2948c5","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":38,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"c069cf10-eaa5-464f-b295-7f65436aa2a2","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":38,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"8b96dd36-f31a-4c1d-85fd-b5332db24ca4","block_type":"box","text":"state law.","page_number":38,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"2188336f-b60d-47b1-8c06-327ebc1eca71","block_type":"box","text":"Direct Lending.","page_number":38,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"ff90749c-306a-44de-bd80-58bc338697a8","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":38,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"bf5c73f9-c1f4-4a12-b4b1-eff9aec7adc9","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":38,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"b1ff1a0d-3fb4-4bc9-aa24-f45ea8f2e814","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":38,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"be439eb5-fd72-477b-9a9b-012a4f307581","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":38,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"9fa43eaf-3681-4048-8a63-a836815e567b","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":38,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"074b47da-b6e6-4a4a-bceb-1426e4b30d36","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":38,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"0ec44e51-510a-464a-9e09-eda873ad62d8","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":38,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"e79ae4be-fdfa-43ee-85a7-763120310ccc","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":38,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"a3f2f1d2-753e-424d-88e0-dbbd751371c2","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":38,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"e607ca4c-dfff-4857-a84f-83128a8645f8","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":38,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"147fa01f-3ed3-410e-a0a4-d2a3c5f16c4a","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":38,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"de35c261-f4bc-4a1f-b594-f233ca50bdab","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":38,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"62a6db47-ea53-4a29-9dfb-f987d9c60b7a","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":38,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"61150aae-4179-479f-9d29-b8bc819bf8e3","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":38,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"ca0eeab3-d6df-4c05-b09a-f6eb266566ec","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":38,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"cfc54db2-239c-47c9-a60b-2c362e3edbbe","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":38,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"32d7d3f3-e9ba-44b6-8e25-c8fcebc5135f","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":38,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"6cde4192-1060-47e4-ab53-acabca082c19","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":38,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"3cf1b330-e071-4607-b571-3527c512ce7c","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":38,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"b07cf769-0a06-4a30-b191-6e189f86a305","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":38,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"aacbc646-4b7e-4248-a7d8-6f061d5783ba","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":38,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"681341d7-03be-4d13-8a81-ab9230d3e030","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":38,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"b8aced3d-4d41-4eee-8e87-5522be2e27b5","block_type":"box","text":"Credit Linked Securities.","page_number":38,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"aee55e2f-8d7a-4a1b-a41a-2e3f4297ad76","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":38,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"d41b66d9-0076-4ca7-a2db-34ecee31032b","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":38,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"3e9b9fc1-0ed0-48f5-b9fc-c6ff2a25a08d","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":38,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"2a7004fc-e743-450a-9d8b-8515e2db90b5","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":38,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"dd2d75e2-2580-462c-aae1-e837275cb454","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":38,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"04dcf969-c7bd-41b9-8a14-907f11e4222a","block_type":"box","text":"traditional income producing securities are not available.","page_number":38,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"efcb146e-410e-4535-bd3b-80f4ab28b860","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":38,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"4742d3ec-1853-4b34-a376-e5d314901563","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":38,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"7b1a72fc-07eb-4f17-ae6f-12a2d82cac76","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":38,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"a0a646f0-55f7-4f69-84b4-0bfe442f2ecf","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":38,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"a41a0db0-508a-4cc5-adfa-20ac8b8f63a5","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":38,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"12f88fab-e65d-42e1-af06-72d40bd73ff7","block_type":"box","text":"II-8","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"05e996aa-48cd-4f1e-82c7-3546a27ed39a","block_type":"box","text":"NM1026U-5978647-38/232","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6556bd81-25c8-4fb4-a027-89175b671326","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":39,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"2ad8daea-b215-4f16-947c-354ee17ce2cc","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":39,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"15fc5e69-fa9c-4274-ab92-cf6c20e40faa","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":39,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"1d9c19d3-9a62-4350-be5b-28b04f9c452d","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":39,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"537020f8-044f-4547-b5a2-b1dbbd7fa2ee","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":39,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"1aa1a25a-e755-46cf-a327-3184a88aa9ac","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":39,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"aa6c9c3d-f842-463b-99c8-d8cc34069474","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":39,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"6e48f808-3719-4eb9-9678-927b0b15d2e7","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":39,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"b75b9612-aa01-4707-b9ad-ab1b68a3b56e","block_type":"box","text":"investments.","page_number":39,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"8a1d0af5-5ac0-45c1-9ec6-ead6c0485279","block_type":"box","text":"Debt Securities.","page_number":39,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"136033a1-bb58-4910-b830-d232cfd9b91a","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":39,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"a384a6d2-02a3-4c35-b5bb-e30357065497","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":39,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"e196fb18-dd75-4bba-b7a4-a673105d1edb","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":39,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"ee4721d4-3964-4cea-8c90-8e3090b73e4a","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":39,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"b6eb1f52-f22e-49d6-adee-0b5c377936b5","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":39,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"ce77d3dc-2181-4778-ae6a-ffa343ce43d8","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":39,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"ec33c3a1-7988-4462-8d4c-2bcad31303a2","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":39,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"30538ead-0ae7-41b0-ba28-43911d13d3d4","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":39,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"aac315f0-b33b-4a9b-9aa1-702f2a5de92d","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":39,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"4b8b4d5d-920e-40f4-9727-54163ea48e93","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":39,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"536ef2be-2452-444d-a55f-eb39cce56309","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":39,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"e32b832d-b8eb-4a0b-94ae-cc9c4f68c6ba","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":39,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"c4eb79dd-0c70-4eb5-8f1b-aed997e560b7","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":39,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"941287b0-f62a-42d7-8116-0017b24e7524","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":39,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"422c2a8a-55da-438e-89e3-d8ffcf114936","block_type":"box","text":"lose value. This is known as extension risk.","page_number":39,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"e5d5fea0-f0ad-4e93-9622-53a8b4efcdf7","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":39,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"8b519b9c-2e61-442b-990c-010839c19b6d","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":39,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"167f48fa-7c27-4e2a-8a7a-c95892a7d145","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":39,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"4e2e5cee-17d1-42d3-9e96-730229f6b36c","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":39,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"6903e5be-3c9a-40bd-976b-f71d7645d0a3","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":39,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"5d652146-e366-439b-9400-1d9a90df45ad","block_type":"box","text":"Floating and Variable Rate Securities","page_number":39,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"ca471871-edcf-4231-a1ef-ee5f59e4210e","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":39,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"f90b5e67-6a0c-401b-bc82-40d5a8108cf1","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":39,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"3dea5ad2-bd04-44b5-a431-f7bb744cf5da","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":39,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"49904629-413a-460a-a29b-9eb5d062a285","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":39,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"c6e4b3aa-f6a1-4c62-a2ba-6a5cad28125a","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":39,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"9acc3425-84ee-4209-b191-d1cf9cf7e06b","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":39,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"1ab7f843-ad23-4aed-8dd8-5d819d20015d","block_type":"box","text":"market interest rates.","page_number":39,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"48f00d43-e9f6-4654-af3b-37fa2ab3b680","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":39,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"054ee8f9-dc39-423a-a24b-f1ed5ca82dae","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":39,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"6daf9a8d-8a68-47b2-8114-4f6f607ef779","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":39,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"33adaae0-723a-411b-942c-2ae61a476e25","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":39,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"4c100779-00a8-4e22-a084-876085f2aa80","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":39,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"13563144-dae8-4a78-ad48-02b9de47777e","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":39,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"8cf66bc2-82c3-45a6-b4df-dc8f2bb93a53","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":39,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"3b0b99b2-c132-42c1-b48f-17290fdd9007","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":39,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"5f1789a9-9bb8-42a7-b660-32441ae1e7de","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":39,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"38d27245-1eae-493e-83da-eb10cee2816a","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":39,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"eebb6dd9-f9a8-4a82-b42e-5f13ef783579","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":39,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"70e7a1da-9f24-4812-b6c9-27e87eb628ff","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":39,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"36525c26-01f2-4107-9d72-ccd0cdad26b2","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":39,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"821786b6-5f6d-4aa1-bb09-7e348e3195f0","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":39,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"7b0fa255-e731-483d-8122-309e6f4616fe","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":39,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"5192906c-9f3c-4d47-82e8-8331703761b2","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":39,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"37b1f49b-af20-4a20-8390-047c83bee9a9","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":39,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"8f957c7c-5a1c-4936-9af8-1de8475ea18c","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":39,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"4e4087b2-2517-4e36-9172-c3f573515e68","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":39,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"0bd63f5a-cb43-48f8-a0e9-e73ff7cac33b","block_type":"box","text":"II-9","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1bb14dbc-9a60-454a-94b4-e46a52ed1d5e","block_type":"box","text":"NM1026U-5978647-39/232","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"358ed240-b01c-4b25-97ab-586b8359c0c4","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":40,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"5c88466e-b4b9-47a1-812f-754ceab67517","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":40,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"85fb765d-9ac6-46fc-9c1f-e59c2d05e285","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":40,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"d668a6d2-f575-4653-929c-abf09e9d3654","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":40,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"02c01f69-7bef-4f54-b271-12e8c777fc67","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":40,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"70971295-127a-4ce4-97ed-45c4e7e11a65","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":40,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"23b389f4-bede-4df7-96ad-d335a8256b70","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":40,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"182f2292-2cdd-436a-92b2-7a4799544fad","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":40,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"857f2348-035e-4bd5-b25d-ca98db754363","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":40,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"331ef50a-bb85-49b0-8365-d00ee733aae2","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":40,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"49c69e9d-5ef7-40d5-9310-7f1859bae72c","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":40,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"6ecdc980-82dd-400b-9a55-754c3f787812","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":40,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"35ebd0f5-d5b5-4cbf-af45-bf701c7bb47b","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":40,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"015b6d4e-81c3-428f-8b9c-2b4c21ac8781","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":40,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"fe13ec7e-d522-408e-8a3a-76ae2ab5543e","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":40,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"2dcf5091-ae24-47ce-9de4-f90e95485de8","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":40,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"3b316a3d-a0d8-4ed1-aede-ebd2b4651d36","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":40,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"e576f380-0565-40ec-baa5-f5c2934d7af3","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":40,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"fe11ed03-b1ab-4b9c-abe2-454206c316af","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":40,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"5ebab2c8-1237-42fe-bc00-69a1cc543966","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":40,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"6114cd55-af26-460f-9878-9c0b8f3a1da9","block_type":"box","text":"United States.","page_number":40,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"e134cafb-578c-4d33-a7a6-ec5ed32897a9","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":40,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"51e88ae1-a2dd-4674-ba2f-487f3e37bee5","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":40,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"46482373-c3c8-42c2-96d2-baca4df01976","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":40,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"3ee344b5-d975-40a8-b9b8-daf4ad04adcb","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":40,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"5d62267a-d119-4f96-86c5-a8011f717ef1","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":40,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"3aa3e2f7-e261-4d1c-9b09-134452d43c20","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":40,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"1bbe8a8e-6204-460c-b622-70bf6bdea29f","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":40,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"cb54e029-7c10-404d-8a4a-f164487ce958","block_type":"box","text":"i.e.","page_number":40,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"2014ae57-1ead-4ef8-bb6e-c39d4a28b4cc","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":40,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"a878cb05-6116-4c70-a3ca-48c62b96961b","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":40,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"9b899861-da8f-4938-b7d3-9fba3bfcddb6","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":40,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"f4ab8fa0-fc58-4585-81d7-04f9b78bc168","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":40,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"ea928621-1e9f-44be-86f5-975328a06195","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":40,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"47f91eff-cd0d-4e28-8153-1c1160d8e1d5","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":40,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"bbf541ca-e5e6-4c21-a314-80f58eadb2d9","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":40,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"8b6d76ae-c4ac-4849-9391-dd378e47f4ec","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":40,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"6929626d-8ba8-4ce1-b43f-295f2ac83d34","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":40,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"e51fa45a-1e85-49e8-9189-9a5a53e87351","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":40,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"5d344c71-db91-46c4-9dbd-ea664a3fb621","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":40,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"b342460c-ec91-4909-87a0-746ad3e71508","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":40,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"c66a5836-98ef-40d8-b7ac-b0d6bef521a9","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":40,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"21427467-189f-41b2-a08c-4d29dac5ebc4","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":40,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"f0f19e98-913d-455a-a373-156d95eb267d","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":40,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"d293700b-591c-48a6-b1c2-a825fd23ed26","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":40,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"a7140d86-870a-4ddb-95a6-6cb4c43de709","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":40,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"67648a44-5846-4e28-94da-fb063fdd128d","block_type":"box","text":"risk than higher rated securities.","page_number":40,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"d172b337-9c1a-46b3-ae6d-8b663a5cffda","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":40,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"9d5c8fbf-e7cc-4082-b1d6-48a453a5c5bd","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"c390826c-af55-463f-9228-15671d693cb4","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":40,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"19cfc147-6e42-452e-b46d-f2277084b629","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":40,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"701e7c9d-9a4b-49ee-a748-45c5d16717ee","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":40,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"72475503-8a14-42e4-99a4-84bbbf3745c9","block_type":"box","text":"unavailability of additional financing.","page_number":40,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"58c4fa38-1188-4e62-827f-45f856f8ea6c","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"a340a912-ef8c-401a-a7cb-5e23a786accb","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":40,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"a97bacb1-7cdd-4967-a074-ffb813a04979","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":40,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"2adb5f43-ba3b-4398-9dbf-ac0e5c33935f","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":40,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"e2dc281f-4d9a-4424-8c65-45ab0d51c7fa","block_type":"box","text":"II-10","page_number":40,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"910705d9-90bf-4a50-bcad-13b4a3d43fa7","block_type":"box","text":"NM1026U-5978647-40/232","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"01670b5a-84da-4053-83f5-ecca84fbe1b7","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":41,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"118e4b5a-56d6-4d94-9331-3b2edac45b2f","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":41,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"ed3024de-7b42-4cc2-b600-8942b48b1b73","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"05ef5483-8cc9-4d09-920f-f76ed0898f14","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":41,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"1e733868-dcb9-41b1-a422-d931f9062310","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":41,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"9a27ebe2-056d-4b08-bfc4-254b5fb483ee","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":41,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"7e1bcf09-730b-4fda-9137-d94cf4166cd2","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":41,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"c1fb6372-7703-4cfd-94ae-5d3a3fb79f80","block_type":"box","text":"investors in higher rated securities.","page_number":41,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"814a1612-fc53-4c77-ac48-e013b6c30112","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"9d99ec9d-f959-4e4e-bb14-650ad0888eca","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":41,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"052ac641-fd8a-4362-a533-4840614ef49a","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":41,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"2d15a65f-a2fd-44b7-979e-dba1420dbaca","block_type":"box","text":"lower yields and may lose income.","page_number":41,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"e1266a56-b7f4-4588-8d38-c845665b8d83","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"aabb5b1a-017d-46e8-b2e6-84e2d4a4fcf2","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":41,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"743b1ca3-fdca-402b-8b7d-73e7b6f4f96e","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":41,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"891a240c-41c3-4f4f-9d23-96d6022e38e4","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"5021ef5b-3fd9-4fbc-9c43-9a9f336da82a","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":41,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"0a053d55-8406-48d5-8bc3-81f2bf61be6b","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":41,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"ebbda15f-d0df-4565-9245-cc7346bd19c6","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":41,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"1afa9860-444d-4369-b69e-cd8148728891","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":41,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"e7f1c690-3e07-44ec-93f2-01c8bbea882b","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":41,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"ed69e459-e0fc-4025-a89a-31d848714791","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":41,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"921be946-f1f5-411c-bb96-90cb1712be35","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":41,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"765e84bf-a2d1-4a46-a24f-ca505ff0cb08","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"b09cc1b4-61ee-4bc8-9064-f417a5ae3436","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":41,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"e1a5ef1a-9d3b-41b2-8721-78ce227e737d","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":41,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"b29e8a33-85a8-42eb-b018-86ec08e46dbf","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":41,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"fc5b68ce-5706-4cee-b1ea-02a79086d5b2","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":41,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"b59d991d-bed9-4a8d-ada8-b634a0133df9","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":41,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"89d65585-77f4-4303-a06f-d4641353c072","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":41,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"8ace565f-d31b-41e8-aa1d-4c46acb5b5c9","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":41,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"0e2f5435-6401-4038-9f0d-6dce85b3c550","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":41,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"a8ac31b3-5ab8-4d06-9b2d-8d4b2d7ba150","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":41,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"45b17a80-f690-4509-81f9-a0f458e96e22","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":41,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"05f1b7d9-d027-46b0-9cf0-8a913c39bffd","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":41,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"7515057b-f233-48f7-bcb5-bee06514fd91","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":41,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"8dca6b00-42fc-4593-a1b9-d55bc3c9e175","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":41,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"a9bc2153-3111-4d95-91ef-b0d955c4a8f6","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":41,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"13f11964-c5a7-4941-87c5-f7f593950aa3","block_type":"box","text":"role in determining such valuations.","page_number":41,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"3690f6ef-f334-44e8-bbb6-7ece5b0eb969","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"8008a382-b4eb-43f5-8217-95b8644d1a04","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":41,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"dbaee225-e03d-4836-90e8-b8a72b4ecec9","block_type":"box","text":"a defaulting issuer.","page_number":41,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"6b370c80-1b0b-47a0-9895-1799ca4297f7","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"2fa6fa5d-1794-4451-8772-f547ceca424a","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":41,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"2b657f36-2304-40ea-a0ca-3f3e48c9e3a6","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":41,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"2e3c39b8-462c-483a-b248-e1389eca2035","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":41,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"5e3fa4ca-0784-46bb-b9c2-0dc446bc3926","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":41,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"14ad1876-8f32-47c1-98c7-a6740d25c360","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":41,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"47fcdecb-d693-47ae-858d-a5a238305174","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":41,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"6c6784b2-a101-4ac6-a3a0-45a32df3094b","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":41,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"4e93d175-5c10-4509-afff-bc4564e95641","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":41,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"a7a950ad-a7e8-4be7-8dec-69de94519ce5","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"f145f141-d42b-4fb2-98ea-948c4aef3a62","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":41,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"82c0d23c-ac50-4805-8cc7-ee093f151a2a","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":41,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"5028b851-948f-4e8a-bd8d-b6eb905d9949","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":41,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"3d2ef97e-aa5a-4fa8-9272-c0abb19d066b","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":41,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"867a6249-1f14-4c91-9491-65cbf33e22b6","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":41,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"297f1eac-db05-4ff0-886e-6db41232cbb1","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":41,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"8e5752c1-9cd4-489e-a415-30da55d5ce21","block_type":"box","text":"higher-rated securities.","page_number":41,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"9130968b-c67c-47d9-8b21-a1ceadd62cb1","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":41,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"168c88c2-be27-49df-ba59-a77c7ac06939","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":41,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"bca6e47e-7dff-479b-802b-c4f0a08c2fa1","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":41,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"f8833b4b-560b-4784-abef-12514274fe78","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":41,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"d90945b4-4260-457c-94f9-f1669f653021","block_type":"box","text":"II-11","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cdf5656e-a635-47c0-b695-39649d19ba39","block_type":"box","text":"NM1026U-5978647-41/232","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bc61e952-b6e4-450b-8968-5c0adbe0367d","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":42,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"a9287bfa-79ed-40ed-be28-0a3254e2644d","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":42,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"3c4b0d70-759a-45f3-82a6-37e4c808cf45","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":42,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"ce677dca-7322-4d45-8482-fab321881ef1","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":42,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"0215b8e2-1916-464b-a3d9-52cb3fc1d0c1","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":42,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"8e143e9a-684b-4b79-86cb-b6391f1e6c79","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":42,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"5eaaa2ff-7107-4a1f-8f7b-3bccfe453a00","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":42,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"48ad8110-a74d-4900-8cdc-05d41be1aa22","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":42,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"4137670e-db67-4cc5-a6d6-b934c84a79b5","block_type":"box","text":"Mezzanine Investments.","page_number":42,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"60b12a64-94e7-4c49-b3ea-682c1c106c19","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":42,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"8be163f7-aac8-4e2b-9562-c4fd3043bf68","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":42,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"c3955aff-2525-4569-b9f5-086ad2eaa0ad","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":42,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"d13501dd-bab9-440d-8746-f2ea1e94c87f","block_type":"box","text":"e.g.","page_number":42,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"53eecdf9-3233-4acb-bd94-9480a8d251c4","block_type":"box","text":", with","page_number":42,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"32db7008-99d8-4c81-8c17-ca12cd04ec98","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":42,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"eea65af7-6be0-40f5-8093-2ea8127733ca","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":42,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"c1e864a9-4a8f-45d8-a05a-2ba1e2f050a1","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":42,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"676234ba-d8ab-4f6d-9611-68d6f9197eaa","block_type":"box","text":"other obligations of the issuer.","page_number":42,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"8de6e583-4257-414e-a8ec-52b0c7db98fb","block_type":"box","text":"Pay-in-kind Bonds.","page_number":42,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"c4e08aa5-2fc9-4e1b-9bed-c273d195ad46","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":42,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"c6e27e69-ff92-4de3-8e8a-3d3a0eeb5ff8","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":42,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"bc39c975-3554-4c3b-8f3e-e7d7162341da","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":42,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"1d6b64f9-297c-42fb-bab9-23e914212139","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":42,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"9a158688-f9d1-4c92-97cb-56e4e1411ff1","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":42,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"2f4f7f1a-644d-4c59-a3e3-d9cfb4c6bf96","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":42,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"529a7cc0-316c-44bd-94d2-b40f637bb27e","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":42,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"1517e638-0149-4c26-b676-cea44f3b54e7","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":42,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"74bd8cb9-e3a5-4ef5-9fd4-1d3a729401e9","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":42,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"77fcd8ce-e77f-4429-83ce-e5cfe5e7ed2d","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":42,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"71bf8f88-d016-4af2-a154-39c414101fb4","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":42,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"93e02f60-f663-4702-9fd6-298949346b68","block_type":"box","text":"Supranational Entities.","page_number":42,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"47e358de-ddc8-4bd5-83cf-94045b6b1f4c","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":42,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"05b401bf-ae0d-4b73-a1e6-a6c4d16fcaa4","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":42,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"6bd66119-0e56-4169-8d81-afbe50f4ce22","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":42,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"f96c1d0a-4c67-46b6-b019-8ad9151cfad3","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":42,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"fe030ef6-0772-4387-823a-535d3a67c528","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":42,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"13ee6328-0c5d-4ae0-afac-57c6dc51f68f","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":42,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"b4be529c-59b3-4e18-a899-8c1e53ed8f1c","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":42,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"e92113f9-4bfe-4d3e-95e7-238f7c9291ca","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":42,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"290523a2-9772-4201-a216-1c265af1ab5a","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":42,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"6d9eb330-549f-4d34-ac7b-f112b06da2aa","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":42,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"1a5afcb9-9463-4287-8a1d-c3fcb69051dd","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":42,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"03175009-9cf9-454d-8591-fc8230c2dd87","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":42,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"6d78b5ec-e6ca-45bb-b819-017d0220c694","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":42,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"6ac2fc66-4252-45a8-be09-2d08c408468e","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":42,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"3f4b3bbb-636e-4c7d-b164-92b90f751d4b","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":42,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"5832c369-79d5-4324-979b-31c26a599892","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":42,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"93a93455-079b-425f-ae2a-0452b9c55275","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":42,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"3d70b2be-4aa3-4bcf-bb9e-68165c6fa06e","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":42,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"257d5a47-6f02-4777-afb2-1cac91217e5e","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":42,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"8d765cfb-0e39-45a2-8ab8-eb05239aba9b","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":42,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"742660c3-62fe-48e9-8cbf-72f5cb277c0b","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":42,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"ec569d13-089d-46ee-91c2-bef4d627e817","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":42,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"5374cbcc-278b-40f8-8bb8-26ff06b70d1c","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":42,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"e8a480e3-9073-4663-98fb-4bec0ebc256c","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":42,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"4662adf4-cc73-4d93-a8f6-bd1446be4588","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":42,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"bd454d28-9b3a-4dc1-9d86-abcd5cbdf7a1","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":42,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"c826507f-683d-417b-8a63-cb6c72559310","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":42,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"d5e0ef15-064f-4008-894b-44f2015ed9d0","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":42,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"d8524154-9329-40f2-add5-866ccf08bac6","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":42,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"5d24ee4b-8d70-4c23-ae93-59737a854acb","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":42,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"ceeeee29-4e57-42fd-aed2-cc27604bc509","block_type":"box","text":"II-12","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19f68b6a-dc88-4081-a027-9fdbcf765b80","block_type":"box","text":"NM1026U-5978647-42/232","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8f2f1374-5f9b-4cc9-87c6-ccc02dd77e47","block_type":"box","text":"Derivatives.","page_number":43,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"b1eadba6-bcbe-4d29-8462-f83022572b8f","block_type":"box","text":"General.","page_number":43,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"c9fbd211-4dc6-4474-b61e-6c84522cc732","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":43,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"4af0b409-8985-47d0-bfbb-8db593576b6b","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":43,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"b82068ce-a267-4904-b8ca-df99f4d4e50f","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":43,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"a95ff984-ee38-4369-b490-dcff14980071","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":43,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"5cd02ddd-e124-4137-b5f6-4f8bebecb97a","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":43,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"743dad75-a194-4145-9e46-822fa8923b8c","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":43,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"db1d1c62-24af-447a-add0-071a4e674fec","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":43,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"6b9e561b-5f3e-4de8-8531-3ab81d108752","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":43,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"16ba7424-be22-4f1b-be0c-0016ff70b22e","block_type":"box","text":"i.e.","page_number":43,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"be34b680-e184-4749-a21e-40eceacddde6","block_type":"box","text":", the payment","page_number":43,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"778afcfb-f4f8-4bf6-82f1-18aa21e0a51f","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":43,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"07a584ce-b87d-4958-9018-d6db4ff8e35d","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":43,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"e697a34a-8456-4bff-be61-c4e8b0c6fa18","block_type":"box","text":"Hedging.","page_number":43,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"906db620-ef18-45e7-a931-cabe78ca738e","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":43,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"b05151fd-e692-4b64-8ecc-a9cfe3a31500","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":43,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"644ea7e7-563a-440b-afaa-de4a5927dacf","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":43,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"f7e37ddb-ba61-4a84-81cc-caa233aa0bb2","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":43,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"f48862aa-77f7-43df-98fe-5a86a064eb71","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":43,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"56dbd17c-c31f-48ce-af28-e9d679fa1a49","block_type":"box","text":"correlation risk,","page_number":43,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"2c3ddac9-4ad3-46cb-be72-af5a194311a0","block_type":"box","text":"i.e.","page_number":43,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"1aeee14a-9640-410c-ae7e-8d3a9ae1c548","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":43,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"bab65eaa-a991-4ad0-8fb7-bddf22056177","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":43,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"a5729a83-5533-4c72-a3fa-de6b06f2a1e9","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":43,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"e7acad71-7911-4283-a990-698a55e987bd","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":43,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"f1519cf0-a436-4dbb-8fcd-ade9a94fa7d6","block_type":"box","text":"Speculation.","page_number":43,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"ed85e4aa-08dd-4f6e-9e25-212131027649","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":43,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"1cf5b744-5299-4f72-9d87-88c574e2e183","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":43,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"7c0e5ef6-ecac-47db-a769-d58069bb4738","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":43,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"878beeeb-4b6b-496a-b62d-1e16808c1b76","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":43,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"97c36c94-4dcf-4a88-b27d-54c16f6ea36f","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":43,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"da226733-4c0e-4b29-98db-f59d7e0b5011","block_type":"box","text":"Regulation of Derivatives.","page_number":43,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"d7849e26-17c7-48c4-b0df-c4aa5d7362e8","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":43,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"a8ddcbe1-df25-42fe-9c34-a107e10340cc","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":43,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"2622ee60-5dd2-4d17-8360-712fef945c85","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":43,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"eb5c284d-820b-46e3-a407-9b49008f1189","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":43,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"f8e46409-e46e-444e-bbd8-15ce11ccf30d","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":43,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"e950c917-9fc8-4652-b568-7275c8d1a0ab","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":43,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"c0bd3108-943a-44ad-81cd-a7d613a562a4","block_type":"box","text":"coverage”).","page_number":43,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"d4114def-c002-4be3-8e5b-c2469533800c","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":43,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"ca43fb74-4d8e-4bf8-a71e-b53c7b1b687b","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":43,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"242251af-e43f-42b9-a62c-c86abd33509f","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":43,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"aa109a34-c0d5-452b-a799-1459b6814666","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":43,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"f73af619-8810-427a-a1c5-fe0637be0cfb","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":43,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"e403e4bf-07e5-42a5-a59c-6502cef50a62","block_type":"box","text":"financing transactions (","page_number":43,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"f07c6226-4273-438e-8be2-12620834f91c","block_type":"box","text":"e.g.","page_number":43,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"1b64ae4c-c9fb-436c-90bf-807c5c7450a3","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":43,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"0c0bcade-91a4-4268-a134-f0e9635aff33","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":43,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"6d7eddae-86b1-4b62-a7ec-8e6b9660632e","block_type":"box","text":"securities (","page_number":43,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"3cb21360-1d2f-41cd-b3b6-7ebf0a6f10c5","block_type":"box","text":"e.g.","page_number":43,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"8c6f1173-d460-458d-ab15-1e77d32dc0d0","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":43,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"a397b68d-f60e-419d-a823-ef8c9bc6d86d","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":43,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"35aada4d-8fbe-434e-af27-2b484c843844","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":43,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"6cb0d8a0-5b37-4a88-b062-423fc263fcc0","block_type":"box","text":"Commitments”).","page_number":43,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"e31f1e47-934e-45a1-b69e-6bbdcfbe2dd5","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":43,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"a47898b6-04b0-4cc6-894e-dc60803a2c8b","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":43,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"e67e1fa4-7b83-4400-a9e3-b3a921921f1f","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":43,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"6a6dd18b-db56-4896-aced-2592079bf7d9","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":43,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"892bc727-5ca6-4f73-894a-4972b707f761","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":43,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"3a49eda9-c8a5-4a61-b859-a9d54260f566","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":43,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"8a5d6c71-2047-48d6-888e-adfcd9f96c70","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":43,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"9c3e392d-b009-4a35-9370-b4a5e0cc53b6","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":43,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"38dc6148-bd88-4ed9-a7e2-4100cf0091ff","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":43,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"f840321c-db2c-4d20-9a46-a88c4fdb9b99","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":43,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"d095fcc1-81f8-4c11-b421-17374bc9f9c2","block_type":"box","text":"II-13","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5132d24d-f598-451a-ae0e-ea87fa2e4704","block_type":"box","text":"NM1026U-5978647-43/232","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fba023dd-cc41-4bb5-a1e4-8637d6e5de9b","block_type":"box","text":"Dodd-Frank Regulations.","page_number":44,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"26da7407-7880-48d0-ba15-ae2717b6e677","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":44,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"f06fc5b6-dadd-426b-ba3c-5b2a8eda727c","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":44,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"6295b4de-b565-4c51-a0c3-7011dee10e05","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":44,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"62107746-38d8-4385-b0f9-86adc09c7674","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":44,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"1065aa93-a403-45f6-9bce-f9f3acbf3326","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":44,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"22403742-87e6-4e2c-ba0e-d1adc2ef99f9","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":44,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"ab44910b-c5c7-482f-8eb6-bc10edaf735a","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":44,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"e533b215-0ba9-43f5-8d07-a6ca5aa17caa","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":44,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"fc26ec26-7c8e-4d2a-9f57-fd7772e79b07","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":44,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"1140a43c-24cb-46f8-913c-ead5bdb8d7fe","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":44,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"7d50a3c0-ca26-4ddb-b2ce-5f5ef2b42773","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":44,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"6cecbf6e-b67a-42db-8f25-09be005abb92","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":44,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"54e9aa33-3c20-4d60-a022-535383dd2a48","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":44,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"fb931078-a4e3-499d-8341-695e27a9647b","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":44,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"11cb98c5-1fcf-40a7-9df3-30c89336d450","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":44,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"fe9a03d8-c5cf-42ca-b1f3-6b16ec0f5cc5","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":44,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"bafc81d1-ff37-4bab-ae78-480d47f4ba1a","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":44,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"ef2b9dfc-1325-4a17-a981-769e42a77e4a","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":44,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"c0e3d3e2-6f5e-491d-beff-b71b9775a5cb","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":44,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"4531916e-26d8-48cc-bd0e-2d5a5bc32fb5","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":44,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"309e5487-d948-42a4-b921-afa0b2b23b44","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":44,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"694247a0-5115-4351-9154-bdb074380926","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":44,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"cacf3dad-a203-477b-86fa-325acf8f4125","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":44,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"c9c5bea6-347b-4b4c-860c-dde88ea503fb","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":44,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"14069124-2142-418a-8c92-c3cd89127ed5","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":44,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"d8264e03-716d-4775-b11e-aef0ea1a1753","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":44,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"c75dc4d8-2944-4517-a67d-5d080130a827","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":44,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"53df730f-7490-4202-85a1-ef3ded64c118","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":44,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"77babc92-7e9f-4ed1-84b1-13cefa25d69f","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":44,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"4ff05f1a-7f87-4e23-bc04-819193b056a5","block_type":"box","text":"member.","page_number":44,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"71e8bf94-6b07-4a85-b8d4-b13ed2bc934e","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":44,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"8c82ebb6-5936-42d1-bbbb-7fdb8655134a","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":44,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"826b9881-1559-4683-985e-15334494db93","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":44,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"bc334420-c396-425f-a363-cc27a7278541","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":44,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"65105341-711b-43d3-b6ad-ed6a96571310","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":44,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"8a18fe49-184a-43de-bc59-21f3a6ac6f70","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":44,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"10b300aa-90f5-4516-bbe9-d048f2e685f5","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":44,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"af85a1c0-f1ed-4b1b-a310-d7c1bfa62f55","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":44,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"bb074ff1-f809-477f-937a-21534347b696","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":44,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"b0cba851-d66b-47de-b67c-7658bcefc695","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":44,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"58d4c396-fcc5-4909-804a-2a917e84d405","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":44,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"b320b819-0fa4-497f-8ce9-d3315555c8d9","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":44,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"e8660647-acff-41de-b77e-dff1b31611b0","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":44,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"ca6abea8-e18f-4538-a4db-4143ef619901","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":44,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"c52333e5-42a1-4af6-96f6-ba918367e309","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":44,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"1dfef50c-3f8c-480d-b8c1-c34c6304af38","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":44,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"535036c1-9cbb-4c99-b423-2059f06bc54c","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":44,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"8be02d7d-f63e-4bb9-9a93-9a4f45dbd587","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":44,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"10e2ae02-be0a-4c9c-82c7-7341bd402286","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":44,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"6fdac01e-7b35-4697-b056-1c117e12121d","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":44,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"4c6ab05e-4fd4-4375-bc8c-b97b8ed49c4c","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":44,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"6c5a7419-fb4f-48bd-81c0-fab260d5b86e","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":44,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"f4b5cae9-bac9-47c9-8f77-ab1a9ed14f7b","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":44,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"708d529f-c8cf-4cac-a924-e1182ca3835a","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":44,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"cdc7b9aa-1fd3-42c5-808a-72392eebabfe","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":44,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"057a5772-721e-45b7-9a05-372a2af143ce","block_type":"box","text":"II-14","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"72e071dd-79f1-4965-b755-c89d88a9ac7a","block_type":"box","text":"NM1026U-5978647-44/232","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e41942ee-3294-4937-a24c-d85ad0c8488e","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":45,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"86ee89d0-5a5a-47e4-9655-d63953b66e83","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":45,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"5be464c7-2178-4642-9d3e-d508d1706a86","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":45,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"4bb35555-0876-4662-bce6-b3547ae18358","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":45,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"3dd6272c-27e1-4beb-8762-48e59a2b935f","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":45,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"07204fd2-c380-4abe-b8a9-c81fb687cc8b","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":45,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"f496233b-c4d5-42b0-b5eb-7cce5340d45d","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":45,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"ec8f40c3-05f5-4bc5-bc90-aca183673d85","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":45,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"74903e99-01c7-4ae8-8c8c-977ad161c99e","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":45,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"90a8a07b-2aa1-46be-bf95-eb5813f8864d","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":45,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"f5c123fd-d462-4dbb-bc62-500cdb05c0b8","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":45,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"e4d6c7aa-9645-4f6e-b0f4-2fe50030cff3","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":45,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"10148ae3-9950-42f6-9ae7-a8ef5f1c1f40","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":45,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"666c0f36-6242-470c-b3c9-415c3a47c848","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":45,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"416c4f65-2ad7-4bc8-9b84-d95ba4f2b2b8","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":45,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"a56f771e-42a5-419f-8a2b-2b1f266b5625","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":45,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"85fd93ab-e0a3-4b7a-b1a2-d2a7b9bf7b01","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":45,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"ac611f11-cf68-41e0-bfa8-931fc0692f1d","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":45,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"cf9e7c3b-1a86-4353-baa7-bf4fe8a83986","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":45,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"20a194e4-5138-49bb-afed-bd7459c496e1","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":45,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"6fe51cb8-74c5-4780-a1cd-4975db3df87a","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":45,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"a1dc5a48-7fe8-4fe6-ac06-0b54efec89cb","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":45,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"9ab7d626-c1f6-4524-8a88-6344b260e488","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":45,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"dff8c5e9-a276-4de9-b98e-4a4bded66fea","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":45,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"1ed88276-873d-4470-b159-2dfbd84519f7","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":45,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"07a34930-c614-4e2e-8b3d-f131f58b3711","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":45,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"ddf1e54a-c5af-458f-99db-8a80b4ca54f8","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":45,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"e4686fa5-28de-4895-9912-a5088aaf1acd","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":45,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"8ce60b77-ff6b-4756-b6a5-06e2d69a450e","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":45,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"71451984-66e5-413f-a358-6684381887e3","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":45,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"74021cfa-99fd-405f-912c-5175ddacd87d","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":45,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"eae0bb88-18c3-4e23-bfc7-3b88de14bfbd","block_type":"box","text":"collateral received under such contracts.","page_number":45,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"10c48100-bc52-44fe-bc27-78ce66bd372d","block_type":"box","text":"Risk Factors in Derivatives.","page_number":45,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"03f494e5-c2fc-4e17-b882-d56011a40ded","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":45,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"a4759435-5a2e-4dd2-a36a-d8863dd75aeb","block_type":"box","text":"Correlation Risk","page_number":45,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"08f0488c-1c61-4927-839a-77104cb69e40","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":45,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"e03b9a34-3a34-491f-a82e-7c090413432d","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":45,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"333e3a4b-8a72-4500-9a11-8bf3cef4cbe4","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":45,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"589acc42-a568-4e47-ac64-fe3f66c12be2","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":45,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"8dd3a523-b4da-4d41-948b-fa8bcc2a0f03","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":45,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"422b6803-0f3f-4f8c-b896-2ebf3bb06744","block_type":"box","text":"Counterpar ty Risk","page_number":45,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"95d804b3-ed45-4b9d-a4da-e7f2f4720a4b","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":45,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"fa57dda2-aa04-4cff-ba73-021c60632d9c","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":45,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"146b0b4a-bdfb-4d73-bd8d-5fdc22b4b2bb","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":45,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"fc47ec07-599d-421e-a965-f80544990a16","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":45,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"4aa5f0c7-daa8-42f9-a321-11855c1a5216","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":45,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"0b07914c-e240-43da-9c7f-c2b3a2aa90a4","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":45,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"f790c04b-fe08-46c2-accc-8842fc409533","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":45,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"6b5f5966-4ba8-442c-a002-3a9998c5fea5","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":45,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"57e0a159-9283-456d-b4ef-cf807368ab53","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":45,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"d81b0f73-d53d-4264-b2b8-9a493f9f808b","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":45,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"974a53f9-8f7e-42ee-bd96-0234c953bde2","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":45,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"3bcb752e-8a59-4d58-9e3d-ced61513d061","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":45,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"a5b32ac8-fe21-424a-a7c9-2f979b7e0c9e","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":45,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"9caa7a3f-282f-44ea-9579-071651939907","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":45,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"414c7775-4d15-41e9-b9d3-a3da09166271","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":45,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"6f93a0a6-5ae7-45cc-80eb-e616865c888c","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":45,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"65d2d5ac-f171-4139-9d96-098a19c409b5","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":45,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"3843960e-4883-41b1-b076-63d09927647f","block_type":"box","text":"II-15","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ed18370f-f54d-42d5-93c2-2b03fa2e423d","block_type":"box","text":"NM1026U-5978647-45/232","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"44b64ca8-9cb9-4a0c-932a-b22ffae741e6","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":46,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"b5cee611-9421-4d69-b755-ebc2260af3fd","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":46,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"ea232d1d-8c8b-49a2-b4ae-1664ca2fc81b","block_type":"box","text":"by the clearing member.","page_number":46,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"01971515-820f-497e-b70b-d661571c6dd8","block_type":"box","text":"Credit Risk","page_number":46,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"0ac25ef8-f68d-4a5a-8ad3-958f6d0bb655","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":46,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"29dd5608-e17f-44db-a1a0-4ba11f51e872","block_type":"box","text":"honor its financial obligations.","page_number":46,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"241a8a1c-065b-41a9-a6ff-ac5d85d46c48","block_type":"box","text":"Currency Risk","page_number":46,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"c9d26729-6fd0-45f0-a284-228a017059e5","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":46,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"899b45b1-51c1-442b-9026-5434861ae51b","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":46,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"e11bf13e-f401-41ad-9ab5-5a544082cce7","block_type":"box","text":"Illiquidity Risk","page_number":46,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"6efe6cc8-1d68-4281-ad15-f483ebfce19b","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":46,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"5019b58d-13af-4736-8777-b7f60717e254","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":46,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"9888ba9d-ae08-4419-84ca-0a85778e11bd","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":46,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"e5c946d9-6e74-446d-9d01-fa645f6be745","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":46,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"c3438fff-0802-4d6a-b7fc-d3e436aba7bd","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":46,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"9dbd1e19-9d58-4fe3-9b2e-e2b4d2b695d8","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":46,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"d49d5b2d-9206-4be1-9914-d9e7d98c3c4a","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":46,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"62cd4bd7-fb3b-4278-96a9-fcc5149771bc","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":46,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"8ff92981-3cdd-4106-911f-0b92c2421048","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":46,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"a1cfbda5-728f-45a3-984a-769502ea4dea","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":46,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"c1652085-d29d-46b0-bf79-303839015aee","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":46,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"9478aa6f-6c70-4133-a778-da0cef2c936c","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":46,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"8203a70c-2679-46d2-9cf4-a080f986ebd4","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":46,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"72bb26a4-6802-4b9c-83f2-1056fe204cde","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":46,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"5aeb2004-78d9-4500-bc56-55d8d08ca800","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":46,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"1795359e-47f1-4138-94c5-2c5ef795e4f1","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":46,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"c8dba352-6ba1-43bc-af38-611de15270f4","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":46,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"9fbdb732-cec1-46be-9018-9cd6b8a45297","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":46,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"e57e8d72-c928-4913-8ee3-66e89cb5cadd","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":46,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"37950e44-bdfc-4070-ae24-b5dca15d0196","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":46,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"03d05ac5-9c60-4037-9ed5-aa3f9a56354e","block_type":"box","text":"may be disadvantageous to do so.","page_number":46,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"91b7f280-faae-4b15-9d5b-4d4513d9cd69","block_type":"box","text":"Index Risk","page_number":46,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"3a000fd6-ff8f-4b53-8c9d-a34352a5821b","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":46,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"beebb370-2726-41f7-800a-fa589b2f082f","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":46,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"116ff3e3-fb0c-464c-9f91-bb100080e52a","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":46,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"6e59cf2e-d19c-4946-b563-e45f48903aa3","block_type":"box","text":"Legal Risk","page_number":46,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"81ea6240-aafe-49f5-852d-4fdea748b6c1","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":46,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"ffdbe2c0-de96-47e1-84cc-05588a65c05f","block_type":"box","text":"or enforceability of a contract.","page_number":46,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"fd0f970a-1dc4-4a08-9f87-91ddfb7cf280","block_type":"box","text":"Leverage Risk","page_number":46,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"2c148315-8a00-4b76-894c-54f0bf66b5fa","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":46,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"83b579e8-4293-4687-a1e6-92e7b50635a4","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":46,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"2ba192e3-5d12-4f32-be0a-339679f5fdec","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":46,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"43fe9cf5-a03e-4a14-915f-a30e75426119","block_type":"box","text":"Market Risk","page_number":46,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"e6414ee6-dce5-42b9-8cb7-64371ebfa89a","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":46,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"9c2e146f-a46f-4971-80f3-bad8663c478e","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":46,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"194761f6-d6fb-47ad-b698-a5b7e93787bd","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":46,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"21cc1bac-2048-42ed-8db0-409d61acd58d","block_type":"box","text":"affected.","page_number":46,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"fe86293d-80fd-4bf8-859a-65310b7db1b0","block_type":"box","text":"Operational Risk","page_number":46,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"e7438765-3d40-41d8-a8d8-a39d15a83cbf","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":46,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"ecd84a0c-a69b-4efd-b838-8119167975ec","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":46,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"940c620e-968a-4a7f-b17c-64812683b344","block_type":"box","text":"Valuation Risk","page_number":46,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"aa0ffeba-6806-4451-bf82-72cecf7080ff","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":46,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"7c350247-c50e-4319-afa8-491e1d6e8b75","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":46,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"ead7d18b-59c0-4dc0-9dba-b8eaeef5d993","block_type":"box","text":"complex instruments or quote prices for them.","page_number":46,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"efb05daf-0e59-460f-bc9a-413db90f9f83","block_type":"box","text":"Volatility Risk","page_number":46,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"9f400d31-7131-4683-bd9e-97a6eba859ac","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":46,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"2c7622d9-dbe2-4bc6-88c1-cdaf62ff8a85","block_type":"box","text":"Types of Derivatives Transactions.","page_number":46,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"24326a50-62b8-484e-b0fd-d4223aaa9285","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":46,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"6acac774-5312-4b8c-aea8-a19dab817170","block_type":"box","text":"including the following:","page_number":46,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"c86857d8-ecb7-4f60-868b-1472448cd823","block_type":"box","text":"Futures.","page_number":46,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"30258628-6aa5-4293-8ee6-1307da34bea8","block_type":"box","text":"II-16","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c02cc5db-3b13-4c7f-b707-d42cc8b8a1de","block_type":"box","text":"NM1026U-5978647-46/232","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"17c4d390-1d14-4321-9543-242354f776b7","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":47,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"dc573f42-7699-4db0-bd4f-e4d3adb33657","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":47,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"397d4e1d-77b9-4323-a480-d7431398bd5c","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":47,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"9f4a56b4-b99d-4034-adc6-fdfce38eb9c4","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":47,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"4bd1cf23-135f-42ab-963e-f17441399dd6","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":47,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"51ba02b8-02cf-4307-9ae4-44b41f5989aa","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":47,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"5fbf8b5d-8f56-4467-9747-dea87131caa6","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":47,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"c7f3c045-380f-4dcb-a292-bceff4dfd286","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":47,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"69f922f9-8748-45c8-a0e8-422f936e0e82","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":47,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"e52f3660-494a-4f57-90c5-fe1a09191a0c","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":47,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"0dbe2197-7aa8-428c-a949-5d219d66572f","block_type":"box","text":"of the futures contract.","page_number":47,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"54ab856a-1004-46b8-addb-7198eaabf129","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":47,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"b6d6ae56-b197-4b59-982b-1bfb7996ad66","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":47,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"f6eb1586-3c10-4556-a4f3-efabe17b16a0","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":47,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"75986a36-14b3-45ed-999c-b20c4a970f9b","block_type":"box","text":"relating to the futures position.","page_number":47,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"57268c97-1aa4-4f6d-b6d9-42f339ae7905","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":47,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"73479676-6892-48bf-a326-1c77264462ac","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":47,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"4d5745af-5c6f-49ce-86a8-639d714c9ca0","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":47,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"9135c5e0-7cee-446f-8a7e-1a3d07b1fcdf","block_type":"box","text":"Regulations” above.","page_number":47,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"e36f752c-fd8b-49de-9002-b36547c6a535","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":47,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"d0e3105c-7f31-4cb8-b303-d84e89b6fa64","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":47,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"4222d9c8-f8d5-43f1-b57a-5825c9a5744c","block_type":"box","text":"(","page_number":47,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"8b2685aa-56e1-49e6-b230-b46001675594","block_type":"box","text":"i.e.","page_number":47,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"af5f568a-d3b3-48dd-8928-0e7dc9deac91","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":47,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"d04ec64a-ac0d-4a1e-b973-2f46344dc446","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":47,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"c0a22bff-4286-4f2d-aaec-1ed7ba31e9ad","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":47,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"abb7b561-b798-4b76-b9b8-b8838b4ba7a1","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":47,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"5673d4a5-d0c6-4e2b-bd4b-575280cd0e4a","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":47,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"64240904-2c32-4b3e-b48d-b66e777730a8","block_type":"box","text":"Fund intends to purchase.","page_number":47,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"cd4818d6-5117-4d35-9774-d93d6e43d30b","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":47,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"6b826d78-daab-4374-b4a2-0caac3291eda","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":47,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"1f0e79fb-d8b0-43ab-8c00-96ce7b4c32de","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":47,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"d300c7d1-9566-4ed7-9ac3-e8ba4939219b","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":47,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"2073bb0c-e7c4-4e33-a431-35154dd5f5b6","block_type":"box","text":"illiquidity.","page_number":47,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"b6186478-4b23-4cb0-8e22-300e95f20c19","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":47,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"d7e5624e-ca67-4dc2-9954-05ac14a8014d","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":47,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"c26c3f7b-162d-416a-b9af-7219dc498677","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":47,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"d0ad8e0b-64d4-496e-8943-9bdd26bbf3c2","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":47,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"a5639ff3-61a4-4d62-ad0d-96626adf3aa8","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":47,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"77313f66-913c-4deb-bce0-f36efde5fb0f","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":47,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"310ae161-a23e-4062-a141-4cc5bd79866c","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":47,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"e2ec633c-117c-493d-8184-e1721fd706ee","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":47,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"df1cf4d8-4ab0-415a-8f99-46aa55a51c03","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":47,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"f5aae13d-7f7b-4a09-96a2-99bd832ac021","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":47,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"6264b965-dff0-47ae-afe7-d51ba35be0a9","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":47,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"f5a5b4a0-10d8-4e2f-af21-75c67b632ab2","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":47,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"66996e38-f946-4d24-8739-9149f3bd5cf8","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":47,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"2fc12f24-01d5-4043-ae01-f65ebf796d65","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":47,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"9d9bd32e-a328-4de1-b21f-b07acf9a9966","block_type":"box","text":"Swap Agreements.","page_number":47,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"33da5d94-98be-4a13-b3f4-d537ac297ae8","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":47,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"06b5a914-0627-4745-89b1-9c16875d068e","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":47,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"483abf8a-1201-457c-857e-631f97399afa","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":47,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"96ffdea9-149c-4463-acc7-772803dcbf33","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":47,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"6c5f4925-9c2a-4fb6-a431-b3691e036fc9","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":47,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"c7a9d661-f177-4eff-b4b4-ac1fe818678a","block_type":"box","text":"a “notional amount,”","page_number":47,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"465ab0be-8420-4532-b69d-0f3af733f2e7","block_type":"box","text":"e.g.","page_number":47,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"fb0a8257-6e17-4a0a-8ac3-ea08d8c2259d","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":47,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"765fd9c5-fe26-49fe-9804-1ea18ac0c1b8","block_type":"box","text":"II-17","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e255218-e6f7-4eab-9b28-35344948970a","block_type":"box","text":"NM1026U-5978647-47/232","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a20a11a9-6166-4c42-9dda-e3293010d80e","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":48,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"48eb92e5-7d93-41da-a506-2e319b15fdd4","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":48,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"1b227903-5d75-4d4b-ae8c-3eee63839839","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":48,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"4d196636-e0c1-4c3a-a304-e15b25a90c36","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":48,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b3fcb59b-4be4-4af9-abd2-a470865f8224","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":48,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"366a2a32-dce4-4de3-b8da-babc04297cb0","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":48,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"0802940b-5007-45c4-882c-84ab6785139e","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":48,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"f082d2fd-6f91-4d81-8a5b-ee3ad87ddaff","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":48,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"ceb30621-d8cf-4e06-9e05-3ea0d97ff11a","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":48,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"ca1e9f4e-c67c-4703-b4c6-155476ec2dd8","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":48,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"cd2fdb77-c214-4d1e-93d0-60ed651778a1","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":48,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"9d3c96aa-4f89-4201-b677-bcb10ab181df","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":48,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"a3429e40-43f9-4d59-9785-8c118bd73bb5","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":48,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"6e050d7c-889c-4553-9331-8aba28e47a39","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":48,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"62a0ba01-977b-4abe-9311-c66bc6f03fec","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":48,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"9db95a61-67e9-452c-8b84-8d9d939c764c","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":48,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"c4f71325-6411-44d5-8672-bc7ad188835e","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":48,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"36635f00-12dd-4c4a-9cb4-04a463bb2b88","block_type":"box","text":"index CDS.","page_number":48,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"ab93b992-8af7-4588-8c91-223e70cdbd3e","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":48,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"411ab61e-bb36-40d0-a1e7-f248dabe1cc0","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":48,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"35639ef3-5175-48e4-bb36-71bb2889f89d","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":48,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"7768debb-1fe9-44bf-be06-cf86e2bd29a0","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":48,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"44e2b662-d5c1-48be-acf1-1df3f6ad5267","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":48,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"5d6bdaaf-7629-4d3f-a55e-abf5f21f3b59","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":48,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"8fe86ad0-8704-4b8e-9a2d-af1f2b6de3f5","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":48,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"67a631fb-a430-4556-8d18-d155bf2e1cf5","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":48,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"2d2cdd7a-383d-40ca-aaee-7bc220f7dc4d","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":48,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"fe81a6bb-02ad-4951-9b5a-f2afc96bc898","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":48,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"29fa62f6-860f-4c75-a6be-239646aef144","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":48,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"b5963657-ba09-4573-98cd-896f6425c989","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":48,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"287f4f15-926d-4699-a1f9-c12e6eda090a","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":48,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"2882cae6-a5df-4b44-87b1-acd80bf74ff2","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":48,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"c593503e-e065-4162-8791-13d2473dcea6","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":48,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"1700a847-ec0b-4364-8884-5d41296dd833","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":48,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"3e929ae4-8e23-4fc6-a2c1-158bd7eb4fbb","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":48,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"e74652b7-833c-4f8e-b3f2-82adfa54edf2","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":48,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"e0b70fce-fbfe-4b35-a50c-a2d094dce230","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":48,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"a1b5a984-e98c-49ae-b8c3-d2f005184301","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":48,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"aa088b54-b3fe-4940-9b5e-820e7f797ca9","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":48,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"2826c759-2d29-4fbd-8879-d3e514136db6","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":48,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"0fb19364-81d2-4f37-a0c2-22a7965e687e","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":48,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"88b063c7-0174-4fb7-881d-d8251662717d","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":48,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"372b57a5-0f4b-4698-93e3-7dbb19af1eb3","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":48,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"60b8b2c1-df18-44f4-a9c9-59c1c5fc9dad","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":48,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"da4fb64d-1c77-401b-996a-2910412858b9","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":48,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"687bc0cf-f83c-480c-ae64-96d23dde6e6c","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":48,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"a9c163a0-60cf-4651-9dfc-4175fa26944c","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":48,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"2bf2ee56-58ab-46ed-a458-9557a6d86118","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":48,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"6784de4f-6ee8-4bee-8b98-edad0656ff67","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":48,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"b0c2190b-a6c8-4360-8f99-b953f287ae9d","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":48,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"1144008c-0781-4059-a887-10f0bdca0624","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":48,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"159c0612-da79-41bc-9452-decd1aec046f","block_type":"box","text":"conditions.","page_number":48,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"24f4c10b-feac-4922-92c9-74e6a401ea4b","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":48,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"37285abd-28a6-4973-b5ea-45f64ab42db5","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":48,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"42e16a10-e887-43a2-9f79-3e275d9b7d99","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":48,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"4c1e599f-14a6-4aea-adf7-cf86eb276923","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":48,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"01cfbd21-65cb-4a54-8fd9-c63d4a385179","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":48,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"7f65aa41-23cc-4c03-a362-45800572f4fc","block_type":"box","text":"II-18","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62af0cee-4871-4a79-8c6d-5c1cef6cfff7","block_type":"box","text":"NM1026U-5978647-48/232","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c2be6449-94c4-4c34-82b3-80adb92ed4ef","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":49,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"8eb9b7f7-b54b-4958-9d4f-4cb607c6206e","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":49,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"9f6df830-8063-440a-825e-f385f6a5162d","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":49,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"ab2230cf-c098-4f30-a957-7f254d25921f","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":49,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"407a0659-2132-4227-930f-3da693fbe2cb","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":49,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"dd13bb3a-28d3-49a4-b7f3-ea4e547eec91","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":49,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"1d429a87-d491-44f2-848f-eb06cc7b822d","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":49,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"09c268e3-f016-448f-8179-1502b99a1e15","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":49,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"514d34c8-77dc-4e62-8219-c3a243b52ddc","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":49,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"a2296ab2-3e96-4456-9c69-b17a6101870d","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":49,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"91e0b83c-e559-4777-86a2-67e7d05313c3","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":49,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"dab23560-3927-40f1-8e21-ce95b30239b6","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":49,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"00a3c6b3-14b8-4831-9737-a39cd458b41e","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":49,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"cdc541c1-05af-4715-bfbe-ed3f4a611217","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":49,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"78b597d9-ac6f-4a22-915f-c349b47f9045","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":49,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"152a4e3d-2433-4a73-9fbf-9919a031d3de","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":49,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"3b484667-7ddc-4388-bd56-28d79a3e0996","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":49,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"3c1db15c-429b-48f6-bb35-84559ea02e55","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":49,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"dc5abb5d-7db0-4218-9831-4dec9d795812","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":49,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"d779f2a9-b129-4910-b9cc-b0a599eb089e","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":49,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"7975ffb9-c223-4e5b-8ea2-b46aca9a42a4","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":49,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"818d7a52-9b8f-4610-b1ba-54df22683458","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":49,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"97ef80a9-ad02-4521-8bd3-89a1f7a3ef34","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":49,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"b369e1ed-e9d2-49a2-baa7-7a1ac6f06887","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":49,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"77a3d69a-c345-48bd-b19b-b690c43cfd5f","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":49,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"286008ff-9e21-41c6-ab18-2da57638c52c","block_type":"box","text":"cleared interest rate swaps.","page_number":49,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"840c3122-3405-4af4-b329-d4fd63ca8d0b","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":49,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"b8c7a43c-7e80-4596-9dd0-60bc3029abb5","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":49,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"adea2ae6-b93f-4058-91c6-a2ca5b44b671","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":49,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"ddd9a3c2-7428-443c-a541-b565cc30c4d1","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":49,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"72051f5d-5377-4147-b054-e8b12a8f4c28","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":49,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"4ff950a9-cd03-4c80-bd4c-f191cd0d1c2f","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":49,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"a11ccad6-0719-41ba-93b0-76625f2b5bf0","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":49,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"90be53ff-ce44-4ad8-a1a3-a2828acf943c","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":49,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"86983d52-d8c5-4883-b4d2-f124a364a483","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":49,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"5d21790c-99ef-499c-82ad-70aad66483d7","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":49,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"1e57c3e7-24f8-4cad-b0db-f63f020c0a81","block_type":"box","text":"or variable interest rate, index or asset.","page_number":49,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"ee9529e6-9841-441c-ae75-19b532440a01","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":49,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"b82f6f09-7322-4519-b19f-bbd25ed7f433","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":49,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"f9fdee8a-7d77-44ad-ad45-e86b5875e0b8","block_type":"box","text":"such interest rate floor.","page_number":49,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"3cf5d122-2516-49e0-a617-45fedaa4c887","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":49,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"e0c6619f-c4db-48e3-aa64-1a3e1d2ec90b","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":49,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"adb590a5-9003-47fa-ba1d-767b131b254b","block_type":"box","text":"such interest rate cap.","page_number":49,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"2ca198e9-e856-417a-ae2b-35165ce9ccdc","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":49,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"19c5fc34-ee1f-4e70-a502-3444c29b37ee","block_type":"box","text":"commitments to pay or receive interest,","page_number":49,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"91375526-2ca9-4d43-946d-e10645e924d7","block_type":"box","text":"e.g.","page_number":49,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"a6007809-da2e-458d-ab4b-6585072d1f64","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":49,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"ed91aa3c-fa74-4517-ab36-0814cc7d7326","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":49,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e38a9186-a3f9-4798-b8f7-370ca85219b4","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":49,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"d87d112d-ac68-472e-ad14-4df99607b542","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":49,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"d027570e-b066-4ccd-aee8-842c9c123630","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":49,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"d82e4799-8a39-4826-a0ba-8124cfa822ef","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":49,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"cd30d52d-caa4-4894-920e-8e93abc421c8","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":49,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"1393f63c-eb76-408a-a8bc-ec46c1504a89","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":49,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"f6272006-f36f-40bb-9ac6-6c572bfc59d4","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":49,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"fae77a57-07b4-499b-911f-e521bc818c07","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":49,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"e272f72b-90ba-4b3e-9cfe-5850c1241d37","block_type":"box","text":"II-19","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bd7bd45-8f79-49e3-b513-d3556b4a07d7","block_type":"box","text":"NM1026U-5978647-49/232","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8dd287f8-4105-4bdc-89a6-a19d7cb74504","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":50,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"9c4d305f-8068-4989-87c1-2080b8157a88","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":50,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"b19dfd63-4d05-4128-a0ce-d942851eb086","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":50,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"27012c2e-c413-4a20-8e84-5081cca2d092","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"72ce8d56-6339-4862-ad6d-c5c8b870c33f","block_type":"box","text":"Total Return Swaps.","page_number":50,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"6baa9f81-e95d-4e95-b674-9b717c37de11","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":50,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"6c49b24d-f1a0-475f-8a37-cfd95f363f66","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":50,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"e3624e1c-be5d-471a-9c96-309bb04417dd","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":50,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"f74e5295-0e01-438b-b748-926946a32966","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":50,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"948b0e08-cc3d-4bc9-8da7-879ebc985718","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":50,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"87c2bf6f-ebe8-4911-a54e-bf34c98b3fff","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":50,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"39c94716-110d-4f2e-b2b5-296159495990","block_type":"box","text":"“contracts for difference.”","page_number":50,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"56b8997a-f969-4a90-8d20-cd213d9faebe","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":50,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"5ea34f7d-e40b-4e3e-8bd2-a1ad95c05ac4","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":50,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"6fad066a-ca1c-4b2a-a5f6-ccbe6020c832","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":50,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"a74f33e7-27cf-49ce-bf5f-76912f7296ca","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":50,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"8b810c89-6822-4f7b-8c96-9327e86c2183","block_type":"box","text":"the notional amount of the swap.","page_number":50,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"0d45bf90-3c54-4abc-b498-9630eed69f21","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":50,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"38033d32-a2a3-46aa-be47-9cb47cb54ce0","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"31bd9d2c-bf58-4828-9fbf-39f2e0270c77","block_type":"box","text":"Options.","page_number":50,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"a1534841-434d-4f98-970f-0e2eb92499cc","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":50,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"b32341dc-97e1-4819-b2c6-f05212c84154","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":50,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"dc054f66-e0f9-46c0-b21d-36e3a119f9d5","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":50,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"5739728c-9475-4b86-86a6-b91a9f769b3a","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":50,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"32977080-cd69-456c-aa74-8286bcf8e127","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":50,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"717ed11b-ef4b-4f25-824d-0b5093537637","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":50,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"4e82ba88-bcde-4cda-8fa7-a4d4b71765b9","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":50,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"a5ee5c6b-2797-49e3-be64-e9da357aab30","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":50,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"44a34e7e-2875-4877-9bb5-88b74a820faa","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":50,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"c1021cb7-a34e-4269-a4bd-68720f2fb660","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":50,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"ed10fe86-5f56-4bc2-a7f4-89fa6d3e7a05","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":50,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"439eb53c-4e08-4602-abb6-193936c800c1","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":50,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"0774d08d-8dbe-4306-86e7-56fc72663c9b","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":50,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"c2d999e1-9efe-4edd-b3e1-003e9e47a733","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":50,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"ba9b6844-a66a-4f50-aaff-b8a6316517bf","block_type":"box","text":"OTC markets.","page_number":50,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"31e08a93-ded6-4792-82fb-4d04860b0fdb","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":50,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"eb6d47c9-aa46-4758-8a27-4a4e1599804d","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":50,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"30ff1ff9-65b1-4309-9a79-38c64ed5e7c7","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":50,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"8828bd1b-613e-41ab-be78-fb9e5e348750","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":50,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"295bdea1-8880-4ac6-90a0-818e3ef2fcd4","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":50,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"e25801a8-3428-4f7e-a0e8-aeb7089edaee","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":50,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"2529df41-7f46-430d-aa91-ae23c43cf7cd","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":50,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"39f811c9-4617-4fda-88be-0dae3f789e25","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":50,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"c1904a82-1c0b-4fa3-9586-8c290b7d8c40","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":50,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"befe183a-b440-4a14-969c-33ab437b016e","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":50,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"d927f3de-b346-47aa-9d53-e337ece95c27","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":50,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"fadee14a-d0a1-4696-a7fc-f640b3767045","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":50,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"bbb8241f-6b8d-4b9d-959a-7c638fbc7629","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":50,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"d2de549b-f1d7-49dc-8796-8d18d23b70b4","block_type":"box","text":"terms.","page_number":50,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"3b199384-ccb0-4885-b040-b29d0d0cc9ad","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":50,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"cf7b5529-e571-4ca0-8832-c6c95674a9e7","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":50,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"2d35c3fc-daa7-43c4-83ff-92675865a704","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":50,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"dd01fc1c-9bee-489a-b33f-d0064aa61119","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":50,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"41303153-3d6f-4f92-ab7a-c0ba291184cd","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":50,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"92d468a3-74df-46c8-9edf-b3f6cfdfea69","block_type":"box","text":"II-20","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b4634e7a-e484-4029-9872-6835b5b95972","block_type":"box","text":"NM1026U-5978647-50/232","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"65870fa5-c861-44cc-9ec8-8e57a93a8cb8","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":51,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"b62db8ab-15dd-4253-8b2d-7ed7142943f1","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":51,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"c55d23df-e206-4813-81e9-f5ce660dc7c6","block_type":"box","text":"Call Options.","page_number":51,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"07e34cc2-8131-4c91-a1a9-4558c6fa4a8a","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":51,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"39bbc84f-b736-435f-a569-b9392fa0f0c1","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":51,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"18d01615-e214-4bbb-b8c7-52b43a16f5e7","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":51,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"14d4d09d-a66f-47c0-b948-d2d2de93e651","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":51,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"8233e0ca-2800-4177-8029-40f7f81fa6fc","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":51,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"fc5280de-10f0-4535-8b26-4e8bfabccf27","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":51,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"89b7aa15-24da-48ad-a8e8-23aab562906a","block_type":"box","text":"of the option.","page_number":51,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"106330e2-3208-470b-9eb9-cb0b5e541598","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":51,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"be47bdfd-5af9-4ad7-bfc9-62a2b47a8fa2","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":51,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"850257bd-0964-464d-96f5-4c36d84d77b2","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":51,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"750319a5-62d5-43b5-9be9-ce7ef056aca9","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":51,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"4f663bef-616c-4201-bff7-536ef26c0a6a","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":51,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"4c9858f1-6250-4862-8d80-883dd62cbc0e","block_type":"box","text":"A Fund may write (","page_number":51,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"0c6a6980-2442-4290-89a5-93ca00291a2b","block_type":"box","text":"i.e.","page_number":51,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"bb32308f-14c4-400a-a162-892066adc809","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":51,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"a36029be-fe3c-41f2-b27e-e6aaef7848c6","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":51,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"1fdc019d-15a4-40c5-bde3-371e596b3cc0","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":51,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"ba13900d-6da2-417f-9894-dd2b80acf54f","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":51,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"91b04439-1509-4a98-b639-2a3239c68a4f","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":51,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"14896070-36f8-4006-983e-da1429a5e21a","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":51,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"6aaad1d9-730e-42db-8cb8-eaae6b393663","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":51,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"dca5abf9-5513-48e2-9ce7-82a51783cef9","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":51,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"b71ab059-b97f-4b45-bb8d-19781a38334f","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":51,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"58edc57c-c4a4-4917-85ff-d46dd6bfe0f7","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":51,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"b25bbc38-5a0b-4606-9d8c-52a6d98c152d","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":51,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"424d9fd2-7fd2-4b1b-8ad1-81de7e6dd398","block_type":"box","text":"A Fund may write","page_number":51,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"1fe94f35-100f-4219-bf64-d7b3c7021545","block_type":"box","text":"(i.e.","page_number":51,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"cd93e3a5-9e36-4cd2-87d2-aa4cb8025cdd","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":51,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"159a7bbd-34a9-47b7-894d-b9027f913a93","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":51,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"17f11c7f-1597-4cf1-9c87-cab080c9bdf7","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":51,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"d93b3e38-be30-4ebb-9a76-08c3271841fe","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":51,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"8470ce80-65cc-4899-8c59-f1f30f49c413","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":51,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"da93e88d-5a6d-40a1-9563-c6a7e6353f09","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":51,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"f69788e5-8641-4a5b-9159-c549d2692f73","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":51,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"cc05b4a3-1f85-4018-b3ae-0411669b1682","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":51,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"10aa553e-8b34-4a5e-bb19-277fee0f59e1","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":51,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"d6a4b954-f2e5-417c-9d85-9731a58eb530","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":51,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"88e5e0be-72ef-496a-820f-71c19ed6d150","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":51,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"e8a218af-f44b-45f3-bc64-80ee1e92f6ac","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":51,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"7e87afce-0a13-4a1b-8572-5244f28015b6","block_type":"box","text":"Put Options.","page_number":51,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"838ff9c9-d941-40f4-8fb1-b71d147b4223","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":51,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"076e7d2d-6b08-483f-9a21-7829837d79f3","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":51,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"e8535f9b-5526-4c14-afee-32be3fa5608f","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":51,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"3bdbd34e-c2d1-46ac-8ddd-51990dda2d4a","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":51,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"fc780832-25f2-4bbf-bac6-3ebc07f1f006","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":51,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"2cdeab2d-712c-4df0-a9e8-7ef06b27a538","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":51,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"7016e214-656e-41ba-a1df-ab0f150bb02d","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":51,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"f80f8073-2b85-44f2-9ecb-c7fcb0e78162","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":51,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"08592f51-f430-4334-8597-bff34b8209db","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":51,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"a687ce5b-38e4-4ed2-affc-2ad92c7f2cc5","block_type":"box","text":"purchase uncovered put options.","page_number":51,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"d34de5c0-8516-4614-abe8-1f1548f73112","block_type":"box","text":"A Fund also may write (","page_number":51,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"70560db4-7103-4a96-af09-c5bed8f5189d","block_type":"box","text":"i.e.","page_number":51,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"7c9e4787-b4b8-4cd2-928b-187c6ee32e14","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":51,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"41f40484-7054-4683-8b24-feb5a6da41e7","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":51,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"4dfcda56-0a4b-4876-b01a-04c85c94f1ff","block_type":"box","text":"A Fund also may write (","page_number":51,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"e24a653d-c2dd-4808-b573-b6bd2a67c871","block_type":"box","text":"i.e.","page_number":51,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"b365fc81-9e7f-4a2a-b1f9-e78eb778c231","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":51,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"a28dbda2-78d0-4942-b89e-dcbf3a61aab2","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":51,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"7ac323bc-b414-4447-841a-08c35717da4f","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":51,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"cd6a7f14-93af-4335-899a-816919147c54","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":51,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"87289d2b-6f6c-43a4-9983-72d4354e4837","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":51,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"28e3eb54-ece3-447f-a776-ec582328d855","block_type":"box","text":"II-21","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6c000f8-39eb-4c42-acde-8721808b2881","block_type":"box","text":"NM1026U-5978647-51/232","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bcc0f75e-ce98-4297-a4ec-984789331d8f","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":52,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"7be37159-44a0-44fb-98de-3de109825fe2","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":52,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"477f9448-7ae2-4d24-8a67-c6fb1bcc6990","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":52,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"58863599-b64c-4ca3-b508-c9928a7ff31a","block_type":"box","text":"the exercise price.","page_number":52,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"39d85e49-9621-4861-a163-76afdba5848a","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":52,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"2e73b545-9798-48ac-9383-1e4a1a0cfa6d","block_type":"box","text":"The following information relates","page_number":52,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"0dc540d3-3166-4455-b34a-0424cc3ff1d7","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":52,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"21daefcb-27b9-4342-ad4d-b45fc9c67f1c","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":52,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"16c927c9-4f6a-447b-a0c7-6eaefb330bfb","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":52,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"a8d5a395-93ed-41be-8890-20cc6268d2b8","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":52,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"0aefc5f0-60ad-4f22-b5e3-3463b2e4d2e6","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":52,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"1c07f6a5-2c1b-4fa1-abf3-e16d9851ef7c","block_type":"box","text":"market in order to maintain its “cover.”","page_number":52,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"c4092e3e-e6a9-4f3f-a007-34a810911cc7","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":52,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"be86692b-ab1b-4383-a0e7-5558d864da70","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":52,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"bbf32152-88b7-47a4-958d-0a1115549bd5","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":52,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"0d1e4df6-12cb-4455-b54f-e97e09165637","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":52,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"ad45965d-69fc-487a-9aaa-f69f9926150f","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":52,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"8ffeef10-8959-4cf4-bc3e-e5ce4d801c66","block_type":"box","text":"and incur transaction costs.","page_number":52,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"93d271a4-8439-4a61-bb17-f1bd526d6cdc","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":52,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"f182fda8-93d4-4b8d-a6c0-efcad273ef6b","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":52,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"26ac4cbb-2685-4bca-99e3-314cec06195a","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":52,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"b1079e2f-4dcf-4a02-91b6-452292d4a6a1","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":52,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"fce14149-aa91-47cb-a2f9-f87e37b2a713","block_type":"box","text":"i.e.","page_number":52,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"727bd23a-9ec1-425c-9452-18ceee32dcf4","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":52,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"e5a99431-d9a6-4ad0-9a59-91083096e19d","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":52,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"8f8c2781-2ad5-4e26-96f5-d537f96c152e","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":52,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"8e186a84-9815-4ebd-8200-e7e2773c0f9d","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":52,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"15267620-f7d5-437d-bec4-1ae2d596fd1e","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":52,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"18ea9fed-2dad-48c0-9c2c-3f04bd4d9104","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":52,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"b53acbca-70f7-47a3-9db2-79ac97c21fd4","block_type":"box","text":"required, to be cleared.","page_number":52,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"88047cdc-9493-47e5-93b7-5c2791dc3e14","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":52,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"fa7350af-5477-4f17-a1c2-6517e79c2a7d","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":52,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"9d99d5a0-1216-4907-b9ae-64f6b149cfff","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":52,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"48b8d19a-5c72-4231-b23c-9a140556d04f","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":52,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"c35be41e-dc73-4008-be1d-f5460fceceae","block_type":"box","text":"Derivatives” above.","page_number":52,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"121fe242-89e4-41f6-a6d9-354fe35bc158","block_type":"box","text":"FLEX Options.","page_number":52,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"44e6ea32-08fa-43cd-a591-b40bca667848","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":52,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"d195b22e-bf21-4f6a-b45d-846bd36b83d7","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":52,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"2848d0e2-5db7-423e-b07d-acf29735c83f","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":52,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"843963a9-6dc9-425d-811b-7b98a967ebdb","block_type":"box","text":"exercise prices, exercise styles (","page_number":52,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"6052319a-6d13-4fe2-8d7e-7476c4395837","block_type":"box","text":"i.e.","page_number":52,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"c97a5447-8454-47ea-8bbd-1884e616f196","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":52,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"0928c97f-aa6d-49e2-b4b5-8c033f772c5f","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":52,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"f5405441-9237-40c4-a5ad-f8a16b827b55","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":52,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"a34b6bb3-ddb8-4e68-adcd-c890cad3142e","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":52,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"9224057f-1f8e-434c-833d-90edc1d251ef","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":52,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"bf106ed6-dc10-42a2-bfe1-4bf8713470e3","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":52,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"3029b1ee-5765-4e40-a281-52eefb05473b","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":52,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"238cf079-b41a-41e2-8cab-170158636d4e","block_type":"box","text":"FLEX Option’s expiration date.","page_number":52,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"5b1224a8-31e2-4d0b-b03e-2ef75b53e78b","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":52,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"2e5bee86-15eb-490d-8696-9ff204fb0db6","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":52,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"2abd527e-b296-49cd-a6ff-3ddd4bf4e271","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":52,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"819e7917-2362-4a6d-bb96-d6e77792f53b","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":52,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"4bb3444c-4238-47f8-9b59-5d9182e14073","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":52,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"6f531d1a-9d73-436a-ae9c-236c5ddd008b","block_type":"box","text":"FLEX Options contracts.","page_number":52,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"cf73e121-4192-4073-98c1-949798eaa198","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":52,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"400e7337-09c2-46b8-9d4a-68165ee5d182","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":52,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"a62781ae-311d-4215-8fcc-171c7fcd88f2","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":52,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"7985d51a-3d9a-4a48-a5ab-e4604a388c2b","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":52,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"57a8c388-8902-4271-a274-b721110d918f","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":52,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"4bba0cf6-adf0-4748-9e0b-c8695ac9b341","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":52,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"b2638036-c3e6-4bc5-8c11-7cb1413eeeca","block_type":"box","text":"II-22","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"24ad458e-5a03-4acd-8322-e6ef99023e74","block_type":"box","text":"NM1026U-5978647-52/232","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6f3c9df0-4677-4f6e-ac08-0108333de3e5","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":53,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"fc6b1634-1f4c-42f9-b439-bb5019f683b4","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":53,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"bf92bf71-718b-44e9-b60e-a935a77e8787","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":53,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"85269ecc-5a7a-46f5-a265-8be61b9755b4","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":53,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"419644f2-5a6f-4608-b04c-66b7f77973a8","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":53,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"bf1f9433-a162-4c10-8257-6ea0a7f79da9","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":53,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"6716ee97-05b5-4037-a659-67dc363187e7","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":53,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"a0bb49c9-ee4b-43b6-a23d-f1e1abf648d5","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":53,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"c6033a5d-049c-4e68-9984-0c4af7786ccb","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":53,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"ea641dab-fee9-49df-a335-b2b7d710810b","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":53,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"55dec388-7bd8-4b8d-a64f-7194143b25c9","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":53,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"a9172ea3-48b1-44c2-8cab-611c46d9b17c","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":53,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"35701ccd-36c3-488f-8574-6c298d97e8d0","block_type":"box","text":"expire unexercised have no value.","page_number":53,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"8ca9a39f-8d58-46ca-8846-c281048b02eb","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":53,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"b87b0c91-e121-4c00-b56a-b98f9c9c5400","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":53,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"b0398718-175c-49b9-aafc-3537c297f397","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":53,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"3a52b842-dd7b-43e8-8928-199b1e7e6b08","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":53,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"d0a2c2d3-0ff0-4b88-83bc-a6392874908f","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":53,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"ac033626-7072-4acf-948f-9d29a3f669ae","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":53,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"1dcc3092-3188-4086-9b1b-de6dd7905968","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":53,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"615ff348-c745-436c-ba01-e6b90ac6194f","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":53,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"63401242-9426-4863-ad9b-7cf00cc23a4c","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":53,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"5001aa4c-741f-4560-a47a-d1879aff099e","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":53,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"f2ce2a06-d41a-4876-8900-f425174b45f8","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":53,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"4027d39a-ce22-440f-868e-3887d744e3c5","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":53,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"cfb2ea98-df4b-444d-8b75-262251bca92e","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":53,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"51bbcfd0-c22b-41ad-9f3f-ccc0630c06aa","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":53,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"38f21471-fa3c-4e6d-8fa3-b6e113ba895b","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":53,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"ed3d9bd7-ef13-49ec-9db5-1e870bc481a7","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":53,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"ee9a4184-f4a5-4085-a8fa-ec134fad9f61","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":53,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"89a670cc-dc18-4bd3-8f50-9836dff3c39d","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":53,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"ec0dad8e-5b8c-4ddf-a706-805f5e0b1bfc","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":53,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"15c09933-a20b-470c-9d75-4e564138bc7a","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":53,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"6a8b4a97-ec27-4652-9075-1f07944e4ede","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":53,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"b11892fd-68f7-4954-a894-6cc54a0ce76b","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":53,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"4aa2cdc5-f67d-4d5b-aeb8-3f0e1a7cdb99","block_type":"box","text":"Foreign Exchange Transactions.","page_number":53,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"a87e120e-9760-433a-9f75-b140d37932d5","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":53,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"d4cfbfd4-856f-443e-85ed-671781593975","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":53,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"441c3f89-c6cf-4def-89c6-170b790f283b","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":53,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"93ed3e45-95c4-4b26-a9a2-46c36ff32c0d","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":53,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"6c6ef9ec-ea72-43f8-9538-40ad66c6aca8","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":53,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"8ba95dfc-bcc4-4389-b321-a7f5f6a9d960","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":53,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"c91d0509-4122-42eb-ae3e-628d7e6c1cc5","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":53,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"70fc04de-f566-45fd-9838-48c48fac888c","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":53,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"3e343ce8-aff4-4319-a49a-5c9f351137f0","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":53,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"3b59d5b2-5d9a-4637-9d1b-f6e963c71d87","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":53,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"4cc49348-57a7-4237-9eb4-c296547fda38","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":53,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"d014c066-75d4-4542-abb7-4390930f8326","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":53,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"6b7f5521-655e-45d7-ae91-15c3e7ed8f4b","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":53,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"607bef75-5315-4fa8-a44b-45266279a6fb","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":53,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"431e2e95-3813-45a2-b903-f812d29930e6","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":53,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"75df1749-095f-44d2-bd69-bd0745715539","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":53,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"b1b4cb0b-1667-4773-93e1-c854c83c401a","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":53,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"97f43c9d-2bef-4a46-8c78-1a81aeb7b792","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":53,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"bc265c82-4f6b-49a6-8d57-f7ec8ab2d061","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":53,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"acde4989-4a64-44a6-8aca-b4755dc2d3c0","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":53,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"88691af7-12c2-402c-8df8-e3b93fc06011","block_type":"box","text":"II-23","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"da9753da-fc3d-4e49-a973-5e2e039f28a7","block_type":"box","text":"NM1026U-5978647-53/232","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"220c8192-91cc-4ac6-bdb7-beacbeb98bd9","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":54,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"c5efa572-5ced-4fb2-a9d5-2267651d13ca","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":54,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"7b0dce88-059b-4c53-a17b-25fde15c0d22","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":54,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"bdc0a511-f9b3-4a76-b589-884de583633e","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":54,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"259c5af2-19a1-4420-a48a-fbdba6486ed4","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":54,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"30356088-6214-4d4b-96e4-747648bdef02","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":54,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"7bff5806-2934-4c80-a286-ae1b7d60d3c7","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":54,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"04ded71c-fcd9-4bdb-adfa-3d6dad6830a1","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":54,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"8452af03-c9aa-43d4-833f-4eef8a27a24f","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":54,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"94204be5-c477-4694-a281-b3c26f8ebf2c","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":54,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"c433f53e-dc7d-40a0-9881-7181edcb86be","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":54,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"7ac9ea98-7e74-49fe-9f4b-0fa324e8fec6","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":54,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"75b1c20c-f5c1-4076-a14c-5e389e67f4b7","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":54,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"eab01e36-6a2d-43bf-b3a8-32e918ce557a","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":54,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"0bdbf8d5-4283-4a59-a738-53c3d343cf6d","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":54,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"547aa750-eee9-4602-b790-f71a07fd0633","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":54,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"9df51fd3-3423-4362-8309-b636cede3be5","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":54,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"e0e63327-73e6-4805-9b75-823304f39528","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":54,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"50202e06-e243-4dce-b4a5-a64ecf30dcd5","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":54,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"640a9273-9a2b-4731-bf10-7cfcb733f6f3","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":54,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"5faec2b1-d775-4137-a0e8-bd9ff275b54f","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":54,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"be6eb56b-0946-4be1-8e25-bf6355ffadcb","block_type":"box","text":"involved.","page_number":54,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"05ad3534-e6f5-4bb4-a471-bb68a37861a0","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":54,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"8354fc5c-a622-401a-baa7-42f4925642fe","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":54,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"48b7f6e8-9cdb-40a4-9867-9b00f17f4794","block_type":"box","text":"denominated in such currency.","page_number":54,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"12fbcc26-3e1a-4b6c-a0ec-bf7f3b74cdcd","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":54,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"c6ca8086-017c-49f3-8325-c044bf5bd633","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":54,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"635c0334-7a03-4c0c-863f-bac0b6ea59d3","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":54,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"988c8600-ff2d-4128-aba6-3aad4ce377f2","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":54,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"62301440-9d01-4c3a-a910-e0030166db2a","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":54,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"838dfd17-0791-4453-980a-8fe1df3beb12","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":54,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"bd521f97-3a6f-40f3-a414-7654128bb782","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":54,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"22602cb3-a22f-4c92-95ee-c0e297943714","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":54,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"65b44b87-639b-4c41-8b5d-b675ddf7d5ed","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":54,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"07144a27-a205-4336-8a8c-b4c96bc70c16","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":54,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"4cdb07ba-7d69-46bc-814f-81cc50dbae2e","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":54,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"703df3a2-fba1-4c78-844d-c7807217c964","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":54,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"3619faff-d167-4c70-bb98-e7758c8f1533","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":54,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"6e974040-6c53-46eb-86d8-60ecb6e3bb73","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":54,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"961fddb6-1468-49b4-96c8-9d8cf8cf0f0f","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":54,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"eeb76b34-0919-45b3-86af-57df4a561967","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":54,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"82d76335-7d27-4316-8c63-c4499cccfb2a","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":54,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"0f174ec2-f2d7-4c2c-9bdf-37a1fa413c71","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":54,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"c5d43a28-eee7-4c41-bdc3-3f776cd6067a","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":54,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"a64c6425-c2ea-4f01-928a-68f6de40ff50","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":54,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"c34b8aac-338d-4301-aacc-8dd6e19ecf1f","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":54,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"2d5998db-7654-4564-b72e-569ac08c8552","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":54,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"d4b347e0-ec2d-4277-85d3-f1ad71a5bda2","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":54,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"c6178261-030b-473e-b807-03acc4ddfe23","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":54,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"3bdfe4e5-9a5e-451b-8524-a6a302e48dde","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":54,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"1e0385b7-a64f-4aa7-bbf0-35ade30096ac","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":54,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"e87c2762-4daf-4002-9fa5-cde7995c7bd0","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":54,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"00575b68-879a-46cd-a6ec-8ca2882c8c43","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":54,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"0851a054-be93-48df-b607-c910c35db337","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":54,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"c2f74b0f-ea23-445d-b9da-16e51ba4b8cf","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":54,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"b7ebc162-b31f-42bd-92be-f06c2e76cccc","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":54,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"d52d5f6c-da34-4cf4-8c19-dae5ce9a5765","block_type":"box","text":"II-24","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c9007879-aa62-4bca-9a04-3defe55e35e7","block_type":"box","text":"NM1026U-5978647-54/232","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f573a0a6-ded8-4d0d-b6ee-3b330cf28195","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":55,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"0bdfb654-f769-4ef1-a3f6-db69f0d67432","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":55,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"b8661eac-35cf-44c5-b244-9ce69c112432","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":55,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"465943c2-ab00-4027-8909-9e11bc382fb3","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":55,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"75d9826d-7459-42e5-8104-5c979e1786d6","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":55,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"57d99286-fc6a-4dba-9fea-c5c7f2775e12","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":55,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"afcf8f70-824c-4a48-af96-7c79dc526a51","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":55,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"29694f4d-b675-4a1a-ae15-578eed5f268e","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":55,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"643ee7e4-abda-493f-b2c7-4d3240317d19","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":55,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"4b66dc00-e7c0-4bdb-9a27-db8104f560e3","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":55,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"13d4d512-5007-4d15-b46b-b601169ce700","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":55,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"432d0771-3960-40c6-a922-0cd5c4c75dc0","block_type":"box","text":"traded.","page_number":55,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"901ae048-8c70-4c7c-99c5-d5575ddff346","block_type":"box","text":"Currency Futures.","page_number":55,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"42a0bc57-1d58-4ecf-aaaf-d43d27f6b5eb","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":55,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"c3e49756-ea14-4f84-874c-eba0defd5b5b","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":55,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"a7c5bbb3-ec26-4ce6-b963-bbe5997fb140","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":55,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"933dd0ee-1abd-4d75-aa2a-cf343243fe48","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":55,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"c5133a0e-6efc-4a85-b94d-785787661593","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":55,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"ab6f2982-db0c-413d-9411-d37c1e94b5a1","block_type":"box","text":"Currency Options.","page_number":55,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"d421209e-659d-4bfd-a11e-352d5c02cd49","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":55,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"0d235c3d-6fec-4ab9-811b-3e3185886baf","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":55,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"d8deeaa4-88b3-4cfe-b36d-b60868dbba0c","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":55,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"73c5b45e-643b-4275-8711-46deac0c4aa9","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":55,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"56740e9a-27e5-43f8-89ae-abeace757f32","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":55,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"e2878140-817e-48dc-b23b-3d9dc9ac013b","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":55,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"9a01efac-efe9-4f18-954e-3aaa998098de","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":55,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"9f156fe2-a50b-49b6-945d-5dd44d5133c0","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":55,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"c83d989a-b91b-486c-b895-9ebcb90bd87f","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":55,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"97a84bb2-4e35-4e57-9a94-6d1c46dc15bd","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":55,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"efda06c1-2453-4fa0-a74d-08302c95e3d2","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":55,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"e4a3ec1e-c3be-40a2-a526-bc1c5e084ce0","block_type":"box","text":"Currency Swaps.","page_number":55,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"557f1842-772b-4ee7-96c5-f01dc22ee3a7","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":55,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"8ba0bbbd-ceb0-4b1b-9c30-23786d4d3b52","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":55,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"b675526f-8c96-4652-9b50-467df0a77551","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":55,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"d20db9dd-efbb-43ae-aaa6-39d6eb04d145","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":55,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"609a691f-0535-4b68-b1b4-04084a92e6fb","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":55,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"d5bb98d4-2c25-44b6-873c-d3b09df8aca9","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":55,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"c01561e4-dcb8-408b-9411-5e7491255945","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":55,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"3be2df32-48e9-4a91-98b7-a9c36dfbc509","block_type":"box","text":"Distressed Securities.","page_number":55,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"7c710fca-ed55-4bfc-8bb0-1a74a76e7d9e","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":55,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"50ca7fe9-2604-484f-b654-415349c378be","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":55,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"9af51437-0f94-49bb-83be-7c24cbfaf4e2","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":55,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"2618de50-6369-4ceb-a1ee-bb2d2ec5fbfc","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":55,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"4b319cc1-af93-4ddd-85a8-36c737da1c9b","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":55,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"3c0c823d-c0da-4be7-ace5-d54143327448","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":55,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"4f97ccb0-f328-4b16-bb95-8055d00b1283","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":55,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"63d43338-c49a-4e31-ab6a-328ae1da9517","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":55,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"0398a85b-45a0-4d21-a878-fac3e04f731f","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":55,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"a98394f0-a30a-4813-9c4e-18e2095abea2","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":55,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"8b645781-d078-4afb-b376-025b4ecc2509","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":55,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"ed6b0897-4c23-4551-8d57-b8a230c16577","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":55,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"a773da62-067d-41f3-b9ee-1fef6eda24f7","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":55,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"3cc51d35-73ec-4e91-b450-02286690ed43","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":55,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"3896661f-cb13-47b6-875d-d833d2c40284","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":55,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"77d2c515-7df0-48a3-85b5-4d71f2730c48","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":55,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"9df692fd-d308-4418-8d20-66ca30ab01a8","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":55,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"2442143c-3277-431e-bf8f-f68ae6d5803a","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":55,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"62fdc3ad-8aab-4fde-98ba-dab50c1592cc","block_type":"box","text":"satisfied (","page_number":55,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"75be67d5-4769-41a5-8cf4-930a74da0df9","block_type":"box","text":"e.g.","page_number":55,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"24326b2c-4775-4420-88d3-6b7005016ccf","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":55,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"0042d407-bbd0-47d1-a7ee-db2a1a2595c4","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":55,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"38d0e319-c4bd-4dda-abb1-3f617809a88a","block_type":"box","text":"II-25","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bd4821d-0ede-4824-8ba4-f19fc2570e8c","block_type":"box","text":"NM1026U-5978647-55/232","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"936908d7-fd85-4723-874f-1402b09ebbce","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":56,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"f14dd83c-02ab-45a5-bc1f-5c5a1dcb5519","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":56,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"5e318853-d877-482b-b245-6ab1a84cab51","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":56,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"32d5097b-fb8f-4e82-abd0-b1ac4489dd04","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":56,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"06c3ec9c-98a6-467a-b60a-c5385d5ca52f","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":56,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"a35eba81-27c9-474a-a28d-aa13532ba180","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":56,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"87aa7198-e3ec-4eac-85e6-068f3fc5a167","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":56,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"5e874fd7-4858-48e1-91c4-40a4cf1e21bc","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":56,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"b4090eec-1b2f-4c1f-8b1e-faae971df2dd","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":56,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"a3777948-2c50-437e-bf69-a54ce42b1c6d","block_type":"box","text":"affairs.","page_number":56,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"1d0e43e6-4e1d-45e4-84bf-8dc651abde2c","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":56,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"20f19464-071b-4381-95a6-ce6b1833f29c","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":56,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"fa20bd4f-bc64-47dc-aedd-8ff4ab54827f","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":56,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"ed5f0238-ec53-4037-82ed-4db4c25e4593","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":56,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"a642677d-2194-4c97-a56c-ab9bb4feb02b","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":56,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"b9f59c26-3c6a-4c42-a9c8-203ccc460ac0","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":56,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"04b048ef-f71c-4682-8832-9a47bde77f85","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":56,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"9efdf130-829c-4f67-afa7-e7a900fdf8d8","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":56,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"67c7f7d1-e0fe-43cd-b5ec-7c3ff992b488","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":56,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"981990db-b324-44d9-b7d2-e8d04cb8fa01","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":56,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"4b248a06-c213-44d4-997d-2e0cddcfe016","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":56,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"4b9a8e69-39ff-48be-9cab-b74d55146f79","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":56,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"c94aa082-42cc-4381-bf99-041fb4426e0f","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":56,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"7282e363-ddc6-4277-8118-121bc40a34f1","block_type":"box","text":"Equity Securities.","page_number":56,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"817240b1-9657-48d4-b913-56baca9b6d10","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":56,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"cb86fa4d-bc79-467a-9cd0-bbb3aa812fc7","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":56,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"1f1e5aa9-8bfa-40bd-8cab-a8fa1dec06a1","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":56,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"6252c68d-86bf-445e-9421-052a64c79aca","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":56,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"d193c4aa-2a53-48d9-993f-dfef26515052","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":56,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"11182af4-6176-4dca-a754-162a6998fdde","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":56,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"cec8e81b-ccdd-4a83-9103-8d360f9bc56c","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":56,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"7f4eb9c3-b23b-48d8-9b87-3843b0a05e7a","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":56,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"0aa0ca29-78f1-4e2e-b8e1-23e66dbcdf58","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":56,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"8c744066-29db-4cf8-9aac-db0894f3469c","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":56,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"4c51299c-139a-46f9-8dac-a595c089606b","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":56,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"412a3b91-8e09-41d7-93ab-70d492867092","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":56,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"7b309f69-aae5-4d81-906d-03297551ab22","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":56,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"0fdfb31b-4921-461f-8e57-a678add27339","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":56,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"6e432426-e3a4-4b30-b515-7b73c0368179","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":56,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"019de5db-cc79-4bb5-8130-a0815c51fb41","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":56,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"7e2c1102-587b-404c-9f87-dc6f2749cdc8","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":56,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"6e4e88da-b75b-43f4-9a80-9aafe9b5d7f7","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":56,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"4aa9ef88-2650-4ef5-b6fe-c807de4fcb6e","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":56,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"78e7ef89-6157-42e2-b98f-e8257fc41284","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":56,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"1dc06e6a-a1c9-42dd-934a-4800ac7316c9","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":56,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"296fe590-6ee6-4a5a-af4e-f6c85c1b785c","block_type":"box","text":"initial public offering.","page_number":56,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"120367dd-e97f-4313-ba2b-5247d337a82b","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":56,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"230aadb0-a0be-4fa0-94ba-f5efbdb8175b","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":56,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"d569a605-f788-40ff-8de2-f709a1549221","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":56,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"3c32482c-0119-4564-8cd4-1c808da7ba06","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":56,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"ae7705ac-0aaa-4c9a-9a3a-294e6dfef832","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":56,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"b8ce3fb8-b0f8-4516-804e-aa6a18967459","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":56,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"315f62d6-f075-4ff9-9f6a-3e38bde7d795","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":56,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"ca19ecb7-04fe-459e-b798-f44734a94b8e","block_type":"box","text":"more established companies.","page_number":56,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"d5ad1d3c-2a2e-41d8-ab3d-6cf69f657f09","block_type":"box","text":"II-26","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9097e45f-85e5-43a0-b13d-4486558ef7a4","block_type":"box","text":"NM1026U-5978647-56/232","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e204ce54-4ed0-428e-8a09-095ade568c1b","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":57,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"5419d290-1bc7-4452-99af-d2e27359978a","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":57,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"d09d49f7-535d-4a94-b7de-163ac51461b0","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":57,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"ce4f683e-7de5-4f67-a683-e71be802db5d","block_type":"box","text":"below.","page_number":57,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"b6d6f74d-982e-4e21-a7b3-a4cd19ac6f5e","block_type":"box","text":"Real Estate-Related Securities.","page_number":57,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"af65fc31-e5e4-40b6-b670-dccb08616299","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":57,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"a9390636-d783-4eac-8d74-0e7fb9f2ccd3","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":57,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"23a29216-7a75-4f8b-98c9-2f6fa1e400ba","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":57,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"172ce61a-0471-4291-ad08-75268a01fd58","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":57,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"4c26214d-aa87-4a6a-acb6-c6a908ebdd6b","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":57,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"382d7a1d-e92f-4166-bcdc-ff1d2ced734d","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":57,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"e4d8df22-327c-4f34-bbb9-de8034b74d3a","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":57,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"96ef5490-41ec-496d-b49a-c41162f0d655","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":57,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"63cbc0b1-d56b-4e01-9fad-2dd3c1082001","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":57,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"8bd4d623-b36c-45cf-b8bd-5f5e574a443f","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":57,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"39282498-189c-4660-a9ee-0034ae8dfcba","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":57,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"ad0eaa64-086d-4ecf-8e02-4ded6bdcc3aa","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":57,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"6f12a45d-1cee-415d-b365-c498b70a07fc","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":57,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"da388cd7-cb6e-419a-b284-49d7c40fee03","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":57,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"ca0d23d3-a538-4a3d-aef1-a1ce83ecde35","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":57,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"d93e832d-9a35-4289-bf6f-24e6c1a33d9b","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":57,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"b1171464-69d8-460e-b0d2-5c4ca5cc720b","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":57,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"17f2fd08-78f3-4e60-b03b-0e40fccc6e13","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":57,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"47932768-bf0f-484d-8ccd-0442823c0ce3","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":57,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"c953e94c-8461-4f1f-9a6a-217945b50ef9","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":57,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"7827c542-a893-4e96-9625-9092f10f295a","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":57,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"f0064497-51a6-4968-bf5f-dbde2feb8b21","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":57,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"b6ed09c2-989f-4ce0-a040-49dbf391c1d9","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":57,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"c2a67592-65eb-4d11-bb91-98943232d9e8","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":57,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"955593b3-f8bc-4be6-9d39-74a3bf805e6a","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":57,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"4073a41e-515d-441e-a12e-09daba0f5209","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":57,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"c5df973c-ec78-4831-a2b6-d1caf7080b25","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":57,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"03804389-add7-42a2-afb2-bcb8d1cef3c0","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":57,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"95e03abf-c27f-4da1-b31e-bf09c53dfa59","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":57,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"c463c152-3415-41d3-9d9f-a43e3e20d121","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":57,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"011883ca-07da-48c1-892a-08e07cf677ea","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":57,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"2e6b48cc-9631-4035-99e8-0cae40050655","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":57,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"4f7d3a3f-40e0-4362-84c8-9f9f392323bd","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":57,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"b3aa9e67-a1db-4167-93cd-34046b7fe038","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":57,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"90876279-225f-4d8d-aad9-d7368201cbf8","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":57,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"e0e2d9fc-82d0-4dd4-a7ae-5033a1d077fb","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":57,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"7f982118-e091-4f6d-976c-38cba965f7f9","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":57,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"ade6715b-cef7-4f19-bd01-b9ee980e7a8a","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":57,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"41cb20c7-981d-40ef-8541-812eb5e665d0","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":57,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"008529c0-9c8e-404a-ad39-7bfcbf5c0f8e","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":57,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"7dfcae8b-a26d-4dab-b86d-dc455752e14b","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":57,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"3208cce8-60b4-4b3d-bb60-c2ce71a59a35","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":57,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"73b0dbbd-f7cd-474b-b07e-eac84075efed","block_type":"box","text":"cycles.","page_number":57,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"4b5704f8-7259-46a0-a578-5c9f32fa69da","block_type":"box","text":"Tracking Stocks","page_number":57,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"6092d829-ae26-478d-851d-f5239758561f","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":57,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"9b0cde55-fefd-4f27-a36d-7cbed8a3ec29","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":57,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"3c971a17-da98-43e5-9478-e83f0031f002","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":57,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"df9783c6-909f-4f4e-91a1-52ac7727acb6","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":57,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"bfb662f6-1f8b-4cd7-8a92-16e1093125f5","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":57,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"73bcf4e3-43b0-4afb-b50a-dd66d1e978bb","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":57,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"d86debb6-9347-47f1-881a-6331ff9cb517","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":57,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"d941be86-6fa0-409d-8e01-701e3d2ab95f","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":57,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"82a3cf21-dbbb-4269-9c37-be954bded3db","block_type":"box","text":"II-27","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c3c58c9d-246e-4486-be73-12fb3fd88e61","block_type":"box","text":"NM1026U-5978647-57/232","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"beddbf5f-7fbd-44dd-9087-0524cd00b18f","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":58,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"5a92bbc4-26c2-423b-8f4b-b4d66d8040c1","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":58,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"ae1389fa-5955-4e45-a7dd-22f79556460a","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":58,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"78d53b6e-71a5-4fe6-b2db-06e90dab32ad","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":58,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"bf0305c6-22c3-4e34-bdaf-0ecf966f9465","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":58,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"61b846e2-51e0-4640-9eb0-48858b79b876","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":58,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"1e9683e0-41d7-4717-a294-39f737b95849","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":58,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"5564c0a4-a1b8-4d2a-92f0-eb9c4f61c3ed","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":58,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"fe33a7a8-5efe-4b6f-95a3-c5cf4f283611","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":58,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"e945bb45-a0f8-476e-ad0e-1a1c35091c8e","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":58,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"9676377d-8c28-409a-b13d-43d0e90a419f","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":58,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"cfea82d1-c7ca-4847-bf34-9e6a5077a6cf","block_type":"box","text":"ETN.","page_number":58,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"02600c2e-938e-41d8-b19d-dc9cae504092","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":58,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"1af6545a-cfa6-45b2-8239-7ec6fad0f6cd","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":58,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"f8f7b1c6-e76e-43c3-93b5-f8fa6e7b81e0","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":58,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"9b2ea7b2-7b9f-4291-9618-a7c11ef2cd56","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":58,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"be1e400e-c01e-41b7-85b8-d76eda90bbe1","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":58,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"f3f0f2e3-dff2-4970-bc13-ae52604766c0","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":58,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"7c07f272-c131-4d86-8772-00c84a10574a","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":58,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"776e4abb-8da7-4f86-ad5c-4da1582e3a96","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":58,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"3104a5dc-cf14-47cf-b00e-332f0a0e1fa9","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":58,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"5f3d7de2-7487-4bb3-a2bc-0c21661051a8","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":58,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"93d87c87-fe57-474a-9157-a48ea6a7c721","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":58,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"0612f1d8-f857-493c-aade-3859e85f3836","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":58,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"dc141715-98fa-4a53-82c7-6930849bed14","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":58,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"49963779-2372-4738-9f2d-2b681f90490c","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":58,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"3b87be74-3c7e-4029-8a03-76498052cc63","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":58,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"91ffb026-acb5-4cab-887f-4dcbe748ac61","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":58,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"6cd35fd1-ec1c-416c-8596-070cf5ea2320","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":58,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"95c05b74-68cb-4773-9297-596d9ef16802","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":58,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"37d7415d-415d-4f7e-bc56-84346a3b2710","block_type":"box","text":"Foreign Investments.","page_number":58,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"068140d5-4dd1-438c-b9fc-90252e294adc","block_type":"box","text":"Foreign Investment Risks.","page_number":58,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"4df0f7a9-9d68-4dea-af6b-d1c21e015c32","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":58,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"f0652554-a3de-484c-94a6-4efba49562f9","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":58,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"5bb0becd-af38-46ae-a66a-7a589dd04124","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":58,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"ab43aff7-ce9e-43f3-bdfe-b9e98e21ca04","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":58,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"52f2881c-e4e5-48ca-a276-cac64b5bece8","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":58,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"ee71dd57-f17e-4700-9f28-cf832fe0b02c","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":58,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"507f85fb-5049-4909-953e-06c0f3bf2c2e","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":58,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"65ef4ca8-cd67-46ea-90dc-e4ed9aaeef65","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":58,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"78496d16-d0c5-496b-b51f-7a2fa0036d9c","block_type":"box","text":"benchmark index.","page_number":58,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"75396207-5a1b-4da9-b625-38bc46eb7eef","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":58,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"d7448850-364d-4b6d-b7b6-f399ec80a973","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":58,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"ec44e22d-3fb0-48ab-8146-2bdfef0e0db9","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":58,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"6a7f65f6-d0e6-412c-af38-c40c945e91f0","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":58,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"81aa1934-4859-4577-8735-2b191195fee6","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":58,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"526f231c-dbcd-44fe-8826-49e987b0aa1c","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":58,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"28c5f8f8-b7b5-479c-8a58-3980be687c88","block_type":"box","text":"securities and zero-coupon securities.","page_number":58,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"0f413010-eda0-4adc-ac69-6b7c5c1d876d","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":58,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"41f23fb4-aa11-406d-bbe6-362972723e42","block_type":"box","text":"taxes.","page_number":58,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"4fa1a951-6401-4245-bdde-8661eebee27a","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":58,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"246e321b-09b0-4da1-88e5-e3a912adba88","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":58,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"879d7f3d-5b06-436e-b935-03ef67ca171d","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":58,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"ac4ceb78-b016-4587-b870-85ae965be04a","block_type":"box","text":"II-28","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c571d5ec-27e9-4ea6-84bf-889d8a47c9c0","block_type":"box","text":"NM1026U-5978647-58/232","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"032d2629-f0c3-475a-92f1-0a8431f982d4","block_type":"box","text":"underlying security (","page_number":59,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"baf2753f-0af7-491c-a34b-dcba17c5ff1c","block_type":"box","text":"i.e.","page_number":59,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"b956716a-7e7a-454b-8db4-7c0a4df1e339","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":59,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"45c70ebd-f1ce-4682-9aca-ba8a0a51c92d","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":59,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"f91e0233-7380-47ae-8de1-02709f1f6aa0","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":59,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"5aca33c6-8e1d-49aa-a0af-cb761b4cc5cf","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":59,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"0fdae570-c633-486b-91f0-7346cbe1ccf4","block_type":"box","text":"Foreign Market Risk.","page_number":59,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"3902940a-ec44-459c-b01a-543ea9a514cf","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":59,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"bfc7fdfb-6ae5-4f66-9082-d2a545b8f365","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":59,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"49930146-4c97-484f-a433-c9d92a07a287","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":59,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"3cad0686-356d-4c95-997a-b67c9b2dd8e0","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":59,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"d10e82ad-81bc-4ac5-a485-954b06b891fd","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":59,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"4ea5dfe4-bb17-4763-84cb-aa67dcb4aa4e","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":59,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"7ff6f0fa-ce6c-48dd-a2e6-8886b3a6984b","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":59,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"627ef322-9336-4a1f-a7b3-fa4647a7ba45","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":59,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"275f5275-9dff-4b47-bbae-50ddca437159","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":59,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"5f720027-3e1b-4b05-9e3b-f4c277ae1050","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":59,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"aa938bb6-d9f9-4684-9280-f4ec031965b9","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":59,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"092414ab-dd86-403a-b833-40fde73aafc2","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":59,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"f6e30cf4-97e8-4755-9737-d5114ddb5ea4","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":59,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"262e1f9d-bc37-4385-8a8f-a1b5dd6745e1","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":59,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"5aa716e6-c7b5-4c4f-9b97-ae7ab7c065bd","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":59,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"d8177463-05a7-4508-a34d-c4a3a9b08a2f","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":59,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"8eadf39f-3350-404b-8258-7851a1bff304","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":59,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"b5d9a124-f3df-4323-b2a3-a000f8d3d43b","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":59,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"a496e30b-c268-4380-9846-c418cdcaf729","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":59,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"6fe70fe4-f3ad-457d-93d8-606c09df7fc4","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":59,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"a3e6138a-09d9-4296-a111-52be0f4c3a0e","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":59,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"de9e3bd2-8f99-47ab-881e-6177c5f1187f","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":59,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"ba5866d0-4559-44f1-97b0-3826b5cf941e","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":59,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"a73d9cda-cfa7-4eb3-99a4-9f38fe05f57e","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":59,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"a6b3e2b8-ca23-4ba4-9838-5c9676d816c9","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":59,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"b3dde64b-f321-4e0d-8899-02c931de5534","block_type":"box","text":"Fund’s operations.","page_number":59,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"a4b9b378-ffcc-4c6b-ae35-af5165c47f5e","block_type":"box","text":"Foreign Economy Risk.","page_number":59,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"b70241c0-bd76-49f6-b663-f8c7076fb6c5","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":59,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"79bd9461-7766-4ade-8c17-bc3c8353bea0","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":59,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"87955c1f-ef3d-42a6-86c5-66d17b2f26a1","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":59,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"3b985286-5b9d-4aa1-9032-6ae6a0c785be","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":59,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"a8c682ec-524e-4654-8316-dace29511143","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":59,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"03f5c2ad-9f7e-4e56-a1e3-9094bd533ddf","block_type":"box","text":"measures.","page_number":59,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"b66a0d87-5eed-44a0-9966-36b49d8448e0","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":59,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"d8d88d0a-17e0-481b-b82e-30bfdbfc76b3","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":59,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"61c7dff5-e0d1-416c-9f2d-66f765b706f7","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":59,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"54f3422c-00d6-469b-afca-691c4a357d13","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":59,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"c1477926-2c88-4dfc-ba85-dca242177536","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":59,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"86bca066-7b08-4f07-a18c-7a4b877d625c","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":59,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"5281c182-cfac-48f0-be7e-6c574b4d0d14","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":59,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"59e20fa4-f92d-40e6-9e7c-e32694b5fcfc","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":59,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"d515e321-9f01-45de-8b41-5ba7f66e7ef7","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":59,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"b0ffac09-6e4c-4c51-af7e-87e50d274afb","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":59,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"8298dd15-8491-41ab-bdba-f62357233593","block_type":"box","text":"United States or abroad.","page_number":59,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"206b241e-afe9-4eca-8440-9ca73c9e75dd","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":59,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"0aebdba6-b566-4ad3-8ed6-ed41e0ac852d","block_type":"box","text":"Many foreign governments supervise and","page_number":59,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"9ca8f25c-51be-4f3c-ab26-4b89a97a3ae8","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":59,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"d0f9df8f-d32e-4f0f-ae24-a21d7fae883a","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":59,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"0f55b262-c79d-41ec-8329-baf9b9a86502","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":59,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"dc693cda-d65b-4ab8-8b0f-c9e29fbbc5c9","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":59,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"8bc7bf86-a1a8-42c0-a105-c43cc2e5ba4f","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":59,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"e66e4052-4644-45bc-8193-4fe6b47d3772","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":59,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"96454ae2-2e73-4973-91fb-ab7a3a04e061","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":59,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"d828155b-d237-48eb-a03a-8193827e24fc","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":59,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"2475e033-4f0d-4c19-9fa7-6878c6ddbf17","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":59,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"4026ab3d-f955-48b3-97aa-3c518c3276a7","block_type":"box","text":"II-29","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"88d1929a-07dd-40da-8035-97160b24e218","block_type":"box","text":"NM1026U-5978647-59/232","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fe29b121-c590-4c7b-99b3-fc3c9ab0af38","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":60,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"d9e2de17-923d-42ec-b997-0a2f7d00da6d","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":60,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"311d54c1-05aa-4e27-a267-641ba59ef165","block_type":"box","text":"investments.","page_number":60,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"c4605fc9-21ef-42a9-9a56-baacdc47821c","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":60,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"753c3e4c-3379-452c-87a0-c9d6a687c7e5","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":60,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"667f62d5-5c09-4f13-a2f2-d5d165d6557f","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":60,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"9a821a44-d6d2-4c35-8960-b307cb1b5884","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":60,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"5822e292-45ae-4a86-8dd9-1b9024289072","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":60,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"025703ad-66e3-4cfc-a7c6-89ab9eb616e6","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":60,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"e1b25d12-103d-4748-8e1f-0d289ccedf1c","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":60,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"5b173c36-bc67-4056-a60e-c37f04312e98","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":60,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"13422dce-96ae-48b4-8028-e419c6411c4c","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":60,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"3f9dff6e-474d-4fc5-844c-68602d95a868","block_type":"box","text":"States.","page_number":60,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"2ad0e648-8be7-4676-86bf-b6c936c19804","block_type":"box","text":"Publicly Available Information.","page_number":60,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"073242d2-fd86-4148-af92-f33b62226cda","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":60,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"e5520999-2213-4a6e-9d21-866e1bbaa38f","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":60,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"fc60549e-6c3c-4c0c-b6f8-262a0e9a6d06","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":60,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"65036589-00ce-41a1-8770-23fb5222bfa1","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":60,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"6ac75daa-a32f-45b8-9f39-32ccf19cd556","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":60,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"6e19d7f3-25e9-4582-8ae6-06581e7ea2ee","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":60,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"e68b74a9-67cd-408b-ac81-0320bf9ebfdb","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":60,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"d0ffdd4a-e7ef-4bd0-af94-33db6dbad8f6","block_type":"box","text":"United States.","page_number":60,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"1d106431-bd88-49b9-8eb1-fb3a154e3934","block_type":"box","text":"Settlement Risk.","page_number":60,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"623c6829-c42a-4f39-bbbc-54b4f42abf72","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":60,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"30e16025-e112-4a6c-84fb-4b0d378f6298","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":60,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"0fd7305f-5002-4e9a-81db-85d5d93f8a55","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":60,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"20658a31-db82-413e-8743-c4135b114f97","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":60,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"1a75e64f-d7b0-45f1-a186-a300093f79d0","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":60,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"9a660167-7b4f-45d4-9de8-7446e8428024","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":60,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"2e85b4bf-a614-45f7-ae4e-06595694e5c8","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":60,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"8ef437b7-7e5e-4daf-8aeb-1396c51ae1ed","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":60,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"f7c64431-c816-4a36-99cc-22b2670da7e4","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":60,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"b3498e56-5019-4b6b-a1a7-bfb8c3c54bb0","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":60,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"059b3978-1781-46c6-a202-75a0042d0410","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":60,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"daa6151a-f81a-4eee-a382-51b63014be1a","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":60,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"25498f89-d2fb-4b08-88c0-82936e8a11ff","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":60,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"d5bc5b5a-6b20-4cf9-a165-195f21a2d7de","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":60,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"a841ef03-9fcf-462a-9a92-5118bc4ce934","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":60,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"c1576815-37e5-4658-8896-a0af90b76ae5","block_type":"box","text":"Sovereign Debt.","page_number":60,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"80483044-a3c7-490e-8fe9-608fd9edb83e","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":60,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"6e7d978d-6b50-4215-a78c-6b14d503457a","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":60,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"f00ee8db-3c62-49e9-bf4a-e2f898947d03","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":60,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"df508cd2-f10f-4e38-91e5-a07814f202eb","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":60,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"421f9017-cf35-48cc-b762-85b9310e37f7","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":60,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"ac0d465c-217e-42d0-9aa2-d1bee0ecc3a2","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":60,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"77215c1c-a37e-4ff1-b2f2-89871a0a4bcc","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":60,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"2b3ac7e7-30e8-4e43-abc9-dafdde840456","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":60,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"868e3993-4dea-4fd6-a3a9-bd97ba0091b6","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":60,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"4fd16d14-5092-46d3-8a13-28368b169fca","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":60,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"2bc10eb2-0e5b-4c98-8fc8-ae163760bcb8","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":60,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"a4147bb4-32a6-48c6-94bb-368c4d054a12","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":60,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"6bc03c09-88d1-47f1-9017-1e0ace3b3f4c","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":60,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"3e52364f-cbff-42d2-b4be-8fa9e2546627","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":60,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"d1029ef1-e08f-4967-bfa2-5c58c29abd0f","block_type":"box","text":"debt.","page_number":60,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"f0b64564-b57e-457e-9264-e7ee105c3d89","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":60,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"427d81c9-ea9c-429e-98ca-7b98304efecf","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":60,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"6871592d-28ea-46e3-a523-326354478472","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":60,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"a60e68a1-0952-4761-80bd-e95c36c2f025","block_type":"box","text":"II-30","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9e8762b1-a456-4e43-9fb2-2a81bf680b02","block_type":"box","text":"NM1026U-5978647-60/232","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0b225f61-07f5-49c7-9195-db4a05903414","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":61,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"ccebdf11-ab18-4392-a1ed-db53e707d63e","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":61,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"0656ea6b-856f-4f34-9610-1142e16a685c","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":61,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"dbec091e-ae13-4e9a-a82c-baee884e676d","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":61,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"36778e61-65aa-489b-bd72-603aa37c1294","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":61,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"7c1db81b-32d2-47b3-91a3-06e9ec41670c","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":61,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"60d6e491-39ba-4bdf-9eb5-7ea6c74fd59b","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":61,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"f4ad41c6-92c8-4feb-a433-454550a54f3f","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":61,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"12e2ecf1-1b32-49c4-9a7c-e8084c90e542","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":61,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"624ad8bb-6d2c-45f4-9cfd-067888228418","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":61,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"4495987f-22b7-4cd4-b084-f8a8e5a4c6de","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":61,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"9b7dd9ff-3906-40c4-8ee6-49042cc758ea","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":61,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"d0c42e09-140b-4f15-8f96-ea20407e073d","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":61,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"4e0c33bb-51f4-4e4a-ba6f-f987254ed599","block_type":"box","text":"in the Fund’s net asset value.","page_number":61,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"1d49335d-dda5-487f-b65b-1677b9a474a1","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":61,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"7a172c03-f7d7-4a68-9dfc-836ae985bbfb","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":61,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"770450a7-923f-4c56-983e-816fa23c95e6","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":61,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"a5323c63-6a24-44bc-8b15-0c637574f5d1","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":61,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"48cf435d-c663-4074-b144-f11254450e0a","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":61,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"4c23f8b1-add9-4464-b39e-78d8adf23a4e","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":61,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"46cc745e-2321-4027-96fc-298f77274193","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":61,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"e57923af-91f4-4742-ad25-2c9a790fd74d","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":61,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"fd5b3e9a-ac04-47b7-83e6-68879086e648","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":61,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"12a4a8f9-5c1d-4bdd-8c99-78d35d044171","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":61,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"cab94cb0-7e8f-4fa2-bf61-33be2277988e","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":61,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"b2ed5d86-52a0-47cf-b77a-2e4200c21686","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":61,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"a2e677d9-62e3-4c1f-b57b-5d9853d1c507","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":61,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"2b81aadd-62aa-48e9-9d9c-049172482dc6","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":61,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"ad04acfb-e7e2-4bdc-abf0-ffd28d50c2c3","block_type":"box","text":"Fund may invest.","page_number":61,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"182bb73b-4514-4a76-8bbf-4da06d12002c","block_type":"box","text":"Funding Agreements.","page_number":61,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"2786edf3-553a-4fa7-a13a-7199100492cc","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":61,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"8924457c-07a3-4007-b7d7-7efd86790121","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":61,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"511da29d-8a50-4c3d-b080-d2a2e0a285de","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":61,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"02577871-a48c-410b-b19d-332378aa590f","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":61,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"e86d8ef2-5f3f-4904-a610-03aac223f2c9","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":61,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"fac878f4-6cf2-4822-972f-3efaba4e481e","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":61,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"a3cdac5f-104c-46cf-a256-e9de49af988f","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":61,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"ff36021f-1a1c-4f85-9288-97eeb9ca4381","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":61,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"16d0746d-94c7-45a3-a2b5-b5277a2e6c89","block_type":"box","text":"Guarantees.","page_number":61,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"bca48801-0a4e-4680-ab38-3fac543feb79","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":61,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"dc166c9a-65db-46ed-bd49-21dd196849a0","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":61,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"5236d1c8-1b7d-41c2-9bd5-3e5ba32fd409","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":61,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"8eb37ca7-9c8f-4687-95f3-8af759d93b7f","block_type":"box","text":"Illiquid Investments.","page_number":61,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"b9bb7c72-fa2e-4890-87d8-309e005dcfb8","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":61,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"66e569f3-34af-430f-9056-69393e55326e","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":61,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"cd65ff7d-a915-4011-bdf4-bda5088acd67","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":61,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"67a95c62-e0d1-455a-98aa-d811f31b6a10","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":61,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"dd2d5d81-b43e-4a46-8506-207a42db8307","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":61,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"134d31ca-0087-402a-b78a-fb7d11c33b60","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":61,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"53eda0f0-be4b-4101-8310-6c46aa870965","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":61,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"b1a435a6-a908-472d-a2f7-e20044a4fc19","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":61,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"8b8bc899-1838-430c-96ee-eb097843d5de","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":61,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"28891fad-d30a-4f7f-9dc6-10d3cdada0aa","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":61,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"53c121ff-bf48-4d61-97d8-e997bce94991","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":61,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"3b222985-9fe9-4bc5-8d76-294f3e63772c","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":61,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"3737a29c-f2b9-4d2e-948e-d225125f6c66","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":61,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"97e0fbc8-ade7-4c30-aa1d-ef4dbaacdc3f","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":61,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"61d406ec-d6d8-4281-8c83-707670ada944","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":61,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"4abe3be6-896a-48f8-86a7-d2d8212efe33","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":61,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"dc174126-357b-45f0-938a-00c79a71f0af","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":61,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"e5e95eb5-132f-4aac-8524-f9b8779eccf1","block_type":"box","text":"II-31","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4793817e-4e1c-4f52-bf0d-42c4630cdfa4","block_type":"box","text":"NM1026U-5978647-61/232","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1ae2e81a-a8a9-471a-99ae-2d88156a304e","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":62,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"a9de3624-3e77-48e8-aa64-6ffe3cd335cc","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":62,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"ca6519dc-5d45-42f7-92bf-ff941392f1fd","block_type":"box","text":"Index Funds.","page_number":62,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"7034a3af-0f89-4aa7-8684-4740c9bd5063","block_type":"box","text":"Cash Flows; Expenses.","page_number":62,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"136434a3-6cdb-4bdc-8218-56e3c33817eb","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":62,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"37ca6706-54ad-4d87-994d-8514d6adb177","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":62,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"8d4d70d1-d4bf-42b8-a909-05b0dd4fe162","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":62,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"8d36ed4a-e7b5-4ccb-8f83-2defae7c2bf6","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":62,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"a2ece34e-97b5-45a4-a823-eb9a3a03fef0","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":62,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"7f3468d2-bc7c-4ca2-97bd-5931c77ccbdc","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":62,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"68cdef2f-11fd-4038-82f3-c0b0349fe000","block_type":"box","text":"(","page_number":62,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"e8118db5-0093-4969-b934-44ac234170e7","block_type":"box","text":"e.g.","page_number":62,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"b1ec1b6e-1640-473b-83b2-77bdf90bd920","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":62,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"6f30e103-8ac6-424c-86a1-3b4f0c7e2ca4","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":62,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"3d5bc5ec-66c0-4148-bf11-681695a0981e","block_type":"box","text":"par ticular security as an investment.","page_number":62,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"63d530f8-329b-4ced-8261-7b03278f0961","block_type":"box","text":"Tracking Error Risk","page_number":62,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"90b8553f-4665-46f2-87ee-a252d17fbd47","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":62,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"f9a99cdd-430a-4d16-8c14-51d4bea9b10c","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":62,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"85699eb6-6b07-40ed-ab89-76e95f5a5cb0","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":62,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"ccc3ab6a-6f1c-470b-8625-13710fd84ed6","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":62,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"27fa15b2-f0c7-4eb7-af37-d98000e73765","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":62,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"15bb0f72-37dc-413e-864c-9fb42b78573e","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":62,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"59633843-d663-4f3a-ad7b-20e7ddc4f00d","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":62,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"97759bb0-2b7e-423c-a141-b6fd083be559","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":62,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"f7a6ce9f-0abb-4b6f-b5e9-e0e186a2c1e8","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":62,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"02803ba2-8718-4368-8358-b9da5e04c65e","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":62,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"d9a7c436-a3a9-4961-8814-61bf2f41714c","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":62,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"f7673bb8-1037-4f13-b11d-096df99ab429","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":62,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"bda9d8b7-c9c1-481b-bbb0-fdfd4423bf92","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":62,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"96205504-dfed-41ac-9bf7-45b26fbe6220","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":62,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"c5821480-0f01-4444-8fc2-52d593b82231","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":62,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"66ae84e5-ddfe-4791-9309-b766378035f6","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":62,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"c34cf835-c016-47e2-a653-59b04c6bc80b","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":62,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"811c348b-8ada-432e-b561-642a9d873254","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":62,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"928a6ebf-8886-46cc-a9f6-66dfa565f86b","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":62,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"214d99f2-6404-4447-984e-0fbc4c6d6138","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":62,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"780ce4f3-3a2d-4c48-b417-73ee2a0d6217","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":62,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"2cc63eff-12cc-4c02-9ea8-63fc789cf30d","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":62,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"b499eea3-9184-4e9a-bb6b-3922c7287711","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":62,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"1e7219b8-0813-4064-8e50-86fc251ddb57","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":62,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"2dcff646-273b-4127-bfda-9e7ec1e30ce9","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":62,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"c4a8ad76-36f2-4b41-99ef-8e921cf794a5","block_type":"box","text":"S&P 500®","page_number":62,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"d5e6f7b8-f5c4-47e3-94a9-a16557a3329a","block_type":"box","text":"0®","page_number":62,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"a008963f-dd82-4c2f-ac8b-39b0696f5e8a","block_type":"box","text":"Index (“S&P 500”).","page_number":62,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"c0274a20-71cf-4ccf-b830-b4794bf6385c","block_type":"box","text":"“Standard & Poor’s","page_number":62,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"2307717d-3576-4a71-9b34-e68c5d8a00de","block_type":"box","text":"®","page_number":62,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"328bed52-f819-49f0-9a05-3a6e900beb77","block_type":"box","text":",” “S&P","page_number":62,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"e8a240e9-296f-47b4-968a-5728d20ef9bf","block_type":"box","text":"®","page_number":62,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"2b56f29e-cd74-48bd-a797-a3e031b6af03","block_type":"box","text":",” “S&P 500","page_number":62,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"611ac0fe-fd51-416c-a785-842a90677a06","block_type":"box","text":"®","page_number":62,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"8162b739-9b41-4863-8665-307a28be3b29","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":62,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"c08a1cb0-8d76-41cf-8656-5e1a56a5e250","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":62,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"5e72cf83-4221-4522-802d-184d8c9cab1e","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":62,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"f4c82267-0d99-418f-a696-390e0238ea0b","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":62,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"dcba1dae-c7b7-4638-ba29-7fec34c15092","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":62,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"9802447f-3ca1-4a20-8874-c0e0c1ded86c","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":62,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"75fdcdfd-f3b1-4a95-a24d-ed7601e0f611","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":62,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"d8d94cc4-048b-4598-8d5a-42eefe731ea5","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":62,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"dc5e73a4-9a18-4d39-ad77-ef2925b707d8","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":62,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"d43db249-9ea7-41d4-8277-087a23772735","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":64,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"f02cd72c-4fb3-42f1-b1dd-e9cce5cf5478","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":64,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"527d0409-e2ab-4e6f-bc57-ac8b399a26dd","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":64,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"c332f4d5-e75f-4dc4-8ab7-ad8dd8e4a825","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":64,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"713c5d07-15b7-40fe-b703-6c1c74e12c7f","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":64,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"27b36860-26de-41d1-a797-b4c9321b4be6","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":64,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"35d7a5a3-c14e-4b2b-a80a-d92cab253090","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":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"9228db0b-11fe-47e4-8ce7-d9f9125659c6","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":64,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"ba97afd4-8ef1-4042-9687-44d6694f4097","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":64,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"b998e381-9c77-481a-b8e6-48f86ac425a1","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":64,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"c50224be-2de7-4735-8c24-967a696675e5","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":64,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"d5940ec2-f97b-4528-8d8f-f7c4607e1dfb","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":64,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"2c5c6aec-ccd2-456e-ad6a-48454231850b","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":64,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"99aa8604-fecc-4a27-814d-ec6f18a90afb","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":64,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"ced74d41-4812-417c-9358-f82ad74a95b8","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":64,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"d85ed747-8893-4bc4-9468-e1915303c15c","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":64,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"ff39084f-341d-4c8d-b632-4e489e59eb4d","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":64,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"966c3901-9b5a-4748-971e-6c8b709bbfd4","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":64,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"4bbaea8f-43d1-49c2-a821-77ef1d8f3274","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":64,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"61fe7ed0-5077-49e9-87ee-139fcb867a66","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":64,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"620dc9a1-d467-499e-9861-423e482fffad","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":64,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"165cd399-be00-41a4-bcc1-5d00d40fd8a9","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":64,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"f804343e-9373-4505-8457-13e32856645f","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":64,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"1481782f-3c44-42dd-b983-b5fe98709f7a","block_type":"box","text":"Inflation Risk.","page_number":64,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"14424d7c-9eb9-4b67-844e-8dfdd393cf44","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":64,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"b2749c2b-a53b-45a7-902c-d7382c68b4b8","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":64,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"2d92b896-24d8-4acf-8e93-5d75448b7ee9","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":64,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"ae596f74-40fe-4388-a150-16f73d5cb081","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":64,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"608c5a25-dfc9-4d80-af95-cc1c5787f5e5","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":64,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"9ecb95ec-4a3f-49ac-927f-07f494734005","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":64,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"127497cf-54e5-4289-9a7b-c4e497ac9e4e","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":64,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"fc8dd6fc-fa65-48ab-a5b5-ec7267af43a4","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":64,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"5ff385af-e4e4-4368-8f4f-d1e940b53e54","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":64,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"5e36d294-6010-48b2-b0c2-0e14b54b4dc7","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":64,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"27937b09-9743-43cb-a0f8-c40c45623735","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":64,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"0fd7c33a-db9d-462d-bd68-f5c9f3b53696","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":64,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"0ce4a6a5-a7a2-4793-9aeb-ffe76cca8665","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":64,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"fc39cedf-5f85-4d2c-ac21-d1982cb40612","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":64,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"c6e54a61-4618-47d1-8c49-a8d19084d4fa","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":64,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"019799d6-ce2c-4058-9fbc-d3ec10c87800","block_type":"box","text":"II-34","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ccf17e13-743b-4a46-92fb-98d4e49a7967","block_type":"box","text":"NM1026U-5978647-64/232","page_number":64,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"858ead70-64d5-4229-a171-e58a0aa90eff","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":65,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"88267410-a39a-4305-9794-817cbb625551","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":65,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"0b71dec1-8e72-4824-80fe-34b3bdf00e3e","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":65,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"a5dcb924-7696-4b64-a337-c891c344d4a4","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":65,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"7ffcc6b4-8c8f-4cc7-b489-00dadd399b79","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":65,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"12d9f838-52f4-438a-a48d-3294aac20326","block_type":"box","text":"be available for very limited periods.","page_number":65,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"00158c36-79a2-40ba-8751-99073e8adc8e","block_type":"box","text":"Investment in Emerging Markets.","page_number":65,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"354ec06a-6db4-452f-9311-0c71586d01b9","block_type":"box","text":"General.","page_number":65,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"38bbf891-690a-46ab-b64f-c80b73523304","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":65,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"33dbecf7-28c8-46c1-a4f5-304e2adb8aca","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":65,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"fcfd861f-907e-4e48-8e25-a4298059cbb2","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":65,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"90bb826e-463d-4336-ab8b-f7a711f69670","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":65,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"23941ae0-1b8b-42c9-8b0c-bdc5b8687d31","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":65,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"3ab70ce1-3beb-4320-b9bd-7123173f8de5","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":65,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"9863ef07-3e6a-4453-917b-2868653bdbdf","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":65,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"ac30ecc0-2a12-4284-8b71-7f323a847315","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":65,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"d3a5bdcd-45fc-44ca-a226-f0da58d52e3e","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":65,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"8ff0178f-4759-4a88-a4b4-6a5bb23dd896","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":65,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"6160652f-7e2e-4bdf-a321-e353499fc339","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":65,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"5ba9bff5-df16-481d-afeb-d82ad317c2dd","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":65,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"5918437b-5110-47df-b718-a1126c7ab1ba","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":65,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"5cfef2a0-5844-4e43-816e-fb862d8c3e86","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":65,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"ef082f23-b7a8-4d60-8a25-6709137e5eb1","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":65,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"2964275c-bff5-464b-9511-544688582b1f","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":65,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"3e7add5b-5887-4bd5-acae-cfc3c278b664","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":65,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"cb369e1a-47da-4feb-b6fd-bb700e85ea8b","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":65,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"70981ce2-e9e3-4bf9-9187-bb2dd583affa","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":65,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"e74a7efc-f486-4fac-b065-7d2e302d6caf","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":65,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"8948bb92-55fd-4c12-8749-2a2c34b74151","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":65,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"28d692ad-6c2c-4fcc-89a0-88a1587fc223","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":65,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"c924ed7b-dcd0-4cc1-b6f1-5b9a13bb48f4","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":65,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"8370f2aa-723f-4800-b1ac-baaf03e40514","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":65,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"afe27a93-3ec9-408f-8d6a-a5131e742885","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":65,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"2c33eb58-462d-41c8-aa14-1367e592adc2","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":65,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"2e83a7d0-6b94-4e6b-acc8-2476291374d0","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":65,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"c13356c5-43db-44b8-837e-7cbdec8b8da1","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":65,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"181c0ed1-b3ce-407c-9fcb-c36024c8df24","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":65,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"4dc57a6c-cf66-4cee-ae0f-f3faff329f2a","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":65,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"309cbcd4-4456-4d2a-8cf5-39f1a52a4950","block_type":"box","text":"volatile than investments in more established markets.","page_number":65,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"eea236e2-bdf4-442e-b05b-5b9b441ef2b9","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":65,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"36fb7d2a-9037-41b4-9c7d-d917bda2d98f","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":65,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"ac79965f-7fc7-4dd8-af5b-ba9db92aa7bb","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":65,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"9052f8af-47f8-420f-a365-50ac5c7ca71e","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":65,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"439006f2-6a56-4afb-a04c-79c4c4307d81","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":65,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"e6153df9-95f5-4dde-8951-b994ef2d69df","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":65,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"2a489006-2731-4d66-8a4d-d0021b184dc8","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":65,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"fcccc610-d4f6-42aa-9af3-a686f584ec60","block_type":"box","text":"acquisition or disposal of securities.","page_number":65,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"670493fc-f114-4505-8de6-b38c35c303b2","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":65,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"d4c5130e-a370-4a4d-9c3d-3b3a37a540cf","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":65,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"95bf0e53-bd65-4e61-8ce6-a2e9aed9fc79","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":65,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"39542f52-1127-43ac-b50c-36b3b3961558","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":65,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"ff5c516f-acf3-41fc-acf9-28739e05385f","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":65,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"315e486d-705e-4c70-8ca4-906b22cb6159","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":65,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"c97f7dbc-267f-4c8b-9fa7-b1609bc2c6a9","block_type":"box","text":"II-35","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d0982c02-3504-45c7-ac16-0a29db04fbbd","block_type":"box","text":"NM1026U-5978647-65/232","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e0208d91-b5ba-4010-9817-5e90e10eb9c4","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":66,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"64cfe056-1c28-4b04-8d6c-53be7bab2527","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":66,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"6de12efb-bd68-4097-954c-1516477bfbc9","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":66,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"9404e1fe-aa2a-43a1-a7c2-41fe22a2a4bd","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":66,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"eaeeb20f-3247-4303-b80d-517a45baf1a3","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":66,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"ace4a30d-b8af-4fab-8b54-459c40ba6c01","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":66,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"17098d39-8d63-4222-b276-fcbd171e1a57","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":66,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"1e4ac304-481b-4992-9f65-9bebda7df93f","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":66,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"815fde95-ac8f-461b-b135-a15a118f0fdf","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":66,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"138eba61-2d5b-40d7-bf84-172827345ae3","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":66,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"ecf7e27c-73a7-4909-8762-c3fe89f4fd49","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":66,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"90eb2795-ffb9-40be-8218-d1fefbe4ed3d","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":66,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"f7b718e6-e332-4612-bf6d-a6804851bd0a","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":66,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"0eeb4277-a709-4847-a9f2-737dc60f5b83","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":66,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"a9d97915-b700-4067-9826-30023c2c1b67","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":66,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"9ae84047-3abc-425d-9214-59d42110d405","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":66,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"8304039c-edee-4d6d-9d0e-5be8014ec8ea","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":66,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"4e0abc9c-0019-492c-8a13-bd89429b7952","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":66,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"59160185-925f-4bc1-b70d-ccb6179ca2e1","block_type":"box","text":"per formance of the Fund.","page_number":66,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"9a4d9f7b-1bdf-40a9-a78f-37d684a0e72b","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":66,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"ac99826a-57b4-4808-bd9c-7faee054a1da","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":66,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"1cc767b4-98ee-41bb-bdd1-76efce3136dc","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":66,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"d4782d3d-9250-4a7a-8e41-be6ad29a82d5","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":66,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"65130155-a36c-422e-a058-00f6bbeeaabc","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":66,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"90679676-b2d5-4b6b-bcda-1c0c004c0fec","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":66,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"1b808253-9c43-49b0-9654-fc3027d6d8dc","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":66,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"87246021-02ef-438d-946e-26f986ba5673","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":66,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"b68342d4-62c1-46ff-b4f0-ce58230f6d25","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":66,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"97b10832-97de-4eaa-b557-7ff5f30f5331","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":66,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"2a09c16a-ab87-4094-9514-f122eb671bdf","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":66,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"df2b9568-68e1-4cae-a954-f540df0bd0d9","block_type":"box","text":"affected by a variety of factors.","page_number":66,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"f2a724e1-df58-4221-923c-9b4234a84223","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":66,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"529d28c1-cb14-47ba-8de8-1fd57944a97b","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":66,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"90259aaf-d160-4002-a93d-5b77bb7b33bf","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":66,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"a65e3338-2358-4c05-a694-c4cf205dfc74","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":66,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"3507fad5-e8da-41b5-b4a2-30befbe25107","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":66,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"acfed404-2dac-470e-b237-552707af3d49","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":66,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"21f4cb4d-9058-47dd-99be-265a28a08aed","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":66,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"ad5d430e-1a24-4129-81d1-bccf00451263","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":66,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"6827199b-092b-4784-b834-68f971a7d240","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":66,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"f33d1e66-3415-4b90-b4bf-76edbeba808b","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":66,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"0b1a4618-f175-4903-bad9-f005390e2739","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":66,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"ec41bace-ca02-4e0f-aaae-450858061293","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":66,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"d4622556-1e2d-498c-8ba4-f4e94c2c9925","block_type":"box","text":"nations.","page_number":66,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"f9b10e19-4b22-44a4-a92a-ae0d2cde05c1","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":66,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"251d6761-d249-40ab-9018-9e95702be2b7","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":66,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"4bb43303-2dff-4d60-9099-b37a1eee284f","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":66,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"40d21d8d-f0e6-48e0-88f3-2835584287e5","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":66,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"e7a4bd00-4eba-4b56-9f9f-33a4e296b044","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":66,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"85fe3519-c858-49a5-8968-a0f01283ed64","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":66,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"12a1616b-fb68-4880-adf0-6cdd059d22e9","block_type":"box","text":"market Asia-Pacific companies.","page_number":66,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"88063b97-fd49-4d7c-ada8-eb6b7bd6b3af","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":66,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"649776b0-5253-4b23-bf87-e335798808ae","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":66,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"c02f23d8-aaa4-45e2-b377-98848ca43729","block_type":"box","text":"services for such securities outside such countries.","page_number":66,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"a2e3b004-0345-4528-ad2f-a5d4721a6d2f","block_type":"box","text":"II-36","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e61391de-b7ac-4dbe-9947-3ce842b0c730","block_type":"box","text":"NM1026U-5978647-66/232","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c3d65b72-5003-4971-833e-a73f3ac82784","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":67,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"fa410ad3-4d50-4160-986b-12eff4704ad4","block_type":"box","text":"to commercial banks and foreign governments.","page_number":67,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"3df49424-7d25-49f1-82f7-f928a90b371a","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":67,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"2c49aee7-9c93-42e7-ac48-7f8a29f4193b","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":67,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"a418bbe3-1b75-49cb-a8ef-6abdce73ffe1","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":67,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"af350f71-c56c-4d96-b259-9a667a52fbef","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":67,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"4daba34e-19e4-4ca9-88e0-d344e72d892a","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":67,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"fc1308c7-f6bd-4825-9da6-fed3d180af7a","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":67,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"111b0062-ec4f-4f9d-875a-de49cc603353","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":67,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"e3299990-8fba-4052-b5f3-8d5331a318b0","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":67,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"ec3e1e2c-5c01-4b2c-8419-f24a7343ac86","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":67,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"30d76ef3-8c5c-42aa-b14e-76cd16203514","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":67,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"09571c70-e429-43c1-97b2-28478c0106a8","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":67,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"bef67337-0ab6-45c1-92ea-4f348b481f3a","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":67,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"6989f4b2-0d3a-4ad3-9d89-45ed3e4208bb","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":67,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"6061652e-0aa6-4daf-ac54-b18133d88929","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":67,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"83f51d15-0b85-49cc-8954-b59b0a5fa1a4","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":67,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"38dc1e05-8be6-4287-84a1-8032d7570cac","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":67,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"c9ec982d-3b82-4391-9ea2-7e1d6b7f1497","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":67,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"8ed90fa9-1dde-4ac2-89fa-ab0e2090aed2","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":67,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"90deb44a-7d12-454b-ac17-ef2b82929b0d","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":67,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"9e15caa6-474c-4a78-9af2-258b83cdf476","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":67,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"1ed0e8a6-fafc-45f3-8a12-51ac5ab58cda","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":67,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"26964109-e1bd-4532-a28c-78aea1c353c9","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":67,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"cabea7ba-46af-4879-a615-cb07e5d016aa","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":67,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"2b57a6db-1885-4bef-887c-283c5eef0228","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":67,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"a2ff4582-f395-4158-aa94-929cbe474f7f","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":67,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"22ac98ec-d171-480c-88eb-fea16c2f6866","block_type":"box","text":"investment at that time.","page_number":67,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"61c8af05-ba67-489a-90e5-25bd0bebbafb","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":67,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"151678f8-d7d4-4364-8ccd-be3805441f2f","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":67,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"74fdea5d-1661-47c9-a68e-00d45c602cb2","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":67,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"d55fd4ac-3972-4eb8-bebc-a876f02a00d4","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":67,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"a58ecfa3-8176-49b1-a58f-f481cdb30ee1","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":67,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"76ae1f11-d662-42db-a810-e7b3f1c08253","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":67,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"d8eb7d4b-1662-4b24-b56a-4b38c22b9a3a","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":67,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"cbc01efd-604d-4943-8c92-12247d6ea417","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":67,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"939ac9f1-a94c-462b-9d01-c3d5201bb058","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":67,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"e7ca3d6a-4df7-4cf3-bae5-992678c08005","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":67,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"5ecd38d7-6b07-4d18-8cdc-d1be81f3de39","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":67,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"76f6b813-9c5c-425c-9b84-a1b175c2ba98","block_type":"box","text":"government).","page_number":67,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"a1e14a24-fb69-4ad3-bad6-f5952201f292","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":67,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"681b1ffe-67f6-4c63-b2bb-b20afccab23b","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":67,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"450abc62-fda0-40fa-9565-51d8fb1cff4d","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":67,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"2984fcce-29a2-41cf-a520-271bb0b9fa20","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":67,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"092c074f-760b-448a-b050-950a13fe4c8d","block_type":"box","text":"foreign banks and other financial institutions.","page_number":67,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"0d2e5e23-db70-4fc5-921b-b3385d07f869","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":67,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"75e15ff5-452d-4bd8-8173-22ddfaabb334","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":67,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e0cf0a29-0c35-4531-aeed-6f3336d92ea7","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":67,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"bb525143-d1ea-4c2a-84bb-0320c217a966","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":67,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"dbe69d27-e548-41bd-a49e-62cec0d53fed","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":67,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"3a48c0ab-5ec2-4462-ba95-1cd5ac4ef56e","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":67,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"d94c8f14-ece0-4891-9c6f-0568d9690f92","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":67,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"8b86c0d1-0b2a-45b3-b5a8-5e7730b2d3e3","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":67,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"f5591ae4-5df7-4712-8722-4f85e917628c","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":67,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"bfe08a39-e85f-4e6b-a763-bf1c95ca0e51","block_type":"box","text":"II-37","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b581284-bc63-4cbf-89c0-fbe3b174e2d8","block_type":"box","text":"NM1026U-5978647-67/232","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d8b43295-7b32-4676-8f56-c9d246e109a1","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":68,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"9d1030a0-4d75-4035-bea3-cdf0c6868af6","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":68,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"4a894de4-94ee-4bf2-98b4-db15945c2e58","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":68,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"fb857fd3-eb8d-4e60-b83f-f3dd8d434a2f","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":68,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"f623ea7f-9616-4c0e-af8c-5378c3d21890","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":68,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"b0093201-0054-4275-9794-abe3e1dde992","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":68,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"ff86ef90-ce10-46b9-af53-1ebc68bcde75","block_type":"box","text":"foreign securities.","page_number":68,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"597d6e9a-50ec-460e-b0d0-82918e3b91e6","block_type":"box","text":"Risks of Investments in Russia.","page_number":68,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"faa578dc-1c1d-4e3f-b49c-f06343dfac5a","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":68,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"7c749893-d8e9-4864-aef8-99a50ecf5787","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":68,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"e36fc9fa-927e-4bf7-9cf5-e9b2af2da6db","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":68,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"b9e110be-7461-40b8-84b7-58d447066d3c","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":68,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"2bbbcb9c-ead0-4123-aed1-e84f06cda92b","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":68,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"d09d581b-8132-4ab1-8670-721b50d7edef","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":68,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"4bfd3839-ffb1-4161-bdd0-45a8cbd16edb","block_type":"box","text":"developed markets.","page_number":68,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"8203f742-13eb-466c-ba42-7b10d7019402","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":68,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"c19d5a4e-e17b-4d75-9e40-e55f8f646b1d","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":68,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"13b257bc-fa79-42a8-b7a5-c6be8a6fac6b","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":68,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"feb77cfe-6b12-462b-8963-f665d31a88c5","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":68,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"5fda7b0e-71f3-41e0-bc38-ff1ff12182e3","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":68,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"24d32890-130e-4e7c-85a4-6688982fe5d3","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":68,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"f64afd5b-0d90-435e-8615-99818db5378d","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":68,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"c4c10039-c288-4e1b-8ad7-34af4d6bfb38","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":68,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"9b2c34cc-6499-4841-97b1-dc509ffc4366","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":68,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"65522311-a550-4bac-a2e4-2fd0012af2dc","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":68,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"1d68f6cb-3bc3-486d-895b-a936a671f30b","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":68,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"104bcf26-10cf-4255-bc31-bbe3bb1d522b","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":68,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"6f1551fe-dae4-4a12-a170-4900ac5c4a5c","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":68,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"becf64ce-78b1-47d0-9c50-3cfcc6108c6d","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":68,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"842eaa0d-25f9-42de-8c64-bf83e3ad06e6","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":68,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"dfbc1a49-5e93-40b8-b0c2-a9efdbb7acbb","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":68,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"713d40b5-b703-49af-8eb9-5e415ea0b8cf","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":68,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"8527ef39-3985-495a-a2e5-3ecc729b1d61","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":68,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"0b177dc7-0e3d-499c-b4cb-b51ab4cc7a71","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":68,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"7ceba11d-078f-4379-a917-04f7505fcd69","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":68,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"a812b570-6ae6-462c-9381-bd3a7000a8ce","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":68,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"39302af7-9e14-46df-af7b-1e87d1bf0022","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":68,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"d009853a-6267-4c40-b948-23ba1877d1d2","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":68,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"a9732b50-3793-499d-bfc8-24d4432b4f9e","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":68,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"96549c62-857f-4c72-b1fb-cd92d0d202df","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":68,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"9c48ef7c-ba9b-4b25-9844-1597132e62aa","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":68,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"3410a981-d398-46c5-a01b-ff75544dd4a6","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":68,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"267187dc-e5a5-4925-b58f-cf2bce0def6e","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":68,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"3d52844c-ee5b-4bbe-ac92-31c57a08e9e7","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":68,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"9402f5b9-a0d3-4d56-b371-aeaf1b222612","block_type":"box","text":"sectors globally.","page_number":68,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"a10197c3-c174-4a07-8307-d8d5f540b9b4","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":68,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"fb680d8c-0123-4997-9d0d-04c9687f6034","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":68,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"bd4ca8c0-ca4f-4b2c-be87-2e43b7b731b2","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":68,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"e4afde0a-104e-4110-9ef2-3de2ba8c8bd0","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":68,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"1b5c2481-29a0-4419-b726-5a94a9b35643","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":68,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"d23cb7e4-c7b1-46fe-a1ac-d729290b2c7b","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":68,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"ca30e5b2-e721-4614-b824-1e96df5597a8","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":68,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"ab46b90c-71bf-4218-a04f-1e3d9e65e462","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":68,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"45f9f375-73da-441f-9ab8-99410d2ec8f5","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":68,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"092807c2-2d5d-41bc-ae51-e2a8d7b980a2","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":68,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"a301935c-a5a0-4cdd-bb50-bc8deefad3d3","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":68,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"823a55bf-e6ad-4a55-b70a-a122fa635e0c","block_type":"box","text":"II-38","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c63d3a8-069e-4162-b62a-1c5681a96569","block_type":"box","text":"NM1026U-5978647-68/232","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"deced7bf-4fe6-4a81-b389-1d45c882ab7b","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":69,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"c467a668-be3a-4255-93dc-3911c6c0cef2","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":69,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"d44c5330-e36c-4e45-ab26-6523a0f5c7c4","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":69,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"1d6999f4-1300-4212-b807-2eb71b7be0d1","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":69,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"adcb6145-b95e-480f-8251-17b45a027019","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":69,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"0c0a10a3-28f5-4688-8164-07ad344194b9","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":69,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"7742f56f-fe61-4a81-9f5e-6cce2ec5554e","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":69,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"d6777817-9ce1-4a42-9393-00abe96b0f85","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":69,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"165b76be-80be-4ce3-9d74-e68214f06c67","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":69,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"5c454a5f-7a13-42f9-9087-3ee8c1452015","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":69,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"a6307792-ce63-4365-883f-af3b7cf3c2b0","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":69,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"3ec56b1f-d3e4-45bc-a530-1d8fdbd4c150","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":69,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"9d527afa-3ff9-4dc6-bc96-384dc693396b","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":69,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"7b62e498-6b92-4f1d-814e-fbb1e707a63f","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":69,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"3614b530-4bdf-426e-9d31-3fd46521d4f8","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":69,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"924188b9-1b84-41f9-b51a-362b02c2b038","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":69,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"d5981af2-942b-4aed-a113-01dac0694943","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":69,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"fbdce911-be8e-4010-899d-69455895b95e","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":69,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"1953fa5f-5b20-43cf-b671-93c0d0fe20b8","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":69,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"2ff603a7-4cf1-49ca-bf00-c48479ae4e9e","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":69,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"9ab5c7cf-172e-4528-b55d-b194ff1ed7c6","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":69,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"a867a8f6-c8e3-4086-bb42-25a21c16ac0d","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":69,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"87e19b95-147c-4123-9e7a-9d06a8761c7b","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":69,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"623126d7-4ab6-41f0-8f43-4bc595e66cff","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":69,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"530a80bd-d7f5-4abe-82b3-adc1979844c8","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":69,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"ec72bc1f-c980-4c49-81f2-a490d9b6f82c","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":69,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"4fb9d3d2-f445-41c6-841c-919a42e2d5d5","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":69,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"f44ed069-4a39-426e-80b4-e55ee89675cc","block_type":"box","text":"impacted.","page_number":69,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"b32ec2df-5778-4580-9484-f1a743c52e89","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":69,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"520eafcb-64c5-4f88-851d-4a4b751e92e7","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":69,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"adc7917c-6e9f-4958-8fc8-e71ce566cbdc","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":69,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"d880b401-ae5a-4f78-b48c-056d642e57bd","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":69,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"f9f5afb2-6238-4706-a369-ab42b2658c73","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":69,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"00799da3-5acc-4bc1-a013-9509643d7f19","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":69,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"13715318-251a-4774-9ead-3238faa6bc74","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":69,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"b99650f0-4c65-40c7-b9b0-e4c348cbea88","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":69,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"08c755ec-7d80-407a-81d4-b14bac63d73e","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":69,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"6315aff7-a3f4-4d52-b7b0-69ff901a1689","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":69,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"d024b678-feb9-462d-af40-1776048859bf","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":69,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"7670751f-326d-4279-ba38-dfda239696fb","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":69,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"468e9561-5165-49fc-b566-e2a44e2065e3","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":69,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"b58185c5-57e6-4db8-869e-f80b3b94b167","block_type":"box","text":"economy.","page_number":69,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"6f117681-c0db-431c-ae89-5eddc8a30c19","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":69,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"c47cb03a-b0a6-40b3-8a36-abd576afbad2","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":69,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"59a6f77d-a72c-45a2-a00e-28481984bbc0","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":69,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"95910daa-e656-4189-92ef-14bcc70401e5","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":69,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"1ea6d260-e6d4-4802-a20c-1c389d3b9a0e","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":69,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"a8b946a9-ed24-4923-a284-b7981f1da634","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":69,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"2954a3cd-81df-41b6-bf1a-8dde2ee8dd77","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":69,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"8c50ba73-acd4-436b-94c4-e902deb0062f","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":69,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"c2f85137-b0eb-4c73-9fde-f9a6d857030a","block_type":"box","text":"typically the case for investment managers.","page_number":69,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"064cf07c-cc2c-4b5f-a3ae-30912660eccd","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":69,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"4b0fce01-e1d9-4ca4-a6c2-31ca14c5b3db","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":69,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"4e2138f1-69cf-4cd0-af84-cbf779fbe452","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":69,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"907ae30b-7956-490f-8cb4-f85e301b2fc2","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":69,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"8fa567fa-2781-4abb-9894-6cacc60c999c","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":69,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"f13ee8d6-a653-4681-8090-6dac28edef72","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":69,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"fe111e1f-f27e-44e1-bd95-d92b3467b8d5","block_type":"box","text":"II-39","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"93f888eb-dce3-403f-91d8-691d27eee797","block_type":"box","text":"NM1026U-5978647-69/232","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bb22c09c-3b43-4c6e-9dae-76102ca40163","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":70,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"16aaafd3-f81b-4020-860b-c85fa7407dc3","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":70,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"0e8fb0cd-6b19-4017-90fb-bacbc486f094","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":70,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"26d18e8d-8a87-498a-ac76-723899997113","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":70,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"1cd30d31-626d-4857-bfff-0cf4594b4547","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":70,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"cade4737-1276-433b-b0fc-86fb120881a7","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":70,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"cdb5e6ec-a893-4337-b0c1-4b84f6b475e2","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":70,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"beb89711-6695-4445-8235-e90fed2a1240","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":70,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"3cab8637-84da-46b8-ad22-1104fd3da531","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":70,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"89eae809-2f66-4b70-9ae1-1f70174ba15b","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":70,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"eb0a234c-2983-40d4-b487-09db714be3f5","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":70,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"296dd6c8-e3ba-4b11-ba29-cb7edfd15dfb","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":70,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"b0a5659e-d319-4725-bcf7-4cecdd9b10a5","block_type":"box","text":"will be indirectly subject to those risks.","page_number":70,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"b5682202-6ba2-4e15-b43c-eaa617118543","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":70,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"1ed4ef23-b523-4d70-9462-d451b7c47e5a","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":70,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"23ac492e-17e7-4b25-9de6-a9db6c0a02dd","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":70,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"1e433ae3-2b93-4203-808d-25f56ba992c6","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":70,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"33c007fc-ba92-4ebc-8486-0395c5fbc000","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":70,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"3a17e3aa-41b4-40e4-8fd2-f993bd7089aa","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":70,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"12a04afa-d3ce-4db1-8e2a-3ca818fd63d6","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":70,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"09b7b67f-aa5b-446f-85b9-9e90a432a393","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":70,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"ae3bb742-203d-4440-88ff-781b1a20d0d2","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":70,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"151de6b1-6c06-4e1b-8ffa-9a2072f44606","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":70,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"67d1188c-4eb8-4123-80a0-17276bbdcaf8","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":70,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"37d4ad4e-0067-4e75-95f1-c8c0f54df7be","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":70,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"298dccea-5c51-4aa6-863c-5ee5f0be6598","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":70,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"63ba9136-e207-4712-9e9d-f665fff1fa87","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":70,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"2db455e3-dc69-4270-b9ea-7774c8a11fbe","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":70,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"7f4dd585-2a83-454b-a79e-822356746632","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":70,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"0ff96b44-ce2e-4396-bfdc-5318d407b10b","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":70,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"af2a5a85-a1a9-434f-8f65-ee7edb7bce55","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":70,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"799b59a8-06c1-44ff-88d3-e9a8c7a97b77","block_type":"box","text":"impact on a Fund’s investments.","page_number":70,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"09ebd5d5-ee76-4dda-b373-96efeda2127b","block_type":"box","text":"Brady Bonds.","page_number":70,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"72a8cde6-d57a-4135-a42c-70dc77f8cc1e","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":70,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"5b43fbd4-2070-4ef7-bff6-0731414ad51c","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":70,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"ddfe947f-868c-4c1a-b307-2acf072cf360","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":70,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"afd91b32-6bb0-4728-9161-cced3ab05146","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":70,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"8a8fcf03-d308-44bd-8cef-b103d726020f","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":70,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"a59afeb5-f301-4e0e-a40a-562beb3b74d5","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":70,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"b81e3d0d-4a66-4282-bef5-8307e9bf03d0","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":70,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"bdb51865-17a2-44f4-b938-e1918007a973","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":70,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"0339a789-89c5-4e26-a5cb-2eeb82e8f300","block_type":"box","text":"Venezuela.","page_number":70,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"00330cc5-6aaa-4beb-b206-7048e3910a35","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":70,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"1dd13f46-8c1d-42fb-a17c-1324720913ee","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":70,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"f13c1ff8-a466-4100-9d1f-68b94b3324ec","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":70,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"01fd1839-9643-4545-b2bd-6a06c8691af6","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":70,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"3cb20383-c293-48b5-82ab-87cfdd1aaa22","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":70,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"4d8e536a-1574-43f6-b6c1-3735946e8f5f","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":70,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"6cd55450-87a1-4dcb-ac36-77ab6153dd31","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":70,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"76de9471-38bf-420d-bf2d-9aded9852179","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":70,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"f3650d98-b590-4cb8-badc-bd9907536cb7","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":70,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"69804dd4-f6b8-4d29-ae40-6fe5cf30fb7b","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":70,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"9904fcf8-0873-4a84-97d4-8eaa79750059","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":70,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"600cdd28-e55a-498b-b2c5-f7899e24f9dc","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":70,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"dc45e62f-e09f-48be-88ba-a35618e5961b","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":70,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"80da740c-7b94-4f7b-8d5c-06c402a49e87","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":70,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"6a80a606-262e-4d81-a86c-6e97c8438ff1","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":70,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"c5c669fd-a94f-4e02-a8e4-af4191da85cc","block_type":"box","text":"II-40","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"99f2f581-3051-438b-b9be-762bba9d09fd","block_type":"box","text":"NM1026U-5978647-70/232","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"12119b7a-3ba5-4753-849a-26526187d733","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":71,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"bde82fef-c283-4719-8b10-c2d16be99080","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":71,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"cce4a995-0b0a-45fa-99cd-9dbdeb6772bc","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":71,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"5e28f83e-d0fd-43df-81c5-de4884bf688f","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":71,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"9fb1205b-d97d-4cda-8513-fbaf66b82508","block_type":"box","text":"China Investments Risk.","page_number":71,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"0637c2fd-924d-454e-b304-917f0917749e","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":71,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"b6de0e2f-d211-4b01-adbe-885baeac6292","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":71,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"306bb673-3567-4ef1-beb2-33495d2bc09a","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":71,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"8e8e4376-6759-4d69-b824-365c85ddcad3","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":71,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"b25a9c61-0c32-4372-9453-aadc128e7d13","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":71,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"c7b290cc-a358-4779-924d-6fe44002dbaa","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":71,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"ededca01-ac76-4773-b20e-30e3ea12c587","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":71,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"4b20fd0d-6456-47c0-856b-ae0c0fc9817a","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":71,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"ab8fb85b-a860-4298-ad15-cd3873f30a65","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":71,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"eb7fdc16-8acb-49c0-af8b-70165fda996c","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":71,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"f569fbc3-1be8-4acd-a20d-5582c7f7a04a","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":71,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"740f79af-6b6e-4965-99dc-e56e5ff374bb","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":71,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"8630097e-3620-4811-9a08-560718f1b327","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":71,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"a043b38d-4217-4a03-84e3-bad1cf2ed2a3","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":71,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"8821eabe-b446-4671-bf68-fa7ac0e6b2b3","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":71,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"6b0042c2-2295-4341-9aaf-9f8f396e5dc7","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":71,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"d166cb76-e572-4b80-a302-02e941ee507b","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":71,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"20679440-7b3d-41bc-bd89-dae82f498e92","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":71,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"7197544f-6b3f-4bea-a330-7f8b821aa35c","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":71,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"9cb05b03-9975-4cd8-9340-2fabe13d3815","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":71,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"365a013d-75af-45b4-8643-4fc32994d5d7","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":71,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"4c08f8a1-25da-4989-973b-b0cdeba114b0","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":71,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"3086d755-d723-456b-83ca-3e303a303a79","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":71,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"07da105c-88b5-446c-a00f-927f48719de7","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":71,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"88dfd485-bca0-46bd-bfed-a9dc7b381473","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":71,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"cbddb47f-7a7d-4047-97ef-f687284d46b7","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":71,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"04f38340-69cd-4ae4-8605-aa1e9620b55d","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":71,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"37e7f4e3-c8f6-4037-8c28-a1abc856a60d","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":71,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"3d48ca93-7aff-4b5d-be16-2e64f02cae3d","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":71,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"fafe5eb9-9e24-41ce-8821-3b377f872d40","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":71,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"a949948f-3050-436b-92b3-546933a7cae4","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":71,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"ef472334-ecb2-4f60-89ad-3816afd76de2","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":71,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"542c4481-b5cb-413f-bbbb-6457a9d3ef5d","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":71,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"d9297f8c-e2b7-4552-99d8-d6fb4ba72351","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":71,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"781774d6-1203-48e4-b3e3-f010436d8e7d","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":71,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"5ca7db43-9e4e-4aec-ae84-5779d8303fb4","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":71,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"37fcd02b-586b-4c62-8a0d-311ed0018723","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":71,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"3c81528a-02de-4f61-982f-a329632db14d","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":71,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"45453d4a-040e-4de1-a17b-f1fce43736a0","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":71,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"71f3d336-2a98-4811-abf3-d0733ac5a4e2","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":71,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"37aa41ed-645f-477e-bf9a-da062afc91e6","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":71,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"2a71a096-4414-4470-95c8-9f329474b264","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":71,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"64712f13-2e8a-4850-9198-4ff211485389","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":71,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"04a1501a-3709-4bf7-b3f4-4dd48c7983a8","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":71,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"12ac52e8-301c-4a37-a17f-51384b843efb","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":71,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"4e149519-8be4-4596-a714-b14611d9547e","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":71,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"e27432f9-9e48-4dc9-85e8-0a24357e611c","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":71,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"35328d77-f3a7-4e82-97c4-38e3e024e0d1","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":71,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"0d37a8b8-77f7-497a-b988-707973318d28","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":71,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"2060a0c1-3f6c-40e7-8fb7-93edff18d9df","block_type":"box","text":"sub-custodian.","page_number":71,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"38ad9d5d-fbd9-49a0-967f-766ed7be7e36","block_type":"box","text":"II-41","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3782225c-6109-4e36-a06c-4e54246a7a76","block_type":"box","text":"NM1026U-5978647-71/232","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dece86a8-13f1-42f8-85ae-fccd0fd5fe8a","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":72,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"2cc4b863-282e-4959-aa44-01f79da7b23a","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":72,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"d66de1f8-2d2d-46b7-bd50-fc59ee85f827","block_type":"box","text":"on investor protection considerations.","page_number":72,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"1b3fba56-7206-477d-885f-568d81dfe820","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":72,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"0d7556ab-cf46-40be-b0e7-a35c392e92fd","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":72,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"cc5fcebd-bdd4-4ac2-9ed4-6cea991f5e85","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":72,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"5034bd47-13f4-4e56-8977-ee65887ae845","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":72,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"929b6583-bb6c-499b-b20a-6aad12e24ed7","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":72,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"ea3c637c-0196-4d8e-ab32-1961cfaa7c32","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":72,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"f7b92aa5-b11b-4769-bbec-8319369def5d","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":72,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"522ad7fa-d4e9-4826-b079-7e2cde49e26e","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":72,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"c4e8a384-0974-4b37-9811-a58844881c9c","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":72,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"87eca12d-2628-404f-9c40-2ef0e85ac5ed","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":72,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"b6e5bd38-cb1e-4463-b99c-7831f2e61c67","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":72,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"3fd633bf-d964-44b0-9cf8-f05363d47f02","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":72,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"d30c77b7-4fd9-4bef-b4d5-6e9876e502f1","block_type":"box","text":"accounting firm.","page_number":72,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"1d10d4f9-31c7-47c7-a515-a309c34f4092","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":72,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"675d511e-b336-40bb-9c7a-f19eaaaae2db","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":72,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"0b77e671-9890-4cbe-bce6-a917549cbe97","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":72,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"07801221-40d7-470f-941f-6f4401a45736","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":72,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"1e496335-a0f1-409d-a231-241d78b3ca16","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":72,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"4bcdff33-0fe5-4aa4-9a9c-e4ef11fb99f0","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":72,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"bcd280d9-65c8-4cc7-bb33-a571a989dbbe","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":72,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"71f52980-ee47-47ad-bb2a-b8372cd6cdeb","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":72,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"2c1fd457-9671-4f6a-8d09-1c9fe6bdaf8e","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":72,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"07e88e39-d41f-4660-a00d-0ed10733bb09","block_type":"box","text":"RMB (“CNH”).","page_number":72,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"7261ec7c-6b67-45e4-8c0d-4eb0efd06760","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":72,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"3c6dd86e-d766-405e-87da-370e55cb8480","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":72,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"93bdb750-9815-4c49-bba4-31952f5cc881","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":72,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"16af439b-54a5-4f65-953c-369394d31e58","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":72,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"906a205b-48fc-49fb-8feb-c1957fd34158","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":72,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"a3b51274-df85-4ab0-b520-1375ef640f77","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":72,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"ce65a02e-53ca-4569-a440-f5e15e8ca9aa","block_type":"box","text":"represent equity ownership in the operating company.","page_number":72,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"a28e7665-b033-4e41-97e0-1fa389e2bb97","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":72,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"c09e2c34-c7fd-4be8-9626-df017471ac09","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":72,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"1d916525-e3e4-4b19-b7d3-a1762f2fa0f0","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":72,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"14f7fc43-8229-42e3-bbac-dd08067788d9","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":72,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"6516a5f8-0fbf-4e93-9a56-5ed83197a4f9","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":72,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"b7805fc0-33cc-41bf-a54f-6151cd51f69d","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":72,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"aeb80aba-e66a-4904-bbb8-8638878d689f","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":72,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"1a20caeb-3503-4e53-99b1-eab4610bc2b0","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":72,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"e64a2cbd-bf12-457d-99e5-a9a4c168dce4","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":72,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"9950a445-34d9-4b86-9b1e-cf435fa380a0","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":72,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"e9b32cfe-a5ce-405d-9cac-c7c7de13e879","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":72,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"ee3e28ef-124b-484f-9b41-515a8f7227d3","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":72,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"02cdf2e4-35e1-4649-8ec2-7384f88d0651","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":72,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"db9e3fe0-61d9-4a92-b342-ef4d0ab2ebce","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":72,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"f477581c-d4c2-4185-9ffd-94a3641da4c1","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":72,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"3114c439-22d7-4dac-8469-d445951f6163","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":72,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"85c6f99b-3ab7-44a8-be85-737dbb4f7ebd","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":72,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"01d0f060-05d1-4005-807e-7b92d19f6158","block_type":"box","text":"losses to a Fund.","page_number":72,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"58e15a50-9339-42a9-b6bb-2167538f2506","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":72,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"ef06e173-77a2-4329-adf8-3f71125ea6d1","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":72,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"fd4384f9-9aae-466f-9cb6-d71b5cd7ddb2","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":72,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"d0be2e0e-bfa1-439b-a85b-40ceeb33880e","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":72,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"08ff8c90-bb05-4163-b31c-4c50b7eca19f","block_type":"box","text":"II-42","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8b2389ea-ea3f-44ce-a0d7-f4f926213ac6","block_type":"box","text":"NM1026U-5978647-72/232","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9188d35b-2623-4cae-9a97-5070c2122342","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":73,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"39c710ef-48ea-4982-ae7a-bd5fb743fda3","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":73,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"0a4618ca-3cb8-44c0-97bf-c49cdcb86047","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":73,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"7c0468b9-a6aa-4eb8-8787-126f86f401ea","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":73,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"26ffc2ed-f1b7-4e0e-96a7-6f095f3d45f5","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":73,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"318bd02b-2efd-47ba-9e1e-441881606893","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":73,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"bf2f4132-34a4-471f-92a0-b52c2ff0501f","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":73,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"499250c1-806c-4708-ab1c-926ba221e433","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":73,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"f5921c1b-cc6d-4f16-a3f5-e05ff7f1b84d","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":73,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"ee15336c-dac1-41cc-93ce-825875322cf2","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":73,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"4e8b7d94-0c0e-49d6-bf65-81d8414b829b","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":73,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"060d7624-4851-412f-9b63-1d2fbe77a36c","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":73,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"b33fa32e-db91-48aa-982b-13c58ffad862","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":73,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"1ce845b0-c6f2-4935-8ff1-b85fd1268f10","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":73,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"8c9904cf-6881-4fa1-b96e-5ba6ca55167f","block_type":"box","text":"such companies.","page_number":73,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"9324fbb9-b63a-4f64-b5a0-9e45e6f3628f","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":73,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"f63485f4-40b9-4c81-9335-99636779f4c3","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":73,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"6399ddbd-8dc6-4278-824c-a09e844a842a","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":73,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"a7c96bda-c5e1-4470-857e-b8311978c930","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":73,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"c5715caf-2eea-4047-8d83-d6e066c1b51a","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":73,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"a961d1ce-0299-4f70-908e-3b5c0b58c595","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":73,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"fbee1c56-9055-4331-b4b5-d36a70c7347c","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":73,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"97a9cb92-6450-413f-ba66-efd1259a0614","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":73,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"6836ac89-6dc7-4ce4-9720-32aab28338b9","block_type":"box","text":"standards.","page_number":73,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"dd48fd7b-f3ea-4e2b-9093-fe0aac6a5479","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":73,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"8df8eafe-f138-4030-89a2-95547c898fa1","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":73,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"421cdbff-925b-4986-b261-bff39e531440","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":73,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"2ea6fdf8-0bb9-4ae4-aeb5-3b5dd270aac8","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":73,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"1b4d665d-d60e-4c7c-a53e-f4197375b987","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":73,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"9b8410c1-3e63-4a6e-a5cc-e82c360d3c7f","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":73,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"189f8c6e-7653-44cf-8c69-ac563a444cf8","block_type":"box","text":"General","page_number":73,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"fcc49d2d-d735-4de6-b185-1159224f41a3","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":73,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"102ef21d-4186-4e7b-9f53-63a768717615","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":73,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"6508b895-e754-4eeb-883c-b7d4204c54c0","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":73,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"d06f7745-52fd-455f-bd07-da2e832cbaaa","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":73,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"79f64736-cb57-45e9-8d86-1db043b36604","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":73,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"ad2320df-8e3f-4939-babd-6d260a66c108","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":73,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"0f943076-1c1d-482e-8976-407d0be64c13","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":73,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"6bfaed74-a321-4990-b68e-9da9140463ca","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":73,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"6eaf1a00-e4bb-4133-90af-3b2183a3c82b","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":73,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"934f0f08-c41c-4b01-b922-0390125e55f7","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":73,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"f4844ca9-6766-46b7-8d3d-6286aae9966b","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":73,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"0db7b318-3f20-4545-a233-75b9f3ac6e51","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":73,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"0d0bc74d-a9a7-4b10-b020-f8e04da23971","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":73,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"326dbb64-9f13-4a2b-a45d-56097ed681e9","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":73,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"b2a643a2-8bff-4928-9dc8-408f65265eeb","block_type":"box","text":"company established by SEHK.","page_number":73,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"98285957-db7a-45dd-8d2b-465c90ff9d9f","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":73,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"4a64d107-21cf-4118-a078-758aaa0f5149","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":73,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"98604d55-cf90-409e-8ad9-a732f4040b15","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":73,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"7f288ca2-7adc-4d27-bd8b-235f2e3da25a","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":73,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"d043f37c-3401-4450-8894-008639f86dac","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":73,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"b4992b5e-af19-4421-9757-876c97a59cc6","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":73,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"82d4b85e-f625-4e3c-a17d-8b3b819d766d","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":73,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"b1c9d17e-7700-4aba-a662-cf935619e8c1","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":73,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"279741f4-3593-4d47-895a-1becc1f632be","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":73,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"0658da1f-f0e8-483c-81e6-c450e0a0e2e7","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":73,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"98600820-72e9-4ed2-8d97-ec0ebd21fb8f","block_type":"box","text":"II-43","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"904a8b82-eb60-493b-a857-a50224c8a817","block_type":"box","text":"NM1026U-5978647-73/232","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c9df37a6-fa60-4d6f-adab-5a5a15b72859","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":74,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"d0e6fdda-1126-4b5e-8d5e-46261e8c9659","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":74,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"f486ffea-71ff-4ddb-891f-fe719b53355c","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":74,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"f9207fe1-c425-4f1e-82ff-802196218034","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":74,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"078e2219-1dd3-41e9-a1f5-06988531c449","block_type":"box","text":"i.e.","page_number":74,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"349c77e5-578f-4371-8f42-a36a77fd303c","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":74,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"2af7f583-4e8c-4e79-a505-75c51573398f","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":74,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"07601c4e-1339-453d-9747-6a896bcfa42d","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":74,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"1d1f07b0-1973-43c9-be20-717516c77a8f","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":74,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"e4e71195-607f-447f-821f-c8e3385949f9","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":74,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"38b973eb-cc9c-417e-a87f-8fd72fce3dcc","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":74,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"24ff32ea-734d-4cd1-959d-542608a06014","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":74,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"7877460f-faa1-4cb2-88b4-d501803ef463","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":74,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"3498996a-c4dc-4cc6-ae0c-7b3e867aace6","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":74,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"3e153f25-32fe-4e98-b777-35781e8d9d5f","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":74,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"8eaa6184-9a69-46e8-9560-d5cb62f33ea7","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":74,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"597dfb0d-4233-4edf-9f13-0980730de74f","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":74,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"ee266642-9bae-4e54-bda9-83548e614105","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":74,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"4d347824-e087-462a-a25c-e3a405506602","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":74,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"4295dc7a-b800-49f1-a0ef-e4430001b332","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":74,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"854a9c36-a208-476a-a0ee-f5b0d127f46b","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":74,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"74ece844-f64d-4c8a-8376-40edf927dd98","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":74,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"88a05d2e-fe51-4f68-ada0-ec6bbf4d8158","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":74,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"a79b8a5e-3db3-4028-9e79-96faa7e6d1f9","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":74,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"bbd4555c-25a6-4c0d-a31a-123fe0303e0c","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":74,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"680d96cc-21bf-46ea-869e-9d2845f27f33","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":74,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"5e1d4d7c-0de2-4bae-b95e-7805441ae0da","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":74,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"ca7df18b-7d78-407f-98c9-8ee2a7475923","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":74,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"a2c540e8-d4d9-4d87-8d6b-06f4398c24e3","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":74,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"e71489f8-2274-4166-863a-f7fbe625f12e","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":74,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"ff8108ab-e33f-4dbb-b2c4-2ed40faacba2","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":74,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"6dd6549d-5cac-4d56-a505-5ffe6f671f4b","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":74,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"b621f9f0-caaa-497f-bb89-0b1f6df6bdce","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":74,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"d297f0c8-8ceb-41cc-8b86-3fe6f53d5195","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":74,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"b4025aa3-251a-42e3-b0c5-03ccecbb6010","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":74,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"2eda4198-859c-4703-940d-cac722224376","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":74,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"394f7106-794b-4bf2-b34c-d0136ab3ba50","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":74,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"c6d62c14-2ead-4c40-843c-07a32357d66c","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":74,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"d1cbed2b-a5cd-4e61-8683-44adf1171d4a","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":74,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"498ca592-eb86-48e5-89e3-2fb312531116","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":74,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"f2c098bf-054a-41bd-9461-4c9c93a4e3ae","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":74,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"987b0a54-ce89-40ab-896c-b27f0d2b0ce2","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":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"d42ffbac-7af7-4e3d-af52-52456e8e7b0b","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":74,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"15b8ba07-6595-4eee-8d47-defeb0d21525","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":74,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"c00c798d-98df-4e6d-85b0-ee66930e43ee","block_type":"box","text":"PRC.","page_number":74,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"fa495b61-fe91-4985-b949-06712dec2ba7","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":74,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"6b36c351-2bf2-4b8e-bf75-02dd5b3f8bb7","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":74,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"480b5bb8-5c1d-45ac-a93c-c63fcbb03617","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":74,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"e9a3fb07-f450-4186-bde4-ca66a00006da","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":74,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"e9cf66fa-034b-42e4-a886-cc70ea0d3d19","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":74,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"3b0bec94-3be5-4899-81ff-3abf0e3f7ced","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":74,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"75f60c00-62ec-43f8-a754-92eb7949c549","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":74,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"78d4bd4d-67a7-4f6f-bac2-32a463b8df30","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":74,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"f274a6fd-7002-4bf6-a572-0de7133c6b86","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":74,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"7e1f0496-00f0-4644-9220-a00fdaf6b624","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":74,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"b979b0cb-234d-401f-be3d-ddbc462f400e","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":74,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"8b08621c-bc09-420b-8a83-881bf758d8e8","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":74,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"668fa064-4bff-4878-bcc1-411c53946a62","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":74,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"eda972de-f660-4ef8-a2d3-f4cadd1166e3","block_type":"box","text":"II-44","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"069b8d7d-cdfc-4653-be6c-b5da70c56444","block_type":"box","text":"NM1026U-5978647-74/232","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dc4a6610-fa83-4786-8871-e8f9b4b086f2","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":75,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"737505d9-a022-4fb5-87b8-df62aafba6bb","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":75,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"cd9e30dd-3c84-4600-8cb7-4aa7e9319797","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":75,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"9105d5ed-9350-4f42-9a9d-adf39b393c43","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":75,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"4377143b-7e6f-424a-a68b-ec95fe881740","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":75,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"c81e4d8d-f336-44fd-a914-23ef9f1617e6","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":75,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"6e7d4238-c494-4fa3-879c-6cd23ab3b644","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":75,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"2caab57c-7590-499e-8928-8a2ed1b9cdfc","block_type":"box","text":"Suspension Risk.","page_number":75,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"815ff72c-9221-47ba-990c-7debfaad5aba","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":75,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"300907e7-13df-4b55-a98d-7089ab08531c","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":75,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"621e85a1-5878-4409-9c5a-29fbef5f324b","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":75,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"51acc2bd-b43f-4daf-a435-4278de3c9b66","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":75,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"2b147d59-01b3-4303-b6e5-b3af838c7fe5","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":75,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"b5a060d1-879a-4b40-9ad2-cde90657b6ae","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":75,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"73c5fe11-6e62-4c3f-8b35-a42a7c8e53fe","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":75,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"23124811-0f20-46c8-90a9-97a7a3d8ae23","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":75,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"e01eaefc-39a9-4bd7-a61c-c1b3330115c7","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":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"97c9106c-2ad5-4153-8702-116bd66e81ba","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":75,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"15887cac-f485-4f4d-9777-0eb368265df0","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":75,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"8d99c401-e59d-4201-997f-4894550f0c6d","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":75,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"6f0ec2a7-fd97-4f24-a509-6bf2ef9de63a","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":75,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"9049deec-168a-428c-aca9-44365af42280","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":75,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"af623dbf-67ec-4629-bb10-a0aa11de31ab","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":75,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"2a346792-97eb-4e45-82cd-510eba3dc6c6","block_type":"box","text":"A Fund may invest directly in the","page_number":75,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"7c21ff92-333f-4206-926d-dfd1dfe83928","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":75,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"6d4739a9-4879-4e87-92a9-d3f087c4ce7a","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":75,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"4a1bc2c3-d08e-40c1-bdaf-eff93c93ad30","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":75,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"dcbe27bc-25b2-4ea8-8dce-e7e791d9e570","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":75,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"e4787f98-8fa3-43a3-b0ed-ab0cae20d3ed","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":75,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"4642cb32-8951-48b4-8070-70b29a6ad379","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":75,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"6d2691c3-fb7c-4914-b57f-d253884176d8","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":75,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"a56f8fae-b21e-4dae-ab8f-fc1a441303c3","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":75,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"fc2a2323-ac88-4a3c-8fec-a0d0198cad77","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":75,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"13391aed-f4f7-4dc6-866e-67ad6b5fe312","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":75,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"4c286462-7840-44c2-9fc7-2113b5e831b1","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":75,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"727798f3-6576-4b55-9a2c-c8c76db7e024","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":75,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"48f52497-c715-4b56-b052-7d46a2afe0e1","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":75,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"b3c92155-5ce1-4ba5-881a-14f94f9fdf78","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":75,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"4dfde26a-f248-4c86-81fb-bd5bcf6aa9c7","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":75,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"eeb2aaea-62e9-429c-9fe4-67adefcb624d","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":75,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"20b81b89-88cc-47d2-97df-c0e42fd8ab35","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":75,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"aa24befd-9070-4f05-a80e-3caf67151ee4","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":75,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"af9bbcee-98e0-4796-b61e-6b379b7a4876","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":75,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"99de9676-adec-41bd-87c0-a0f6710db6d2","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":75,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"b8db51f3-6e67-4777-8882-ce5b505e59b8","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":75,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"a6243a86-19b6-4848-8fde-3b371d23b40f","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":75,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"9c3b1c84-22c3-4d65-893f-dbeff4987f48","block_type":"box","text":"i.e.","page_number":75,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"90ce677b-f2ac-4a5a-8568-466c4661815f","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":75,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"9f6617e2-f7cd-4347-ace5-04c5103b02cb","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":75,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"7dd2a313-508c-4f3a-b80e-4264783303ff","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":75,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"23adbfa1-2f40-4d84-85a1-7f6366df3692","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":75,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"37774a20-dd7b-43f7-bced-bb762f91e0ed","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":75,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"cb33bcec-0330-4e14-9c68-54778378a804","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":75,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"2374f413-4588-434c-abd2-ad899d9ee0c9","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":75,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"ea1c1298-7d22-4095-869c-8b1ed66419cb","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":75,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"8646ebfc-eecf-452c-a967-a702def9bc49","block_type":"box","text":"par ties.","page_number":75,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"96dcef8b-ac9e-4573-9a61-559bbf739a36","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":75,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"a7bce605-1a62-4de9-8573-8d774dfaf5aa","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":75,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"68fd437d-9c6b-411c-bbda-b18a6d96f3d3","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":75,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"e8e1b6ca-febe-4aaa-a550-37b2f44a93e1","block_type":"box","text":"II-45","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82f01de0-4afc-4318-a59e-f64916194db2","block_type":"box","text":"NM1026U-5978647-75/232","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ad2bbc9b-1efd-41e7-b3c8-615c76f41d56","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":76,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"8deccdc9-24eb-4a21-b679-82560f1fa204","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":76,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"3f4b3059-8163-4196-879f-409d927e65dd","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":76,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"5c89364a-150f-4bea-9ee8-3e772533f3cb","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":76,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"e896c8b3-5e8e-428a-ac48-da47e3b809f5","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":76,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"5c5984fe-f42c-4cc8-8abf-253690e22a99","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":76,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"6fb8bae0-b751-4365-9b21-18a57e53f36e","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":76,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"d97115b5-becb-49a1-ae9f-c2f63c659120","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":76,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"548f1bde-d7aa-4d13-81dd-10d9de2a116c","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":76,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"19d2b253-e9a3-491c-9273-636bfb49c96f","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":76,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"c30f6580-9523-4b91-b626-6cb8c3094bff","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":76,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"131f08bc-e3ce-4fbf-a9da-4d2d2c4075b3","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":76,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"72da4829-77bc-4ef6-a4c0-abde9d1610f5","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":76,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"409f6349-b7c7-4f7b-af74-1dd1c3613fe9","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":76,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"2c36fe92-88f9-490e-b009-a9193511c24e","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":76,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"e511b109-b1dd-4350-a7e0-bed2aaa91626","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":76,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"2defad6d-54ca-45bf-adbb-5d5a0a20174f","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":76,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"c09afca1-c183-42f8-8264-658094415442","block_type":"box","text":"per formance.","page_number":76,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"e139ad32-0244-4e93-b434-fa4385888261","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":76,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"66dec018-5a5d-44a9-8cec-a70661410976","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":76,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"ccfbfd55-4bf8-4898-b428-7cf21604f4b0","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":76,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"4b2363d1-706d-4add-a64c-da36c99feb04","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":76,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"c7d86967-ac32-41b1-b9dd-dea76d194751","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":76,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"88b623b3-d044-4cc5-9732-27942f7cba5f","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":76,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"d57c4bbe-25f0-45e7-973b-3f76e03421e9","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":76,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"975eacf2-5b46-43df-bda2-39100defbdf1","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":76,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"628079ab-6786-48e2-90dd-c65ca43599b2","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":76,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"e36fd188-61c5-4a8f-b303-21c4b58a9525","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":76,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"ac379016-634c-4f34-8b18-85d49fb0f36b","block_type":"box","text":".","page_number":76,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"f5f3d44c-c645-4c7c-b1d1-14427a5adde5","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":76,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"13ee7df6-5f20-4073-89c5-5a33856e5a1f","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":76,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"241e14f1-6c09-4a8e-9d89-a626e051299c","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":76,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"8ad02080-1d00-4c6a-9fcb-e88fc11f22b2","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":76,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"360a31d7-2d05-454d-a63a-4ae10b2ee09a","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":76,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"23a55372-9b70-4e85-9664-8e1bfa8f00b3","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":76,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"0c550871-3808-4f8a-b363-3d61746a57a6","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":76,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"034ebe56-63aa-468e-85a4-d7bc3af20630","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":76,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"4ed44744-5fe0-49d6-93ce-939263f4a11b","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":76,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"c7adcb66-0126-4b9f-955c-4cde34aa781a","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":76,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"32ccc0e8-8a17-44fe-a5a5-6c8c8cd2ae1c","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":76,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"90772629-a7e9-4e67-96a0-0003e6968878","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":76,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"873ddf79-fdbf-4734-bf96-a8fa7be68dbf","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":76,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"e99e1f96-8b88-43f4-8801-19596794498c","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":76,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"c59f8695-68d4-4ca6-abf9-5d309e9ba1ee","block_type":"box","text":"without notice.","page_number":76,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"f9c24cca-3084-4cd4-b7e2-7ee430f3f843","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":76,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"fdac063a-6cb7-435b-a46b-75bc58769a9e","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":76,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"1bc4a6e4-9a45-47d6-841e-c4e9afa080e7","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":76,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"cd2b314a-b174-4dba-8487-80cc2c5a208c","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":76,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"8f92dc47-8fe0-46dd-b626-381f970803b5","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":76,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"ac67e50b-2459-44cc-87c7-8cb45f54d1fc","block_type":"box","text":"December 31, 2027.","page_number":76,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"d697775c-0c97-47de-b934-c5ba4a80f910","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":76,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"433ba2a9-b813-4ca8-a79b-877d7e048c71","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":76,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"3b9c033d-d20d-43f4-a2f1-c971b2239d8a","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":76,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"ae91c9d3-5654-44a5-8019-6e725fa1c8ad","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":76,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"23e98141-c537-4979-bbc8-44f15b5d240d","block_type":"box","text":"II-46","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"786ca9c8-c13d-4d5b-84ca-5680b6b848cf","block_type":"box","text":"NM1026U-5978647-76/232","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"670188b3-8b73-4093-a2d7-ccd471a8bf75","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":77,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"59bcf367-f9dc-4b46-bbb8-9a60b3b2deef","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":77,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"c660b8cd-9d26-461c-8ac4-b8e5fa26d4ff","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":77,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"b03f8cc6-0eb7-4373-a268-1deeb76d4d71","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":77,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"6d9562cc-6996-4e1d-ad19-cf31b75866bf","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":77,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"82c66cb6-286e-4add-a8fc-47e954fe9f12","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":77,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"0a1622b1-9205-4c7d-8716-6507ba4db5cf","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":77,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"427660c8-d882-4167-8e73-a62aa0154c32","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":77,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"3dce332b-4cac-4515-ab9b-a2d30cec32ba","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":77,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"6b586bd4-7787-413e-9bee-1ab6cefb06d0","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":77,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"e3a0748a-440d-4772-aeaf-cfafeca356d1","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":77,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"0987992c-0f29-4b1c-bdcb-8508495f9a37","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":77,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"1424cee7-18e4-4d27-ba02-a28ef4f3e626","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":77,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"ccb60fe3-782c-42d9-9c65-54af4b5f2b9e","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":77,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"41a80d10-cc44-4349-8556-4542b9800e20","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":77,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"1ea3bde4-d0d4-46f1-a42c-7e787e0c6b81","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":77,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"a96e8171-12bc-40f2-a6cd-4f8c2c7e4dc0","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":77,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"bad47ea8-0022-4a6a-8317-33be90839ca0","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":77,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"a8d4e136-6883-43c0-83f4-6061e5e64a3c","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":77,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"027df3b1-cfa8-446c-9c97-4a32669b0621","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":77,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"45a71f0c-f1d5-424e-b67e-875a1ccf5f5a","block_type":"box","text":"the PRC in notifications.","page_number":77,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"4f45c6f8-66e3-4944-b36e-3d4cc11f0af0","block_type":"box","text":"Investment in Other Investment Companies.","page_number":77,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"5931d3e8-d0c0-4522-a246-32aad40154ee","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":77,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"7cc09080-3bdc-4edc-9dfc-98e5292e8420","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":77,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"4f009141-e2aa-4087-b303-341810b7cf6a","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":77,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"c25119da-0bc6-452b-bade-86175d8edeb2","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":77,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"2bc46149-d6b8-4b18-abd8-45684dbb0f01","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":77,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"da7399fa-ed2f-41c7-be97-6bad9c24302c","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":77,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"8917f468-d516-4ff4-a044-d3ab78bba328","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":77,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"18cd685b-682c-4501-a9e9-a1529419fda0","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":77,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"f13c66eb-c84d-4b8c-9b28-c663cc6e6da4","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":77,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"1f2d249a-c2ef-4f60-a2d8-99471659a413","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":77,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"3b51bf44-2881-4cd9-a7d8-b55152068336","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":77,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"4b9a3101-a868-4617-9977-0629bbf4dc8b","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":77,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"e3bfdc7f-9f71-4f2a-87fa-519cac28f0f9","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":77,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"65d19f88-6543-4daf-a819-676185257888","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":77,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"86087ed8-6d08-4989-954e-03d4655f1d32","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":77,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"764529ac-73cb-47f7-a4d3-a9d8e4d8a35f","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":77,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"6e4a229f-35ea-4d9c-a8f6-5bfbb759e5b6","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":77,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"8f0c547c-af99-4a63-85c7-0b169e3189b4","block_type":"box","text":"subject to cer tain conditions.","page_number":77,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"fb06b6b7-30f1-4a00-bce7-74fa6da58aac","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":77,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"a408048d-d610-48ad-9d94-dd934fa0ed0e","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":77,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"219cf8a4-1696-469f-9d9f-c36e0cb4030f","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":77,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"73342ab0-0a9e-48f3-beb8-0fab2e9722d1","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":77,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"a855acab-0344-4877-ac11-d4703dd12799","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":77,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"d8723350-8dd7-4360-95d1-11c958de49c9","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":77,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"c40a1d2d-823e-4b9f-8d70-4115dfec42f1","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":77,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"1bc19316-72ee-41a0-b41e-8ec0c9e4523f","block_type":"box","text":"loss.","page_number":77,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"20919910-e4b4-4cb7-bf10-e195a6b3e60b","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":77,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"968c662d-6f66-418e-a1fc-613760546cfe","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":77,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"fcdf4be3-d165-4beb-8e06-db211aefedee","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":77,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"75076682-58bb-4f2a-8b47-ac6d7e067430","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":77,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"c23cd6a8-ec51-42d5-8592-d448b489ce32","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":77,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"de4cc620-aa93-4b83-8df2-313f4d13f06f","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":77,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"c1f9e7d4-2f71-421a-bc8a-de89cda25c0f","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":77,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"1953d17b-4293-4193-b173-f1a27daa57ee","block_type":"box","text":"II-47","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14a49a95-4604-43a9-aeac-8f2c5b218eff","block_type":"box","text":"NM1026U-5978647-77/232","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3ce8716d-048f-4c73-86a6-0a2ff0291d2f","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":78,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"c47834cf-99d0-4bd9-98cf-d0d51868f2e9","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":78,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"0962f863-f834-48f6-be3e-950511a06a71","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":78,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"2791766a-4723-4385-b8e8-5a4de05629a1","block_type":"box","text":"assets.","page_number":78,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"91092014-2b4d-4b35-bdb1-edd3a6e11dc7","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":78,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"e6033e7c-1cc9-4868-b7f2-84ad81480ade","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":78,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"ed76568a-f5c7-46ca-b987-536441ca792e","block_type":"box","text":"e.g.","page_number":78,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"5f1e2c8e-e299-4141-98f0-3df2b13e634d","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":78,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"a2e0833b-3e55-485d-bbef-42cbca81dae1","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":78,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"656e0328-fb39-4289-ad73-d244ea0369b2","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":78,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"86951ad2-6f7a-40a1-9f5c-e51cbe22e5e4","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":78,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"6652b343-9a0c-4647-b7c5-aa0c74faa150","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":78,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"1189179d-2617-4411-8fee-cda198a52626","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":78,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"aba9fbcd-513a-4b30-a9f3-aca232d76280","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":78,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"c12b9b98-8d0d-49c9-b98b-7c81976080cc","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":78,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"fe4f8e72-65dc-4a1e-a643-3a3ab79b34e5","block_type":"box","text":"countries.","page_number":78,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"6ff7e6f1-a774-4322-973b-1887e152c30b","block_type":"box","text":"Issuer Insolvency Risk.","page_number":78,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"b6500505-5ad6-46cd-bf1e-97d081729af5","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":78,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"ebd34967-0715-4a63-a6e6-f972a3f4f241","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":78,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"2d597349-0b6c-4075-859f-2047450f399c","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":78,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"0fab8bae-c3de-482f-8ad9-9dc62c8c44a1","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":78,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"63cf365a-a588-4b3f-9e2f-bf8474f8f2cb","block_type":"box","text":"issuer uncer tain.","page_number":78,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"6c7c7ca8-89b2-469a-a4e7-84fcce241241","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":78,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"64393f24-d8aa-459a-b1c4-14d46465385c","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":78,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"7be88d50-0314-4fdd-b3e3-8605dfd2e361","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":78,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"39d386dd-0abb-4d50-b0bc-51a3986c6d7e","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":78,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"bf73e64f-5d3f-4a62-b26d-4322768d93ac","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":78,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"71b250ad-8761-4b20-a1e1-b43cb8a577e0","block_type":"box","text":"eventually be satisfied.","page_number":78,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"11d9212b-e21c-40a5-b51f-c31a770f03f8","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":78,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"c3525515-f364-4912-ad60-6bad9cb37cd4","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":78,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"09a513ea-ea60-469c-8e38-8d1b63de5e69","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":78,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"f3317914-b769-4c5c-84ce-1edd680b8f7c","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":78,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"27d0a6be-362d-4c0f-9c40-6af873ba7e78","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":78,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"e889e2db-aa10-42f9-b7d2-ad262395778e","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":78,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"8a3fbd1c-f8d6-466c-8908-31e1f3dae8c4","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":78,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"af9389f1-00f1-440f-95fc-1ee35a1458b4","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":78,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"bfaa0cf9-e23d-483e-9bf4-0238cf6c9381","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":78,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"0f642fc0-7833-4bc9-bb52-2054e6f02208","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":78,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"fcd0ddcf-103d-4f9a-8e84-9f39dad4138b","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":78,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"b8435518-20b0-4930-9684-bede98e6d4b6","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":78,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"08a2b7ca-9655-468b-8dd1-8e6dd22969a2","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":78,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"bff51ce7-dc38-4e12-9c5a-40bf58c861ec","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":78,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"bc9acc8d-cceb-465a-879f-66903296646f","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":78,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"5ba5273f-8c7d-49e8-be7d-02bdb2f72b42","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":78,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"f594ab36-8cab-4cad-9bea-2258555b5579","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":78,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"dd31f051-6dd9-4652-b876-f74afc343ccb","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":78,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"f3f5c085-7f76-4af8-8288-8b72357977ec","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":78,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"435cd511-2173-4673-b983-58751bb8acdf","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":78,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"cb6eff92-43db-41be-9adb-7fe6084199f6","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":78,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"56bbc8a7-c5ef-4474-997e-cc25553ac13e","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":78,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"6d26df91-07b6-42c9-a2d6-07ba45adb66e","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":78,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"4c1a662e-407c-4395-ac5f-d316b67c831e","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":78,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"3a2c5e0b-6700-4c33-9f45-0dae4b879675","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":78,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"72164c5a-eb65-4f5f-b137-36338bf75899","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":78,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"aa29592e-0d2a-4512-8c8a-fe272850827f","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":78,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"f46e76dd-6444-4778-bf3f-753b16edd747","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":78,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"17c2c57a-1c5d-4994-8eee-6f3346b10d45","block_type":"box","text":"that assumed generally by an investor.","page_number":78,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"d48ea95e-b03d-4ee0-b83b-3e53dd91a6bd","block_type":"box","text":"II-48","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c294e403-e8fe-4528-bed4-75e6063b2eff","block_type":"box","text":"NM1026U-5978647-78/232","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"970c99c9-16f5-4cd1-8cfc-e17d4124a5b1","block_type":"box","text":"Lease Obligations.","page_number":79,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"37897499-e92e-4aed-941a-4ffaa8137161","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":79,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"2666b726-1bc9-48c1-ab74-60f9d4dcf9e9","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":79,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"5abd5534-0244-45a3-8ac4-ef8d96a9d6b2","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":79,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"f7189db6-31bc-4375-8905-f4d9b4345e92","block_type":"box","text":"Life Settlement Investments.","page_number":79,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"1445268a-021f-41bb-adba-fcc2f91a559e","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":79,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"f3fbd1db-ffcd-4320-9ac6-abec7aa17dc5","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":79,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"bade5d27-9b2d-48fb-9b18-d8ce8e1288e8","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":79,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"f76951b7-32e5-4354-bc9c-c090fb875843","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":79,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"fe9eda78-acc4-4d66-ac61-2e94c2b37bc5","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":79,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"c138afa8-855d-4346-a440-65afcfe073b0","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":79,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"b3da3973-9be3-4c91-9534-f7f24a8a6309","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":79,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"ec7e53c3-e29e-4cd6-bc6e-0e9d516ba949","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":79,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"f3cf002a-34f3-4227-8ec3-fa2b91ad5996","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":79,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"db122bce-de97-4fdb-8433-1f6ac2828588","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":79,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"f80395e5-c71f-4e52-b0ca-2faa50f4527d","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":79,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"2676ec35-49ce-4219-ad8a-975e7423eb8d","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":79,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"84380723-8929-4c05-b7ae-762243c3bd44","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":79,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"6ee788a6-ed38-46d0-83a4-7875359b10b2","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":79,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"33c3cb6d-40e1-4e9b-918e-7c6413f68ac7","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":79,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"224f6785-7891-4294-bcbe-f0e721fb67fd","block_type":"box","text":"Liquidity Risk Management.","page_number":79,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"ceb8adb2-a149-4dfc-bc80-ae65a9935c1a","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":79,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"5f0c0ae8-a8f3-4d41-bea6-838de0d2d973","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":79,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"c1da79f0-ca11-4cbb-b656-9ba8c0ea6a38","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":79,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"81f4969d-7a47-4f70-8392-a0a00a6a080e","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":79,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"d33fc623-fd49-40b4-9bb4-f76801e8073e","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":79,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"650ae01c-cdf4-4d91-9446-857bacb88d81","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":79,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"29a26b1a-7b2e-4de4-903c-b5eca8996789","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":79,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"64b89f2e-0de5-47d5-8afe-dd67919de12d","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":79,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"5847a8ad-5b88-4d8d-9106-b3b8e33e2d9e","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":79,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"f913a30f-2445-4cc3-a108-e20444b17fb0","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":79,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"912ac520-a069-4daf-b111-a4fc0a803df1","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":79,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"66e82577-0530-4a42-8359-f5b985faa203","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":79,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"bc9e54eb-8065-4709-acfe-8d5b5d71b148","block_type":"box","text":"Master Limited Partnerships.","page_number":79,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"cac0da08-1e5a-4b0d-aee0-9381e89b380c","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":79,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"5d87eb5e-949f-4f47-9da8-03a7a23f374b","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":79,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"c0f36ef4-e7d7-41bb-9ae8-455fc86e52f0","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":79,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"a5773d33-ca8a-424b-bff1-36bc88b38bd4","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":79,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"299b7613-cea8-4afb-a872-1688bd8b8b96","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":79,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"69bc8fe2-552d-4309-acd5-a12c9202d30a","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":79,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"a8afe6ca-4eac-481f-8eb0-682d1216f2d0","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":79,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"6770a4ae-1743-47cd-8ba3-71ed2f1d30f6","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":79,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"3106ba7f-45f0-49d7-8a14-148d3a7d31bb","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":79,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"6eb9f5d3-3469-40b9-89b7-159a2fa0c2f5","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":79,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"5b934b0b-d392-4921-8bb3-6c9d58bcff78","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":79,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"7eea40b8-4037-4166-9811-80ad3555d664","block_type":"box","text":"in the par tnership’s operations and management.","page_number":79,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"0bb6f26f-66c7-492f-b765-6f7a6d9003e0","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":79,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"82576406-41da-46c5-8151-89469c9c5f51","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":79,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"a3dc282a-158c-41c7-bd2b-47b29d27b9eb","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":79,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"d3917b0a-980c-4b36-8274-e6be83945539","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":79,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"9d5ef56d-999a-4edf-ab4f-f5a638f7403b","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":79,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"1517e9f1-317e-4e98-a025-da70eae6c5c8","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":79,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"d6b97b58-e134-4ca3-9c9c-d977f45d62be","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":79,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"c8f3f879-286e-44b1-9052-1ea55cc3edd1","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":79,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"fbe70323-1a7e-4e9c-894e-2c9bf836688d","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":79,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"eb0e68db-234a-4c23-afcf-e26164f75a64","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":79,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"de4ec18d-2bdc-4bd5-a2c7-bb51cbb70d49","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":79,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"4013dd07-c81a-47d9-8998-973a9d839cb9","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":79,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"829dad21-d6bf-48a3-a081-c1181789e85c","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":79,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"90dc803f-c208-49f7-8cb2-3d1e03a3ff0d","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":79,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"75e4b327-d549-462b-8162-710d3dc82369","block_type":"box","text":"II-49","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"23378821-dd38-44c9-9db5-af6ef915700a","block_type":"box","text":"NM1026U-5978647-79/232","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2905bda1-7652-463d-a9c0-0aa8325e8cbc","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":80,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"0c3f111e-dd7f-4d92-b227-4bee82014ed0","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":80,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"069cabe3-391b-4d3f-b521-106667a07e51","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":80,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"3ab51e67-f899-4924-a787-366dfd812df2","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":80,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"3d6a21f2-ce2d-46ef-9165-02ac6454d2b2","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":80,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"0953827d-fd17-47b7-8854-cf8447247052","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":80,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"1d6e7a92-4dd5-4121-9f80-3936fa9207fc","block_type":"box","text":"Merger Transaction Risk.","page_number":80,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"01a8a495-1232-4c1a-b9ef-133275957c81","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":80,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"eb734206-c7a8-4e0a-9815-4925217cca7a","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":80,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"40701199-2c00-4449-b60d-3364ad75c77a","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":80,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"4543b46f-d48b-497f-ba59-8c9c4e271ffc","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":80,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"17623e8b-c409-4cb5-b306-ffdb2a4a526f","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":80,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"5444ea1e-2ee8-4852-be01-5a784ee7c110","block_type":"box","text":"the Fund and may lose significant value.","page_number":80,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"2763bba0-d2e8-4652-87e9-43b3cc0ec660","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":80,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"8dbe6e66-0d0d-4104-a2a4-c13dbda9daa2","block_type":"box","text":"Cer tain","page_number":80,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"ee827eb3-2900-4500-a6b4-f3469d70dffd","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":80,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"f9a4575f-bd47-4706-8400-cfc621fda7f5","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":80,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"1b91416e-e831-476c-a7f8-d9007914f4e5","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":80,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"033994bd-f0f8-4f73-8374-dfda44d36dd8","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":80,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"e3f9c036-925e-4ef5-909d-94c521ec0837","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":80,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"ea2cc7cf-10ce-4d45-b0ca-5b9b260e798b","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":80,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"94cc4569-5e7f-4c9f-9b51-121505f2d874","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":80,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"9b9977b9-4d51-4272-8d06-1d41579d069f","block_type":"box","text":"branches of domestic banks.","page_number":80,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"d3af8ce6-b14f-4e5d-9367-1cad2478262b","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":80,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"6fe0d2a5-baae-47a8-af92-c5c458ba5365","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":80,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"598fc4d0-b9b4-4c6f-b3b5-b663946007b9","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":80,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"093fb595-d9a8-4d4c-9f62-c29447f213a7","block_type":"box","text":"paper of a foreign issuer.","page_number":80,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"7c3352b0-a194-4e41-b9dc-ab2b7c2b906b","block_type":"box","text":"Money Market Securities.","page_number":80,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"ed26d641-d12e-4f1f-8a8a-eb81f89d911b","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":80,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"c9ac92f9-da86-47d1-840c-6a0c53a38911","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":80,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"e319030a-2520-4088-89db-e5f157111573","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":80,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"e8ef03e0-cbbb-420a-a67e-95a068f4e9cb","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":80,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"021b0e9d-ea7b-42cb-8267-66a51fc18870","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":80,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"5026866c-d433-40b3-8f42-65ae72439ad2","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":80,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"3673222b-02d6-4c95-bd22-d3f7473e8bd5","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":80,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"406841d1-82cf-4aba-a307-3467313c56f9","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":80,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"3f9da4b6-9e39-4d00-9987-e427e6eb3275","block_type":"box","text":"agencies;","page_number":80,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"8970e8a1-703b-4709-a35f-9edaf8039f25","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":80,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"8e0543cc-d481-44f0-a00d-bc12a1278972","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":80,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"dead4a70-92a8-42a6-a888-8291279bed51","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":80,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"61550b76-645b-41bf-838c-127bb6784ee7","block_type":"box","text":"obligations and credit card receivables);","page_number":80,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"ae563f0d-81f8-468f-95f4-17c684fec1ba","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":80,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"a3e3279d-1dc6-4877-afd1-44a2f9575832","block_type":"box","text":"authorities and related custodial receipts;","page_number":80,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"a043c8f8-4997-4a65-a3ff-a170a9750942","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":80,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"3cbd1c01-eea1-4f4a-8da8-2225b8ae0878","block_type":"box","text":"agencies or authorities;","page_number":80,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"4f042450-8055-4218-9a2c-4c39da8db56e","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":80,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"91a42700-13d0-45cd-b978-e342bef373e5","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":80,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"82dba655-9ac3-498e-b7cf-e5085e5c447f","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":80,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"b2bb8d84-7a6f-486b-baa7-d681dcc3f385","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":80,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"e6fd96a0-acfe-4fce-92e4-c5a9381950a9","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":80,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"6dc7a500-9d3c-4031-a823-396e3d8272b0","block_type":"box","text":"States;","page_number":80,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"e5cb1f03-f471-4113-ae00-86ab9a464eb1","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":80,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"cba42926-c63e-4614-840f-fc7d58496da5","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":80,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"03d827b4-cbf5-4245-af59-3c4a9b0f0321","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":80,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"b6c5a184-e688-4d2a-9666-90f273ff2231","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":80,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"87ca01f8-3d4a-43b1-856d-72ad4896ff56","block_type":"box","text":"II-50","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"067e5c80-9e77-4aea-b759-05ee789088c8","block_type":"box","text":"NM1026U-5978647-80/232","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"62df6658-7b48-45ea-9c6d-9a24f66396c0","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":81,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"977bf00c-fbd1-4969-b434-0d02470e655f","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":81,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"47e4d55b-306c-4bdd-9ec6-db179d0828f4","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":81,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"21cbd2fb-198a-4ddb-a6f6-7118ea697319","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":81,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"b7dab695-e3ed-49fb-8538-e2ce36587f2b","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":81,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"6f361e7a-5425-4126-aad9-0ce0ac4d28cd","block_type":"box","text":"States.","page_number":81,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"4e2d7a44-aaca-43ca-8230-03ac3dd55b27","block_type":"box","text":"Mortgage-Related Securities.","page_number":81,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"d44a0263-1a61-4910-ba34-7df24ea140f8","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":81,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"9b33af16-2754-4419-9e39-d52ee304c2ff","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":81,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"03174e0d-ba26-4634-8748-9a60cd4eba87","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":81,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"00c3d006-f90a-4caa-b761-8ddb407b8cda","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":81,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"4c1cd503-da9e-4f20-b5ff-6f7b5955cdc0","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":81,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"d5027208-c992-4231-9556-ed6e5283601f","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":81,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"9f801b45-f939-4ec4-a783-75f4a980150a","block_type":"box","text":"maturity or specified call dates.","page_number":81,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"bce616f8-4f58-43e8-a36b-ef7725bdd3d9","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":81,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"48da2bca-a698-4cb1-aab0-8c65385a51cb","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":81,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"ee2622f2-0990-404e-8e05-2befb4f817a2","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":81,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"d08345c4-42f3-4355-ae42-b191cc0bdbc3","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":81,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"65d1f06b-cb6a-4e8e-a1ff-224525317682","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":81,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"175f58ac-b05c-4c6a-8514-ccef8287c6b8","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":81,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"26abc6b9-221f-4cd7-b6c0-8f9ceedd4679","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":81,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"3b28f2f6-7b1b-4867-815f-a5ff7eee447b","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":81,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"fd5e7304-e534-469c-90cb-a23744de6bbf","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":81,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"adc7b1d7-be87-446b-97e5-21872844cd61","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":81,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"9831515b-295b-4b16-b187-375bfc82653e","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":81,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"79d7ba83-cee8-4d0f-9877-1f7964b76704","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":81,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"ec06e24f-3c97-4518-b35f-99d592c6a4d6","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":81,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"57653d60-3298-458a-9e15-0ec354f80bdc","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":81,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"1823e9f7-a640-4634-a9b8-5b4eff39c98e","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":81,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"1f27d054-6d18-47de-8910-8d6f32252e9d","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":81,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"891fade0-478e-4c05-b890-5970e1535eba","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":81,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"5988167a-e83b-4bac-8ce9-547d516b523d","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":81,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"b477c25d-ea78-4eba-b105-d29c7f38a892","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":81,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"b5964ce0-f9ec-4c3f-9855-34d018d07fc6","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":81,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"a9dfa2c7-caed-4bf4-8b5b-b3f3f1f91e3e","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":81,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"4cc53cbb-f2cb-4a2c-aba6-2d938398e7d3","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":81,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"33aea712-6bcb-49dc-8d8d-017f42e3a1af","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":81,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"2d1834e8-9f54-452c-9859-e77f9d39e691","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":81,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"32fd9d8c-4b5c-447b-9523-f8d2478bc8b6","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":81,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"7a9488c8-9091-487d-b5ed-149df4586b67","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":81,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"c233153b-cd7f-491c-98a5-bb8a60355587","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":81,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"adf001cd-9226-4d57-b795-cf8e18858c4c","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":81,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"c87d2b03-8e36-44a2-b67a-678aeae15113","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":81,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"e33b1c15-cd33-4bd9-997c-e68b7b2d175e","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":81,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"6b31c23e-f54b-44cb-a892-de120f8e0941","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":81,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"969d8707-7b69-408d-be25-9505fe64c89f","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":81,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"0db8ba59-db67-4308-85fd-ec57d85e3571","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":81,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"9294c4b5-4fc3-4fa9-a95d-863d4efe885e","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":81,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"5285c47b-7167-456a-acb7-efcc80094c28","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":81,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"62da0397-47c4-4319-bd07-d109607d3f7f","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":81,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"f7b42734-3273-4c42-8570-a7cd43e61aac","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":81,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"84a04a90-84a3-4939-a569-216430e37e29","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":81,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"c6622007-5715-4ec1-b912-450019cae913","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":81,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"89c60741-ae23-45c0-b607-71d2a8abee41","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":81,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"a777ff85-4b1d-4f9e-8140-8393afbaf301","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":81,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"ef2966c2-101e-4ef4-9a15-920600741e15","block_type":"box","text":"II-51","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"60d9630a-56a0-4b22-b6be-956731976b82","block_type":"box","text":"NM1026U-5978647-81/232","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e87f925c-9a65-4330-9a3c-3a8da13a41ab","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":82,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"31bd3964-7e29-4331-a469-b48a74d29760","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":82,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"f9861804-bdf7-4613-8ec0-4453f3a691a1","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":82,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"01af155a-54c4-439e-8a05-dff23c76f7ec","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":82,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"2ac65efc-ac21-4767-b825-f66e198bf178","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":82,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"91c72195-2246-4c5b-9248-d49294cad73e","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":82,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"3b1e3dd7-5e9c-48f1-ad08-b2ec09646f6d","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":82,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"d0faed68-7674-44b7-9626-7e8b79e12eda","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":82,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"f73af6af-d382-4a5e-838e-91fc7fbacf23","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":82,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"1d7a4fa4-7f87-41e0-868f-2e5280662206","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":82,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"654db7c6-62d5-451e-b640-599dd1686811","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":82,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"16e19ddb-6391-4b4c-a40c-aaa673fd82cd","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":82,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"b0066c79-2749-4c1b-b9f5-538dc36bc0a0","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":82,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"9353ebd9-f329-4dd6-83ac-587939fbbda8","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":82,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"0895df0d-d832-4731-9052-06aac10f6728","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":82,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"0d7232f9-01b4-4f9a-b9cf-ac6d7b726556","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":82,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"4b5eae1b-d008-4b98-b380-5b8d90a0e2ad","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":82,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"079e408c-061f-4f08-8b19-48e6581182b0","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":82,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"942175a0-30c1-42bc-b64c-f8ea0bd3f34b","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":82,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"d6472202-0dd7-487a-91a1-fb425960b15c","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":82,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"881270aa-3327-468c-a970-405f6bb613ea","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":82,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"bebee076-974f-49dd-9478-692844058f7c","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":82,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"1e404880-2445-4b0a-906b-d477fa6e75e3","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":82,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"9fa96e5a-faee-4428-9b15-06d5b13925d1","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":82,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"122ce545-050d-455a-917f-60d14cede0cd","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":82,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"a09ce0af-7d01-4b6a-816c-a0845e33fbf1","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":82,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"c8ae4a2d-a51d-4de4-9397-4b7812555cf9","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":82,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"cb0cd7ed-9735-40d6-ad64-85d0d0f4a1f8","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":82,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"41ebce69-0f9f-4810-a610-67f36e1c05c9","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":82,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"4c41e08e-bf2d-4369-9ae1-7dc8ae571838","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":82,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"c73a05fa-4ac9-4115-8a9e-cd8d7435a102","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":82,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"f3c081d3-e44b-4d4b-963f-b4713df0f912","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":82,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"10ce213b-258f-4c28-ad3c-dff1984e81b9","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":82,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"61813ecd-3953-490f-beff-d3e4b14d5980","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":82,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"8711e136-f130-4d1e-8de1-b59a5f690773","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":82,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"9aef5f1d-8991-468e-aa3d-4ea51a651d86","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":82,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"347196ea-49ed-41b9-8189-9ca5444f2512","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":82,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"5103cdba-c882-4f65-a5c1-c2deb5edd39d","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":82,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"c9a2027e-e6c8-41b8-8a27-5c669fe6c423","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":82,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"507a0edf-a232-4ecb-b3b9-b67ea4e5fd9d","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":82,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"f495b6b5-45cf-497a-bf50-26690e94e1cc","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":82,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"67349696-3185-418d-9969-361bf34d34cb","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":82,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"3458f2da-01a3-4ec6-ac10-173c039f9608","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":82,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"01c1c74b-9a22-4710-96a1-bb6a03aa7575","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":82,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"575eb926-1ae9-4bc3-8129-ddfc2facf570","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":82,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"9e223603-c9d8-4589-9efa-d4bd48cff4c2","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":82,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"eab6b205-a43b-4487-b7fe-bdbd89149e05","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":82,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"4fd4ff52-05f1-4591-9f21-b04fa469ddc9","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":82,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"3bbb9088-3d28-4fb2-83f6-10cf736e8cf0","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":82,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"1f8a228b-f6d5-417e-a8af-d13f213015eb","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":82,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"12738c9c-cac5-4595-862d-1c5451697682","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":82,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"b5230c3c-4e0c-48d9-928f-b0bb8af302e7","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":82,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"89b502d5-398a-42f6-903d-37ce5fea2d8d","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":82,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"e540ad8c-5526-4070-bd66-b5be13ced2c3","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":82,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"a971d9e2-8882-4c25-8c84-35e4d8b585fd","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":82,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"06548815-8ef2-46bf-8e53-4f142c341994","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":82,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"5ae20118-1335-4762-a2b3-35c581348406","block_type":"box","text":"II-52","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8b5ce6f1-3604-49ff-b8a1-e3834dd82e7c","block_type":"box","text":"NM1026U-5978647-82/232","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c278baa1-1406-44b7-afac-e94348ffd24d","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":83,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"b606f47f-433a-4421-9671-b41f4a0b9534","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":83,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"a8f049e6-b317-44f0-bf18-9f3d514fd926","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":83,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"e382811a-e06c-4426-bc06-c2a46563242c","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":83,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"d3cb4284-f70e-4899-95b9-d30cc991f3b8","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":83,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"68b78964-83e2-47e7-abac-5e7338a596e8","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":83,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"be4f833d-9677-4c24-b1e6-9786c1d3c4b3","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":83,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"11aa33ce-9db5-4aca-9c1d-1569dcf3f10f","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":83,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"12d9e173-4d37-4bb1-b73f-f7d987163046","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":83,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"2440c3d8-a993-4675-9ea3-24274240dd1b","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":83,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"6701fc7b-c838-4b0f-b6d2-ce24d6c443f7","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":83,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"bdaf12a0-09e8-463e-a07d-ef080d770ada","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":83,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"d645abbe-2007-466c-8cf5-90ade63b26e6","block_type":"box","text":"of principal because of the sequential payments.","page_number":83,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"46a642bd-8c82-4b5e-b533-25ec0829fa8b","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":83,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"b8b39568-9cbb-4fb3-9cbd-db25c85e5664","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":83,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"341395fd-eb03-4d23-9c9c-8c642ad98a79","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":83,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"20363a5c-4f44-481e-816c-2b3ba6ab193f","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":83,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"835703b4-9a85-4c25-a0ab-af2d4e1516bb","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":83,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"659d8b1d-234b-4216-8761-ea9a5bd0e3d9","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":83,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"732fdfdf-e40d-4643-9e39-a935198b567a","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":83,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"b2bdde8a-ea04-4c85-87c1-031b6f98f6d2","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":83,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"01859ad9-eed1-4f85-b5f8-7bda7f91210a","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":83,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"adfbef3a-a6d7-48d5-8906-b2a8f121490e","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":83,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"33a0457a-86b8-40b6-8f66-8e8b2ea21e31","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":83,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"b0531628-6021-4bf8-8370-cf69fad59b15","block_type":"box","text":"securities of any single such entity.","page_number":83,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"51aaa0c6-c2ec-412c-a989-40971b43e79c","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":83,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"254dfc9d-ace1-4fd4-9a30-6aff6ed4af14","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":83,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"3e11b0ea-9a84-4a91-b0f2-a9b81e78d47d","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":83,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"42c6f7e2-5b5b-4d96-ab0a-4f16a82b686f","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":83,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"4f358f51-1eb6-4d6a-a5e0-1917fe70b12f","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":83,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"49342bfa-e850-4ce0-8b98-62fcc62d5fe2","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":83,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"6cf31f10-a67f-4696-80bf-37e5cf118a35","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":83,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"198aa573-8538-4b60-8fe1-48daa63a07d4","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":83,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"00df7fdb-0fa0-4c68-b109-a0a698db40ae","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":83,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"857ebb49-f853-4673-9396-e8849f89fae6","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":83,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"9e371618-ced8-40e8-818e-e9c6e4a3e095","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":83,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"95919e37-ff57-4143-8a59-1cedca4fa788","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":83,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"438c5570-3290-418c-b78c-2aa1ae4fecb0","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":83,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"bc6efa80-4231-4447-a46a-c17129c5c686","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":83,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"414af064-3697-496b-9fcd-fd9d756231c1","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":83,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"399af543-06eb-4c95-8ca1-a084132b4b36","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":83,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"ca279e91-b68c-4573-a3e4-7dfaab00a3f4","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":83,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"2acbcee3-df08-4743-b344-afdd4eade136","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":83,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"18d1f2c0-4611-44b4-bf66-f1e1eb4ab030","block_type":"box","text":"classes.","page_number":83,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"10c99a37-5daf-4784-8f11-42749c8d4678","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":83,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"54180efb-7822-4cfb-ac98-b893b0130bfc","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":83,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"3efdd799-54e3-42bd-980a-6329dc97f6cb","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":83,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"e8eb0b6e-35a1-46a8-bb5f-ec5a9b31eae8","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":83,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"704e5973-aa4a-4c8c-867d-46b8b1d62bae","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":83,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"85dc550b-432b-48af-98cd-8ab35b40cfed","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":83,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"e4578b41-b423-4202-8f1d-5b57fbbe24f9","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":83,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"bb7532f0-5cb1-4315-b4b9-e7f251863b3e","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":83,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"9872f44e-c93a-474a-993a-c5b3bae06d74","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":83,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"6bbf35c9-2771-4161-a166-ba3222ff212b","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":83,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"545a6449-4e03-4941-a8ec-71eb8cfcca0f","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":83,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"232b6af7-bdd3-4458-b1e1-e571c9698137","block_type":"box","text":"to a designated benchmark index.","page_number":83,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"e1b41a23-3a88-49f2-9d44-94ad72870d92","block_type":"box","text":"II-53","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c54c5c7-64e4-44f4-9b96-3781f03c6a67","block_type":"box","text":"NM1026U-5978647-83/232","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b4cba97a-c06a-4466-8ba6-358aca0dcc2b","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":84,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"cfb51d05-a8e0-4246-8e9b-9717d4316d01","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":84,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"5b8e153d-1d29-420b-b3ba-027ef00bbc46","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":84,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"242249ea-29d7-4336-962f-a01a351895dd","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":84,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"65fc998a-153e-4ad0-bd5f-aa79a4783547","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":84,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"a6655cdb-3bd6-4bf2-91d2-dcb9d3bf6e3a","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":84,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"15707e7e-e9a8-42f3-bc48-c6d6baa7c63f","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":84,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"55d445ef-2e27-4c18-b8de-996b158be97c","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":84,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"91c8ac7d-b1ca-456f-9f9f-cc77648d60d4","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":84,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"612d79da-63d5-40c9-ba9f-dfb439b32f57","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":84,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"7272cec3-233e-4192-8ea4-05b9b7af5d57","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":84,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"85be99d7-d037-4e3e-84a7-d81acd4984f6","block_type":"box","text":"CMO Residuals.","page_number":84,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"3fb55530-3260-4f78-84fe-8a4f81cf108b","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":84,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"161c8ab6-27a3-4ad2-ad54-b3e4d6c3aa51","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":84,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"aaa84766-1e49-4cf1-a8d5-c664f8a8bc94","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":84,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"3b57df58-27e3-48b6-87d7-a3bce04e19b3","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":84,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"60a4f7c4-60df-4ad8-aa7f-34feb38cdb0d","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":84,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"72575c16-77cf-41e0-baf7-88e21193a716","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":84,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"5461cb41-9f4a-411a-b156-a23ce03a2be4","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":84,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"b2514b74-d51e-41d5-a06c-0586dfd83119","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":84,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"3543647d-004e-41c8-a831-0463c214344c","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":84,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"51779218-e1d1-4b23-8991-3b1cbcf8124e","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":84,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"6affbd7d-26e0-4d01-9d73-c76357a6ca2a","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":84,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"3407b699-207e-4dda-8f0d-9034c3e1d808","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":84,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"e6ce08ad-5cf3-4e95-9b91-9a2dcaf0090e","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":84,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"fe5db9f4-b9b5-48d2-bff9-3ca5551f9d60","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":84,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"3108a37c-8c43-4e5c-b331-8bac9ba29bed","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":84,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"622b6b3d-7fec-4b68-8322-a130ba220a0b","block_type":"box","text":"a CMO residual.","page_number":84,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"501638dd-bc60-4e2a-ad7b-16325dc498d5","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":84,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"073ad2ff-d091-42c2-b6cd-85a21c23d5d1","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":84,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"f4c32a6a-1c12-421b-a48f-b8f07cca6a6b","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":84,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"095176be-5244-4381-9d69-47c8d27e90ec","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":84,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"067be719-3018-4709-ba39-13beed7e4a1b","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":84,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"714cdc18-690c-4fc8-b966-d52b90c03442","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":84,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"31ef954a-bd74-4b5a-b172-3a47d9b64470","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":84,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"0c4292c3-f546-477a-a153-3e3d1339a8e1","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":84,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"77706a7a-8720-4b14-8eeb-b894e449c90f","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":84,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"d8738c26-0c21-4166-8f23-b2c89fe44331","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":84,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"2fe4b49a-3fd9-4e43-8139-0c4653a248c6","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":84,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"dd7f3aab-1b9a-48e9-a9ff-e4c155e85f21","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":84,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"9e7baa28-d429-4591-85cc-9f583c83de27","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":84,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"44f9766a-441c-4121-8d0c-a76359d8007a","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":84,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"28f71654-2b66-4214-88a4-7a2ef3d311d1","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":84,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"2e767c79-ba9a-4e6e-b97a-39f5ac8fdeae","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":84,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"fe74f6c6-6732-4212-801a-0e386b6e0640","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":84,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"e677d559-ee81-41fd-a649-fb45b5576d3d","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":84,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"827bcec8-551b-4fd9-b59f-2180b1fa7ea8","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":84,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"c8455e96-37f5-4dea-937f-e5c3e4712e00","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":84,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"b5f7e2d2-e676-4004-85b7-3ea649ee5da1","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":84,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"88bb5726-b692-4da2-a9c9-013cc3b43a18","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":84,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"df99a669-908a-4c88-b3ec-d73b92c6eb69","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":84,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"eb70eabc-c0bc-4f34-b245-46761ebbfb8e","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":84,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"b62803ce-abaf-47c7-9f78-9557c1b26b6b","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":84,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"d2fd34e2-0814-4103-9f92-b95951a82a26","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":84,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"4f7f9ecd-27ff-4772-8b69-4581a778d54f","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":84,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"ac7f86c3-2fa9-4e36-b57e-adff0dd8046e","block_type":"box","text":"Tiered Index Bonds.","page_number":84,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"6c3aea23-de10-4571-83be-9eddc2a39bff","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":84,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"94cf7156-c79c-43ad-afc3-96138c79a5c7","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":84,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"f732e467-25ee-44ba-9cc8-9dbfd8b45a26","block_type":"box","text":"II-54","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bd6714c-34c9-4a52-ace7-049777f7508a","block_type":"box","text":"NM1026U-5978647-84/232","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fec3fa9e-0fa0-45bb-963e-5fb479719401","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":85,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"d6cb2ef6-efb7-4c01-aa25-97bd350fb273","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":85,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"290d7e61-4563-4a7c-a1e4-8f9b10f9634f","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":85,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"ebde37f3-244a-406a-8853-2b883d5065f0","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":85,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"91ff08b0-3dd8-4eaa-bb5f-d947d72df387","block_type":"box","text":"that of a fixed-rate bond.","page_number":85,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"7b787dec-3156-4f14-822c-a5b56ce608c0","block_type":"box","text":"TBA Commitments.","page_number":85,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"4104d54f-e485-49a3-87e0-105e27a29c3f","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":85,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"3dfdd7ea-0db8-46c1-8a90-bf6d37d13ede","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":85,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"69a0b2f5-23b8-4555-bbf2-1bd4450261f3","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":85,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"1384f7ae-b735-4e0f-80dd-057c63215eaa","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":85,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"11672585-50a9-49a9-9920-bf20f299e8d2","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":85,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"6fb3a972-f38b-4df2-9e2e-eb2b02c1ebe6","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":85,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"8fef28e4-573c-48f0-9444-796f72eda090","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":85,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"0cb5f3bb-b587-4dc5-8ffb-09dc58fd3197","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":85,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"4ee36fc6-2d85-41bd-9d70-0659661ebafd","block_type":"box","text":"below.","page_number":85,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"ce272018-5c46-4268-8fe1-79d6fa5dceef","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":85,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"0fe55d77-0f6d-41dc-98a6-44265b34d284","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":85,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"4e674444-28bb-4220-a08d-1e8949527eea","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":85,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"699f13d5-2be1-4343-add5-d5340f6fe669","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":85,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"443db46a-d5ea-49a9-873b-bacb53ef353d","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":85,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"757ce93e-9f40-460f-81b1-c2a614b4fad3","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":85,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"47d02375-12ed-449b-9915-1cec95d3d4ba","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":85,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"d59f5afc-8f9c-490e-b216-763817679c61","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":85,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"1b13811a-8d51-4182-b54d-02074ccac43f","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":85,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"b3eb2be3-e573-4a21-9b67-db3b257c26ed","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":85,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"3dae2c56-6a15-49e8-815d-61c2ab0576a8","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":85,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"2db912f1-a528-4348-a58f-b340175db94e","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":85,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"940e7a69-c1b5-4658-a1f8-265dec200d51","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":85,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"a42f11b1-7d41-4cf1-9f6a-07ac2fb246fd","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":85,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"5a9d8abd-b893-405f-88d7-63d423ff75aa","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":85,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"3ea2d3bb-6a67-4d28-a639-761f80975351","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":85,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"e40321d8-dc38-450a-8484-a768890e798e","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":85,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"92fa0331-15a1-40c5-8c60-3e169ca7e371","block_type":"box","text":"securities in the forward transaction.","page_number":85,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"00df296d-14a9-4b1d-b2d2-6e0bf8ede1d0","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":85,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"8c3617d1-a90a-4cd5-86ed-84a2ea2dd354","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":85,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"ae6137f6-04fc-480d-a191-eb67c56923e0","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":85,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"a62c4cbf-59c0-49c5-8c1a-a3695934e19a","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":85,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"c329465d-e128-4051-bec6-30d72d07d269","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":85,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"395f2334-8cc4-4aaf-a0ce-5f11630ceee1","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":85,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"24a33ecb-d956-40ae-96a3-eabc53feb81b","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":85,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"bb0dfc9b-badf-4c4e-ac9e-14833a875ff0","block_type":"box","text":"securities (","page_number":85,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"bee2008f-0f2e-4ef6-b2cc-f915660d76bd","block_type":"box","text":"e.g.","page_number":85,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"e33c22ad-7c96-438e-ad17-dc3dd46bcaeb","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":85,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"6d034b11-d44c-4dca-b609-18feecdcfd70","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":85,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"b28deae6-99d6-4865-9816-4a4cae41844d","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":85,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"5db244b2-c7a0-41e6-a189-7c94d9b15822","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":85,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"b4feee6d-5926-4851-a2b1-7382a4ce3889","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":85,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"4ec250be-5e4f-4bc3-8402-c3dbbfe7bf5f","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":85,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"a286c6dd-57ba-425b-844b-287e529e7a71","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":85,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"a10da5e0-7a1b-4669-b871-72f270d9130b","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":85,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"3267ef94-8080-45c3-882d-6c44754b9a1c","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":85,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"0ad3d3f8-5e36-41ae-ab51-4ef3d2e82c01","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":85,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"15599733-ca9c-476f-ab1d-4f507544c1cc","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":85,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"7b134804-4155-4341-add3-479abad8a910","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":85,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"4924677c-6f54-474b-8c14-c16c0c8ab755","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":85,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"10d722c8-da14-48b0-a76b-285e3b539573","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":85,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"a526a320-56a8-46f7-8c37-3569c74a7092","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":85,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"73066c14-f749-46a3-bc80-9fa45663782a","block_type":"box","text":"Municipal Investments.","page_number":85,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"44e3ca44-6169-4251-8f0a-4224236bdcb4","block_type":"box","text":"II-55","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8729f70f-01fc-4f82-ba99-61692458fc61","block_type":"box","text":"NM1026U-5978647-85/232","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"02831f3a-87fb-4cc6-ad29-3547510d7ebe","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":86,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"2201ed2a-158f-466a-8556-6fce7cd39162","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":86,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"b674be20-b1c4-4962-87ba-22827914f81a","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":86,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"a8ce9dbf-51cf-4589-b84f-5705fb3d1578","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":86,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"9290a0bc-857f-43b9-9ff0-7071fba8e824","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":86,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"a2148404-f481-4537-b365-c1738187b741","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":86,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"0c0a6494-c159-42f1-85b8-62fab57ffe10","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":86,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"14acc3ca-9e1d-40ef-b530-20fff93b8422","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":86,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"d954f202-31b7-43df-aaea-29557467a177","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":86,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"58566732-beaa-4352-bb74-f6add439ec73","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":86,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"8f624e6d-193c-48e8-8625-6298fa414bd6","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":86,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"47bd43ad-ce6b-46f7-ad04-8f10f666d113","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":86,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"16537d1b-38ba-4136-88e1-da82615346de","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":86,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"f68e2d1a-d826-4f9d-8969-083e38a69a21","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":86,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"296f0728-243b-42ab-96af-0913c81e9d7b","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":86,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"4cc792df-6317-4406-b5ba-3bf983473aea","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":86,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"d3af5f05-27d6-4391-9ca5-4a6f5b8e4c75","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":86,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"2ee9be85-8727-45aa-b9c0-1521d0d8ab84","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":86,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"d39a51f3-6299-4c58-bea4-3bf5371163fa","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":86,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"77f69d57-da62-45ab-92e3-76bc1c894fb4","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":86,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"94f16b67-7394-4989-baad-42c97df4d8dd","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":86,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"040b64d6-518f-4a13-821d-d3895048e0c0","block_type":"box","text":"The risks and special considerations","page_number":86,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"9f43a4bf-3972-467a-b509-b675b0030107","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":86,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"8e642d96-2408-452c-88b3-19693d013896","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":86,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"b432ff82-61b7-42e2-ba84-837d7e92175d","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":86,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"aa9f345a-3e6f-451c-91da-5de5cba489e0","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":86,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"66554560-7de1-4e1c-b494-76795ad73d30","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":86,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"dddd1e5b-c62d-45b3-a028-e6c4da81c44b","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":86,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"c40d5467-1291-4ce6-aa17-f6399360e7a6","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":86,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"307c6d04-ffe8-4634-9161-85477bc17521","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":86,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"4ba08f6e-b696-487f-b6d5-25889a173aeb","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":86,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"6d8b6eb6-2194-457e-9afb-fad505286abd","block_type":"box","text":"II-56","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"850045df-69f6-4587-b399-697abdc4b612","block_type":"box","text":"NM1026U-5978647-86/232","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e7ac1c59-6424-4b5b-a87c-774d82955e16","block_type":"box","text":"Description of Municipal Bonds.","page_number":87,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"b41c567e-0373-4c8d-9f2e-93e334ded941","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":87,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"ebfb90df-341f-4605-aff0-14801a426b55","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":87,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"2c7a8f80-6cbc-4651-a39d-217080b4e5c3","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":87,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"84118d50-74f2-43fc-889a-d388ad3da559","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":87,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"9fdf9f1f-eaa4-4f84-8dc7-92997cd07a40","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":87,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"e11fdf21-8ed3-488d-8b8b-5dd57ce2a83b","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":87,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"21e99619-ae8b-4c0d-8a9c-f996eaa89ca2","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":87,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"83351de9-42bf-4568-b228-d9cc5663db4d","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":87,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"c040f0e2-2916-4a79-9fdc-b1d22baef27c","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":87,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"55fecc17-76f3-4e8b-a653-e7c65c700b5d","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":87,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"a8ef6fae-e1c2-4395-8195-1a7389b68765","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":87,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"53237f9c-6cf4-4aa6-9087-918a8d367385","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":87,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"87e8bfc5-a76d-4b10-92a8-0dfa982f71a4","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":87,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"649169b7-77c4-4d70-afa7-b8fc2ac7383b","block_type":"box","text":"General Obligation Bonds.","page_number":87,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"946e1a57-cca1-4e39-a9fc-ab1d011fa4cb","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":87,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"cc3a0c52-162b-4c37-b9d0-77e64b85b4e2","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":87,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"e18719d2-cc62-431b-ab39-8b07f6bd5e40","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":87,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"a7fab7b5-495c-43b0-ad40-13a6c73eb35f","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":87,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"9a0bf253-107f-4e17-bac5-81e20fb493df","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":87,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"66055d85-ebe0-4bd1-9f8a-24cbc92725e8","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":87,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"95dbeedb-d1b1-4203-ba36-b2dcb064c81a","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":87,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"f03adda1-3143-480e-a2a4-3787951dd653","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":87,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"e88a371f-e5dc-4ab0-a02a-f335103bbe40","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":87,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"507492d5-d2f4-4b2c-8864-ce5c68d86b65","block_type":"box","text":"Revenue Bonds.","page_number":87,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"bc4f71f1-cb5a-470c-98e8-154749a23acf","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":87,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"9ad00f55-4a96-4079-a72d-57e25f0f621f","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":87,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"a42a9c31-5cbc-4f9c-8fb9-34ddb55d5944","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":87,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"61a62de0-77ac-456a-8d7f-366729aecc3e","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":87,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"e8104916-8d76-4416-86a1-ec22d64d4da9","block_type":"box","text":"viability of such facility or such revenue source.","page_number":87,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"3787d09b-e742-472c-acc9-157d09ad4d4c","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":87,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"5ea22a20-a5ef-4ab6-ac8f-a973ba311260","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":87,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"069d9d82-9fcc-458c-a00f-1938f55baac7","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":87,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"2cf44f85-23b9-4c81-b9e2-3fc5eb1f90a9","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":87,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"ea2991b1-d7cc-4eab-8427-c95c4ed35d83","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":87,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"921dafdf-4ec9-471e-a51c-82a94c4671db","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":87,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"e3518efc-ae02-478c-a9aa-d32ecb89fc73","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":87,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"6d711514-68b2-480e-bb59-ed37b9765d9f","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":87,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"52f94b2f-1230-45bc-8813-0145ab1cb9eb","block_type":"box","text":"PABs.","page_number":87,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"fb5cb42c-6165-493f-99cc-50431b0f69f5","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":87,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"cac990a0-9584-45b9-a11a-f76dd5700f98","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":87,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"8765bb6a-7e6e-45b6-ba5a-c6fe76a5587a","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":87,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"3f8e2b9f-fe62-4f6e-995e-2faa56b23888","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":87,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"670158d2-aa13-4652-aff0-4d2d16ae5c92","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":87,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"5086dfeb-eb91-4a30-b1e9-0445e0ac90e5","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":87,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"9b3e0d48-76e8-4e37-addc-23c2003e6629","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":87,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"3894fd24-eb05-4756-ad41-9fba6490e669","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":87,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"8a55ea1c-2bd2-4105-a4b5-690af417dc6f","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":87,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"02020617-88d5-4433-b20e-212b394b2344","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":87,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"b24ba956-1506-498f-b8a1-0cbb3e0c3bee","block_type":"box","text":"the par ticular facility being financed.","page_number":87,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"35420c95-eb92-469f-b205-997736b055c8","block_type":"box","text":"Moral Obligation Bonds.","page_number":87,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"1c08e89d-06e9-4f5a-aa50-a0244e97942c","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":87,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"764b8e29-000d-4eb2-b641-4d1620282498","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":87,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"4098cef5-7753-4a34-a344-57b0dfb90415","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":87,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"00b0a735-aef4-4a8e-ae6c-d0aa8676a640","block_type":"box","text":"that issued the bonds.","page_number":87,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"5e4a8aa2-9102-46f0-9b4e-381df2398650","block_type":"box","text":"Municipal Notes.","page_number":87,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"79487bf2-535c-48a0-9d2d-8fb5d80e23d4","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":87,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"0e750f49-b947-459e-8188-59c4b57457b0","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":87,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"c0e6b8e9-c827-4faf-ad5e-978d6f49ba38","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":87,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"c631d507-6c20-4b5c-9a7e-1b48cd3bfcb3","block_type":"box","text":"II-57","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a5d23ea6-b2e1-460b-8373-c68c87745e56","block_type":"box","text":"NM1026U-5978647-87/232","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"81943f21-93da-4ff5-81c7-3de83ab50670","block_type":"box","text":"Municipal Commercial Paper.","page_number":88,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"a4654dd2-45fb-4bbc-8117-8c1fc2f81ddc","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":88,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"2e8b1c17-9491-4fc5-bb85-49f8e1555225","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":88,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"97942d7a-3754-4d47-8e48-66f667d45f54","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":88,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"fa910cfc-4476-42cc-8d03-d8e0ca538657","block_type":"box","text":"Municipal Lease Obligations.","page_number":88,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"f368d92c-15da-40d2-8234-92d5e55a9445","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":88,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"5f8fe47d-890b-41ee-9046-91a0d3a6d8a5","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":88,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"ee2e23db-72bc-486b-b9c2-4e652914d65d","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":88,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"d2dea7cd-fa94-4f92-bada-c111d65d0d8e","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":88,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"cc0caed3-d452-442e-8079-2af2f71b00bc","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":88,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"89e50d9b-acf6-4ea7-8094-a1ed6b37e871","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":88,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"a54c9ca3-8e31-4641-bdf6-4c704752e081","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":88,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"67e911ce-ea47-4da4-8b82-2a9a8bfacf9e","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":88,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"7dd9e5ac-d99d-4f6d-bd69-cd752189b6a4","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":88,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"8bd8be05-6397-49a6-815c-207619eef587","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":88,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"42b6b9ab-d7ba-4406-8fc0-d5e68ec79210","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":88,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"566bd5c8-3a17-450e-8ce4-03d35a9ec888","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":88,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"b2714e60-5cc0-4995-a784-dadbf25ff2a4","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":88,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"ff512aaf-5734-4814-bb87-f26e8b90c9ab","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":88,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"3e7efb1e-d201-4e5f-8bcf-3613f9cc21a5","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":88,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"b3e49997-be41-4d98-a73c-453c48b070f3","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":88,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"3d9d06a9-a93b-40b1-b14d-960e985568a5","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":88,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"38ef47cb-a19a-44b4-9c0e-daa6cfb4aa11","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":88,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"8eaac711-1e9d-4fd3-9c8e-6e3ca9767b60","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":88,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"b7cc30a6-030e-452a-905f-99de2e85ebaf","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":88,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"2b0a60e4-cbd6-4222-9905-49c875209c53","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":88,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"0d239026-c6b5-4b15-aa92-55b73c25ecf4","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":88,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"c5a815fe-2fd5-48a6-b652-09c2ade7f34b","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":88,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"35d1b2ee-61d1-40fd-aadd-a5a326f72265","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":88,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"017e1a59-dc7d-4030-b203-32c4f8a05cd7","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":88,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"06316901-c23e-4728-a3ed-0f5d0949a725","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":88,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"46ddb2da-9a0b-4601-be1b-e2c2cf181a8d","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":88,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"8b7a0a9e-04ef-44ad-9ea6-ffc77fd65441","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":88,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"44685841-7eaa-43c8-bcb8-fe5d5245a17b","block_type":"box","text":"Tender Option Bonds.","page_number":88,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"ff14ad7a-afb0-419f-aef8-2b2532682114","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":88,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"f76367b1-a30a-474c-99b2-3a7e170fc49c","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":88,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"97022fb1-bc06-453b-8b28-ab1457a1c7dd","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":88,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"a7a8c478-9bcc-42ef-9afb-e1c8c7c5810f","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":88,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"880bdad3-0154-4e94-a5eb-3ee1a41a9072","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":88,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"5f7918f3-9f85-45e7-9f26-335609e65e8c","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":88,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"dce6bd71-1ab5-4611-a8c7-59a91059498e","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":88,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"4524df1e-7142-4605-a237-fff03033d656","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":88,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"b36b279c-5b8d-4fda-acba-452115020ae3","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":88,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"b301762b-1394-4c03-b280-95e374121c74","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":88,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"a8bdfaa7-784d-4772-948c-2eb9d5b810ce","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":88,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"d8198819-1281-49a9-810c-51730a0def13","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":88,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"da59489f-5074-47c7-a307-e02a45238a93","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":88,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"141db206-80c3-45d4-8937-1a24069520c4","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":88,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"6fa17e92-4d60-4047-bdfb-64882054716c","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":88,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"f6297802-4ce2-4d1d-b5ff-de04e80c6ed6","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":88,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"e86ad0d3-3cdf-47f4-a696-f2f6378811aa","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":88,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"cd80d608-647b-4717-937f-0394af46de3f","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":88,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"24725683-7ce6-41f0-975f-a71c45fa908c","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":88,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"2aa67905-4d90-47c1-944c-2463fd90e8cb","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":88,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"b51fd763-9603-45b2-9b7b-18a1cfbc6a4c","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":88,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"a39e9e43-bb20-45b8-8bed-b7be33d04387","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":88,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"24176b43-541e-4ed9-acd2-684ac398676c","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":88,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"e6440e45-679d-4d58-8374-afb803c8638e","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":88,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"4a228e30-f732-41e7-b1fa-0bce52493cbb","block_type":"box","text":"II-58","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"05cb58f7-200e-4a81-b6b8-deca3380c40e","block_type":"box","text":"NM1026U-5978647-88/232","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a512a2cb-8e72-42a8-957c-1db5fd9cc922","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":89,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"12d9607a-2a94-43a6-b68f-45107ace57b7","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":89,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"5fc9391d-45e1-498d-bf20-5a496b2af157","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":89,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"2976bc20-0973-45d4-b296-1d1f20f808d7","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":89,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"53ab6287-0566-49d7-8a72-bfeab87635ec","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":89,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"00e4bbaa-4b3e-4883-9aae-58e9e4114c0b","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":89,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"031dc4e9-a112-419e-935e-8f16f547b85f","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":89,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"9c3d08d0-18c2-421a-b79c-7de440230f13","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":89,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"53adc28a-f6ca-4d13-87f9-9cec22a1e5ea","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":89,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"fd572564-887a-4280-8b62-71ed3f5553a7","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":89,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"b739be3f-1096-4846-ab57-9e8a27f0b484","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":89,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"491c2b43-4139-4ce6-807d-6d32571e48cc","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":89,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"e418a2af-e5d5-4e63-b64e-53863c54c101","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":89,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"a496fdf2-c712-4232-accd-30ca89021685","block_type":"box","text":"issues.","page_number":89,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"6ca92396-c6dc-497b-88d9-cfc0c2c8924e","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":89,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"c0b39c83-67a9-4e3c-bfc2-61304c024b3b","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":89,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"dcabf913-f4fe-4826-9724-4c86112b153b","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":89,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"9bec8220-eeec-4329-afa5-d774c931fdd9","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":89,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"8c79f44e-7628-4062-8b7e-14ef2735559e","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":89,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"7af84bb8-960c-4ba5-8129-91a122e2d806","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":89,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"5f731a35-843d-4d1d-891b-cbde8b293888","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":89,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"4b3f54bf-ea65-47ae-b821-d04e63d5ad28","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":89,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"db36aa37-7a82-4b3d-8910-1c2da7911c5f","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":89,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"dc8163dd-baa6-473f-a3f7-d1896b75a261","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":89,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"6fabe6d9-59e3-4bb1-8b91-f808ca7e6e5a","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":89,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"696784db-8560-4def-a052-1a0b75529a16","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":89,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"40ab1655-5bc3-4f8b-a9eb-40ebfe06d17e","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":89,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"a4cd2acf-2182-4053-a347-8261a3366c2b","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":89,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"916aceff-30ff-4f3c-83f5-898b30c03335","block_type":"box","text":"i.e.","page_number":89,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"931917ec-11fc-492c-9a7a-f773c5ec37ac","block_type":"box","text":", the Fund). In contrast, in the","page_number":89,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"b0fcffe7-8b49-4766-8a73-3f0e897544c1","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":89,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"40a73cb5-08b1-4dfd-8997-61afef9986b9","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":89,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"77203e01-a359-430e-835c-76da7182225a","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":89,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"00ba7e24-5f6f-4fb7-b640-125c4b804b9a","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":89,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"191c6a1a-4569-43cf-a179-ed84c25a8280","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":89,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"d31b26c5-64db-4c7a-9a9a-f0a69c09312c","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":89,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"2cc993a0-e975-4966-9881-d4a6928fcf5a","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":89,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"d29493b4-4376-4acd-a5e1-128d201b906a","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":89,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"8c66b07c-cfec-47e8-818a-dccc4b02180c","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":89,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"70b34f07-8956-4863-b80f-8822df438225","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":89,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"e6ba4041-3cfd-4658-baa8-5af1411e3eda","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":89,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"02f7cbd6-9ae9-4925-be65-cf9a379e23da","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":89,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"c00cf8fa-fd2e-4391-be2e-e963299e01b9","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":89,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"00b87a07-148c-45b1-9025-8bcf90334ae0","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":89,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"d6ddb847-a4b6-4c27-8aed-095c3bd48ec3","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":89,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"39f16421-d121-4c4a-8b13-4a9c2ef1cfd2","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":89,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"39f8262a-5487-4687-9f03-8f34b9e13d6f","block_type":"box","text":"Trust.","page_number":89,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"20ab1a35-285c-40f1-9119-7f3a9893b5be","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":89,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"216941a4-ea6c-4c4f-97b0-587154defe3f","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":89,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"49c2bde6-f1c5-46d0-b9cb-961b7c269fc1","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":89,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"bd388ebf-260e-4e85-ad55-664c7fd17deb","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":89,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"91095ec2-81f9-4c07-8904-a071fa2c9491","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":89,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"2eb06476-fbd8-4355-9c25-a37c2d3bc173","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":89,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"4b4f58ad-357e-45a0-995f-f1a9eb85d9b7","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":89,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"10072fa6-d0eb-4235-9e45-c15c4ab25c48","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":89,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"b2bf8b08-a599-475b-8181-41c3223de73b","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":89,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"b8f801e4-51d3-4852-a839-67efad19adac","block_type":"box","text":"II-59","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"91ca8d25-fe99-485b-a1c7-8ebb8c521595","block_type":"box","text":"NM1026U-5978647-89/232","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0508d5bc-2d55-4369-9497-e0b8e322b877","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":90,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"93c1a1c2-551a-4904-8fda-8ed46d5f0124","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":90,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"8f13fcda-2d71-448e-9bb6-434400fc3db3","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":90,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"e2d1febc-b013-49fd-a05b-aefcfd74e164","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":90,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"ad874e56-a417-4bf1-98b5-b9b4431eac1f","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":90,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"d48f3df0-9d8c-4e67-8cfd-196bd2805272","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":90,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"6915f17c-be64-4349-b871-abb46a0d562d","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":90,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"af586ddc-ff27-4e6a-9e79-8568e808dcf2","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":90,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"e6e3974f-216e-4cdc-9145-3446f8d9cc54","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":90,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"696f17e9-bc23-4538-a428-cd299dd60da5","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":90,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"07a793b6-5328-4888-89de-f9a85af8969c","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":90,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"e232f064-2cda-43b5-894a-fc999ed79076","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":90,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"3481c913-037e-4ea0-aac1-9b3dcaf8651d","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":90,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"ecd31698-c4d3-42cf-a2a6-51779d3c31ff","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":90,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"b6c1fc43-de42-4ce2-aa99-585e2f78e984","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":90,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"426154d3-20a8-4d1e-9a0e-cf5a7fbf0cc1","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":90,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"795b7d5e-2bab-4e85-8c7b-b1e3e522fc93","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":90,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"40b4008c-8c29-49a2-b5e9-17eac4bad1a5","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":90,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"ebeba6b6-b620-4190-aa09-413d88febfaa","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":90,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"821d0e1c-fa14-4b41-beae-94b45f99c2cc","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":90,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"522439e7-f8f3-4004-a210-6f6bbfa6b0b4","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":90,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"4993a3d3-d254-4cc5-a80c-c51f6a22a236","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":90,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"e474cd2e-81ba-418f-a71e-bed310fa8c87","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":90,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"5b08245a-8b86-48c3-9489-0cee8d76361d","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":90,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"8bc80466-f140-4f90-98fa-065cd036c376","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":90,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"f222b5c5-0e10-4a9e-aec2-2b7703fe1f6e","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":90,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"c65572c5-4cb5-4777-ab15-ddd17cc334db","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":90,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"a04cc543-7b82-4caa-ad1b-eccae946a18a","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":90,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"9b023069-c2a8-499c-ade4-51ed06195f80","block_type":"box","text":"i.e.","page_number":90,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"a5b7483d-a44f-4558-92c1-ec76bb38ddea","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":90,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"a71574d2-c4c3-4f97-af41-387fdacfb38d","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":90,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"f423ec44-9dfa-486e-b876-9d85e6abb11d","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":90,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"a4cf1bc0-4c7a-4c24-bcd0-685d1886aca3","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":90,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"f5e2e8f5-f71e-4947-8e21-fe102120e902","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":90,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"d8bf19e2-6bb2-4440-b395-adc94f000546","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":90,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"bf9c8ef4-60fd-46ea-b180-40e3fe99be9f","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":90,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"1605537f-7190-4ddc-b309-e5d40373fcd4","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":90,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"925bcdfc-488f-435a-98b5-3e5237289d05","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":90,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"8c240c35-4ddd-4645-b2ba-8581cea3d981","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":90,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"0ec6d282-a7dc-448b-9608-6d2ff2017abf","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":90,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"f3b3cc15-3482-489f-a675-482e447b9ad3","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":90,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"2e16e6c0-3712-4542-aaff-5feacae703ea","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":90,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"60f8833f-fd30-4164-9ddf-824979813073","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":90,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"2ce362e0-814b-480c-9380-b3f986b85093","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":90,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"493ecf80-bf7c-4173-bf13-7e984ead654e","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":90,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"ba673aa0-8acc-4d84-8bfa-fa876526957b","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":90,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"92ab3d70-0ecb-4c62-a81f-3d0c863a3881","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":90,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"d81376c6-8ba9-4abc-b23d-c28a4a169cc7","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":90,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"e9f6a64e-59a8-4a6a-9dbe-c6fd4498f3be","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":90,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"a1cfd7dd-1598-4745-b9cd-ae441a35f72e","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":90,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"38d12c02-c1ad-4071-b0f5-48afd34fd82b","block_type":"box","text":"market is not yet cer tain.","page_number":90,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"03aaf03b-f39d-4ea3-8c8e-62b961d170be","block_type":"box","text":"Yields.","page_number":90,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"cfc7db15-802c-48fe-90f8-5ef097ce9ff6","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":90,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"171b1bb9-6a37-4e50-945b-aa3ae0f2b9cb","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":90,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"edfbf3ae-d34f-4a9b-8780-d0b7c5d74d81","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":90,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"2fe5cd34-1269-4068-bc9c-35770cfdbde4","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":90,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"90bfcd69-e492-4bc2-95bc-94489c6a1908","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":90,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"d9b22fd1-f072-4425-a16e-2eb343d8428f","block_type":"box","text":"II-60","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0917932d-1292-47a9-8258-9b1276853833","block_type":"box","text":"NM1026U-5978647-90/232","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"de531ed5-59cc-4d6f-afbb-eb2499a78312","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":91,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"e9276950-e3cb-44a4-b617-50caa092b9e7","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":91,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"81b61c15-6699-400e-93bd-d9ff15e06734","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":91,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"534a152c-27e9-4a53-9ff5-4afec327db7e","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":91,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"7c9ef1c7-1208-4c9f-b5ec-4080c44ef886","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":91,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"36f0f941-e33f-4e17-8bec-704cddaabd46","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":91,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"d0f2aa74-452b-462b-972f-ce5d227b3507","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":91,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"c3f4a86d-16e5-422f-bca4-5184d0a1c0c5","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":91,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"bfdac16e-7f9b-4856-9ffd-2ce7e2d454a5","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":91,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"0126e287-c99d-47ff-ac9f-38cacb73256e","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":91,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"cc34fc86-3cd7-4130-a853-4f287700c417","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":91,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"d71ee3bc-e640-4bb7-9bfd-2d2cc56204d6","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":91,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"b78b4bb5-7b71-4dca-95ad-6e05a0f2b043","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":91,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"d7826141-14cd-49f2-8b96-0cb419ae4270","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":91,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"df8b4dba-ff1e-4591-a0a9-49eb69418209","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":91,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"52fbe320-82b1-4d07-8226-4dfcc068d1b6","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":91,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"ddff6456-0310-4e5f-a077-7a3d123210d3","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":91,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"d43d5c22-bfc4-4942-96dc-a7c506e5abbf","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":91,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"fc5290a1-bac1-43a7-b2a1-e10f43112b9b","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":91,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"9dabb9be-88ee-43b7-a47d-a2cc93ad8822","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":91,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"a73d1909-3c1e-434d-88d9-dff9164153c3","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":91,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"6536074b-1ba4-4074-a185-adb924930935","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":91,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"b1ce927c-688b-4739-ae4e-69af3581ca48","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":91,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"e02b8b8f-432a-4db9-b447-69855883961a","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":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"406da0ec-ba00-49d3-b4aa-f4a4392c76b9","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":91,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"3983d219-4889-48cd-ae96-0d51bf841951","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":91,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"79441860-5030-464b-bf71-1d33fca84450","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":91,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"7619259a-6198-409a-af9c-1fb734415cc6","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":91,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"32c2d0a7-de81-4e9e-8ace-a38738f3a84c","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":91,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"f28fb258-0a6b-473c-80c5-04119dc06dfc","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":91,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"59bce025-7e5d-4595-8993-dd38b9eda82a","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":91,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"29d2721f-ae46-4497-a602-83e7fbb651b0","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":91,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"b3bb2540-223d-4e46-9d36-953212a9b1a3","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":91,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"0dfa316d-2669-4207-b0b8-022c90eeec42","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":91,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"888353fd-1ef0-4c32-861d-07e77d523794","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":91,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"7f3e5aad-14da-479d-b42d-1be19e75a895","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":91,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"044b7776-282e-43f3-87b3-cd2c43caac95","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":91,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"c0fec533-9c4f-4e22-a3b5-814b6b62c40d","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":91,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"6fdfb12e-b319-4a7d-af21-b3f840684fe3","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":91,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"31ff61ab-7126-425a-98df-2b4004f25a28","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":91,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"efe8bc0c-9fa0-40f2-9f21-2f3263b9bff1","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":91,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"96d237f1-bf79-4a8e-b8d9-7eb6fcea3546","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":91,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"2a92e540-492b-4b7f-8c25-233bb8bec698","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":91,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"2cb5a736-cde8-46a2-84a9-7a7d98509080","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":91,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"12a8f7ae-9d1f-4980-bc1c-6d3fab247948","block_type":"box","text":"Call Rights.","page_number":91,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"dfe896c2-e35f-485b-b12d-c2704a01243b","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":91,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"e7e8dcc7-221b-4d2a-9f3d-4545b49e2640","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":91,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"d4b48277-39a3-41c0-81a6-f29a4b3bf70f","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":91,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"bd44cb58-f0c4-4357-bdd4-a2fa37641647","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":91,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"9c9ecfbb-72b2-4504-888e-117a976e54f8","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":91,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"9fb28e70-7b34-440b-9312-244bad2a527d","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":91,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"6a3735bd-1458-4f75-a510-630aa50224d2","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":91,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"dad4a891-69eb-44f7-bcf1-16c55fc5a2fe","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":91,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"ab182443-9b92-40c1-8b9a-a29a4108d310","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":91,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"79697bd2-6b7b-448e-a03c-c3070f2a1307","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":91,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"f0167593-ea5e-4e51-b7f7-1b6f52d074dd","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":91,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"c8969f51-3708-4382-9d96-31824c0aded4","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":91,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"5f168959-df6d-4f56-acae-d3f0fc352616","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":91,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"6ad94004-92ee-4ecd-8f4d-8eaee741bc6d","block_type":"box","text":"II-61","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7d3634b0-cc8c-4478-945e-28a725b49771","block_type":"box","text":"NM1026U-5978647-91/232","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e7f27d42-99b4-4dbe-b4e7-986416a568e5","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":92,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"47eda079-39f9-4fcd-8375-28061dd63d0d","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":92,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"ce78fc67-14a8-4599-a7ce-d60e827c2b07","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":92,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"7edd75a3-d60c-4235-b870-78b63d04b898","block_type":"box","text":"i.e.","page_number":92,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"8dc5894d-73d1-49d1-b2dd-0aa944f84780","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":92,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"2a79cd72-28ba-4b4d-96ac-3844acf89426","block_type":"box","text":"rates).","page_number":92,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"b52f76d7-7729-45a1-9c8a-f3bc00587d7a","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":92,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"3ea49fe0-cc19-4747-bf5c-d34fedea6c80","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":92,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"d8885a25-efc1-4c03-9540-39cee012ff5f","block_type":"box","text":"e.g.","page_number":92,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"ed53416f-d693-47d3-8a17-6c6da4ffca83","block_type":"box","text":", an exchange of fixed rate payments for","page_number":92,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"c7431ad6-fc8e-4feb-9c4b-5bab0ee788f7","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":92,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"2e762eb5-ce4b-4e81-8d9c-053f0cca8246","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":92,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"836b78c4-921c-4ea1-8ab6-73f32edda6d2","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":92,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"2e5f5830-624c-4b36-ad1d-6b6664328bcd","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":92,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"d8a53bcd-a1ab-4af6-b1e4-c8d8f48002f5","block_type":"box","text":"with the same attributes as the swap (","page_number":92,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"231a8fb6-1385-4b4a-ac1c-d3d7ca4acc10","block_type":"box","text":"e.g.","page_number":92,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"14db1b00-cc2a-45fd-ac34-123134f6bc9c","block_type":"box","text":", coupon, maturity, call feature).","page_number":92,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"4fcbffaf-1113-4fc9-b96e-85a0a5716aae","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":92,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"78a5da44-674c-40b8-ad98-3f8a383114c8","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":92,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"abd9aacf-9e5e-40b1-b7ee-2317d4902d82","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":92,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"e41b5335-7e54-439e-b1e5-341fa5f85f06","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":92,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"cc0f6171-d61b-4ae3-a3b0-8ac815672fb3","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":92,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"9bc1d925-83ed-4dc0-9f65-5ca4b7850b01","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":92,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"f5f6001b-330b-46d2-8a2f-8e88aa1db07e","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":92,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"93ba2b1a-042e-4951-b602-79c8b2b19c79","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":92,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"7cf0a654-95da-4436-9ada-c0d50f0ea745","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":92,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"84069afa-bf94-41bc-9dc8-8e4f32714d39","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":92,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"bd4086f9-6711-432d-8350-0ce2c0aee54a","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":92,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"a6af9438-72f8-4925-bf1f-94fdc464d97c","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":92,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"80847739-91f4-4bd4-a2e0-8e6b31e8be7e","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":92,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"dfc9e3ab-ef48-4303-9778-735b9899e3d4","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":92,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"0bd0eebe-8f69-4064-99f0-9a05005ad43e","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":92,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"392d31a4-2a96-4ddb-b6fe-ae1566024f77","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":92,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"c8720f1e-d939-4adb-a2d2-3e9dc072ca41","block_type":"box","text":"Insured Municipal Bonds.","page_number":92,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"85f31dd5-6d5b-4392-8f72-5c82c0ac780f","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":92,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"22bb4e68-b4d2-4051-bbbf-ed77d56d3ea3","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":92,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"14104f0d-9b8e-4961-891c-2d8caf05a091","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":92,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"cba3f4b4-3588-47df-b58c-a2307bede996","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":92,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"1eae0baa-3b91-4f4c-96f3-b0656884b412","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":92,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"f335d551-798c-481e-9da0-52ca8d654c89","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":92,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"7a0729e2-97e5-4b2c-ba45-78d33d8e5ec2","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":92,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"ae486691-9301-4129-a5f3-cc7d21778827","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":92,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"7bfbd1d0-7d72-407f-9ae4-b71d80086ac0","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":92,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"d5781786-78f0-48df-86aa-05076895fdbc","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":92,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"25cdae60-95ca-4694-a6fe-dd9291da8d81","block_type":"box","text":"bond could drop.","page_number":92,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"3ab3dee7-1d34-45de-b32e-f7aa76ab3747","block_type":"box","text":"Build America Bonds.","page_number":92,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"0c009cbf-2a91-4eb1-aee9-8ecfdb0a7d49","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":92,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"d01736ef-23f7-4835-a81d-0cba4764d508","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":92,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"83dbdd19-7cb8-48c4-92e8-a5734a62a5db","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":92,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"c96104b6-cca4-4c1d-b3d8-94f7801840bb","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":92,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"8a39c773-de88-4d50-aecc-6a6dab6f44c6","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":92,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"0f2de512-957e-4f53-9a8f-e047e094fce2","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":92,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"a7571f0b-ae29-413c-942e-a72404f31040","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":92,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"e4bf80d6-0551-4217-bede-ad0660b33230","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":92,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"fb47b19e-6dfa-4a48-a23b-12a627517bfc","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":92,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"a5c5a2db-b9e2-4f98-9a55-23967c71747e","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":92,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"cc471bd0-147e-44c0-aa2f-a43557fbee31","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":92,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"415d4a93-6e88-4da5-a92d-82a2ae1c7f21","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":92,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"56a91e24-a8d1-4187-bc67-d097606c00a2","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":92,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"93e4b582-615c-4590-8cf5-fe42603298f4","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":92,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"5e009e93-685a-4db7-b5d4-efb43a86ddc0","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":92,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"cdde97f5-682b-4028-8b4a-733ed30bed0a","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":92,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"8fd7c0c5-ed36-4d03-aa0e-33b4dea4a22e","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":92,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"32e46c86-efcf-4df7-bd40-dbfb77b0da5c","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":92,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"f3d60001-2d6b-4d8b-8091-f7afd9f31885","block_type":"box","text":"II-62","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95116c8f-935e-44ca-95c4-be89a56f7f94","block_type":"box","text":"NM1026U-5978647-92/232","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8e31cbfa-9625-461c-aa8e-12743f96e8eb","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":93,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"5de6e124-d7fd-4728-a8f0-47d1bcb5c9ad","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":93,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"3903486c-f9c1-4549-86a8-b55d1bc3f429","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":93,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"da9bdcf0-c618-49b1-aff0-ac9f35dc6ab6","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":93,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"b5c5a74a-bb58-423f-a1e5-828ad5a17211","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":93,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"18990232-2bf9-4d9f-a708-4a477ba714e1","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":93,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"deb0e56c-4236-45f4-86eb-eb6a4b682254","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":93,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"4c75be3b-d456-46bb-84e3-62fd7fbc9dfd","block_type":"box","text":"their face value to the sponsor (","page_number":93,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"b2aa014f-df7d-4a9a-b1bc-e04c34664198","block_type":"box","text":"e.g.","page_number":93,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"04efdce3-fb6f-40c0-9048-14f132d400e3","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":93,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"97fbed1f-4843-4ad3-ba57-26c1c0a1a666","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":93,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"526bb232-7f7c-4562-9dfa-e6fb3a6d8a70","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":93,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"025f3cde-e956-4519-a590-fad5fa855b38","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":93,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"9759461b-c48e-403c-8112-1ad17ca9c30f","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":93,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"ce7b0702-f8d8-42ff-9bf8-53cb2695fb04","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":93,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"fd04226e-84df-40a9-a0c3-cf0c45f38e59","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":93,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"36859f4f-e78f-4221-8406-b6d6151c980a","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":93,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"2e445b99-7bcc-4f42-b71e-eb5fd03cdcc7","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":93,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"eaf62f1d-db3c-46c9-a444-0a052e337c97","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":93,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"fd3625ff-169a-42da-a91c-33acd221bd59","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":93,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"c4690edf-453c-4319-9159-15895525235c","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":93,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"5d123c98-db0e-4e17-be3e-f3fcbda36695","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":93,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"2ae7af17-e4c1-4134-a6ed-f2424d5de477","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":93,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"de2e140c-6714-4b96-bfb7-a87610cbdeda","block_type":"box","text":"such opinions.","page_number":93,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"1610e317-9331-43ca-8113-3eb3753a8b47","block_type":"box","text":"Operational and Technology Risks.","page_number":93,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"4ec900dc-ebf9-4b8d-ae4b-fdb3fb792f2f","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":93,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"f0782650-9806-4228-b79e-941436ddfa43","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":93,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"6c54286e-ef1c-4a31-ade7-ec8834277d92","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":93,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"c9d9eccf-1fc1-4c0d-9bd3-a0a663f2e494","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":93,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"03b28e87-895b-4aeb-a2b8-c21dbf81e01b","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":93,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"cdba40e2-0514-4588-bf18-6975cc780b8f","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":93,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"fd86a241-0cde-4bf2-83f1-2623a1406b02","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":93,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"f19ca6ae-f961-43bd-9156-523cd893bce3","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":93,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"8fd02713-704d-45df-b8f3-b765fd773110","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":93,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"b8680469-ab80-4528-b855-6ef91ed5d7be","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":93,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"541ad507-c615-4699-bc09-02e0cbb09903","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":93,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"9906befb-92fc-4263-a66d-92a2b8530852","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":93,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"6fa0a77f-7246-40d6-823f-ba913c5b6a2d","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":93,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"16555a5d-beee-4968-85d0-327377d43b8b","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":93,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"8e5bb0cf-d346-4608-8f39-9b6592897768","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":93,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"50fec025-afc9-4ad9-85d1-4d4f8354ecae","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":93,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"447dc8b1-4986-4984-9a6c-fc59ec159333","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":93,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"c58d4491-c0c9-43b0-a04d-9ecab5fac7c5","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":93,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"246035fc-4f15-4b66-9526-0d1db318dfef","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":93,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"5f95ad94-76b3-4421-8837-667dbe4bb1f2","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":93,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"4bc74604-be85-42be-ba9c-eaffdeede1e9","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":93,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"93a9be26-e4ee-44c6-8907-1416118ba687","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":93,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"3b37e86a-117f-42c9-8e93-ae1461a82c5f","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":93,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"ccc85b6a-4e38-46c0-bd82-98b43fc55ea9","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":93,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"e217573d-212f-4741-8999-746df085648f","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":93,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"3cdfa9e2-c7c0-40b8-ace4-9bbcd1bc1522","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":93,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"b4d0e516-dd6a-486f-8048-72a155b7ba1e","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":93,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"946a7612-b70a-4d6e-be84-57f061868cb9","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":93,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"ac232d57-f558-4aa5-8c9d-da69b9ca3ca7","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":93,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"de76dac1-594f-4d4a-9f9d-31b61a430ede","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":93,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"faa49fe2-7e99-4566-ae30-33598c04971f","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":93,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"149537c5-659c-47a5-8613-e10aafc5950d","block_type":"box","text":"infrastructure assets.","page_number":93,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"4e37634f-15d2-4778-975e-a4ab78009e6c","block_type":"box","text":"II-63","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"252d4912-9bac-4f16-800a-dfcc6446cd8f","block_type":"box","text":"NM1026U-5978647-93/232","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"891fe4ba-dde9-4a4f-93ab-143b4197c0c7","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":94,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"bb249040-0d6b-4d7a-af4a-49d36625aa7e","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":94,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"91344a33-3d0f-4720-8f13-c8ebbefac8ce","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":94,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"7e700297-c9e0-4b7c-b570-7fc591190820","block_type":"box","text":"or services.","page_number":94,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"f68fe231-7dad-41d7-a618-692850f3d991","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":94,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"5922126c-6bf2-4cac-8d86-3a06a7c247a5","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":94,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"bc70406b-f7ef-47f3-aed9-4157af60cd7f","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":94,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"e6c71ade-e344-48b8-b40a-dd24a8c5f65e","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":94,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"b4e089ae-9e9b-462f-a50e-a4655c6326d7","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":94,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"3a02e270-5e1d-43b5-ba1d-7bbdf963f736","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":94,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"e8d1e83c-f5a3-48f0-ad19-59ad0b100788","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":94,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"b3626288-4224-4f37-bc80-fce44bd9c0fd","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":94,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"5e35d8dc-76fd-43e2-ba29-3b2b26831a12","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":94,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"19f4fecf-aff6-4b39-bdc3-72679a341497","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":94,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"bf4ab88e-3ae1-4fda-991c-fe49fe8e5982","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":94,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"64885a74-293f-48e9-9b3d-00448d73e986","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":94,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"533df610-7c87-4197-93d0-eff15dd04579","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":94,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"0b38c3c5-9f61-42ed-8d5a-ad949de6a4e6","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":94,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"d99cc60b-99af-41fb-bc03-c20086f95c94","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":94,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"231e303a-1c23-46cd-bb0f-4b934165abaa","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":94,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"94502fff-aa34-43d7-ab93-9294c28a2a15","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":94,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"e5f9a449-c5a4-45b1-92e0-5ec829cfc7b3","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":94,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"f5f36779-545e-42c3-a1ed-c66accc5abae","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":94,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"df8a7ca6-abcf-44ee-9682-03e6c43c6851","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":94,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"6d9b1cea-37cb-4621-a7be-e8c0081fba75","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":94,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"a93567fd-460e-4ec5-bee4-baef9843b510","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":94,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"5863d30d-95c0-4dc9-81bd-a5917f2caeb0","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":94,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"332f56ff-5c5f-419d-b048-e23dbc57a179","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":94,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"c2186c51-4f46-456d-bcca-480b67451254","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":94,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"3db8bd13-977d-4354-896b-c40233f14192","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":94,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"610c4044-eae4-40c8-8f9b-998c94ea1b7b","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":94,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"c89a24fd-4c1c-441f-bf96-ab80dc15ff2d","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":94,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"409feb36-4425-4ea5-a486-d27bf59e55ff","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":94,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"216f800a-091f-4b33-a228-47e7bb4f3b53","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":94,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"c90d7a11-ad7d-4002-a00b-413331d7aa85","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":94,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"b874a94e-1131-4941-984a-4a322b21efc5","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":94,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"08763226-32ce-4cd6-8762-c7e7b6afbcba","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":94,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"044a5bfa-1306-4188-af2f-03bffd9b1e87","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":94,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"d8400cac-a47f-4247-9a13-696d7a283ac6","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":94,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"dc00352f-1b18-4c7b-bbfa-377947aa2369","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":94,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"f140a168-e8b3-40b1-aab8-6e5c7241ae86","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":94,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"3436e131-cba2-4a6f-8934-c9813d94f42d","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":94,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"02fb9768-57fe-4d0d-8769-4cb15d7f485a","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":94,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"bfa7b7da-f35c-4bb4-a67d-4f0a08594c0c","block_type":"box","text":"resources to monitor and implement required changes.","page_number":94,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"c3dd5249-597a-45d8-a239-3ac2b5d25f4d","block_type":"box","text":"Participation Notes.","page_number":94,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"3a61560e-6f71-4428-8e7f-41e520f987c2","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":94,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"70bbe077-851d-4983-a2fa-e87fb3f4d471","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":94,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"251f235b-ed39-4e2e-85d2-24cf176db1a8","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":94,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"8e9e5f08-bb96-4cd7-87e4-fb2f53e6b25a","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":94,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"6644993f-eff2-4e9c-898f-a803c5a2761a","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":94,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"28191457-c99b-42e7-88cf-2b0384adef93","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":94,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"30fece8c-6b8a-4373-8632-593da7f8bfa1","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":94,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"c5bf2b98-60c8-46e2-a633-dc00d98aef39","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":94,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"0e05a88c-76fc-4202-9b6c-b13c872c3080","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":94,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"cdfc4ceb-1cbf-4203-9055-f161a24e34ba","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":94,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"cd27da84-6190-4265-80be-9dc19f75da10","block_type":"box","text":"II-64","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a5e99d3-2983-4266-875a-b2be623f8951","block_type":"box","text":"NM1026U-5978647-94/232","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3195a3ad-2a2c-43b1-b60b-7bbd5cb1e704","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":95,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"43ef1948-5eee-4bdf-99e6-c9d51c9b8ee2","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":95,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"9e6b785a-9b20-4eae-af8e-7ffbbeb6cd8f","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":95,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"a72469f0-c167-4e45-95ee-1d8ff7607bf4","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":95,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"0df616d1-add8-4d17-ba96-89c385712e49","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":95,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"442b946d-2101-4dde-8a71-1a66f47474cd","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":95,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"733eb6b9-a351-45bb-a95b-8aa6bb72f495","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":95,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"e1f7ca66-72f9-4993-ae63-40a488545472","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":95,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"97ffedd5-96ae-4d90-bfb4-5de99aed1ca4","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":95,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"d4e20b58-dae2-429b-ad04-1740969876cd","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":95,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"70bf1623-a0e5-4caa-8cf8-86d12f7bc5a8","block_type":"box","text":"Portfolio Turnover Rates.","page_number":95,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"b718db7d-82ce-4ffc-8dbc-93d5683987b6","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":95,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"23f710ff-50ef-41a2-b101-bfc467239451","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":95,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"b7ff4850-6ddf-4530-ba5f-fdbb15da6c8c","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":95,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"706feb0a-f8a3-4de9-af30-f1cf5eee290a","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":95,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"18a2d77a-f787-498e-af3c-d08bc6e3ae23","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":95,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"174dff3d-3520-49aa-9605-42036e1a08b7","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":95,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"1424ed17-88ff-4805-bac1-19230fe7a0ea","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":95,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"736d2745-106d-4107-8386-9145f6f7a4d1","block_type":"box","text":"i.e.","page_number":95,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"51f163c2-9245-4e32-b07e-55f33644a081","block_type":"box","text":", 100% or more) may result in","page_number":95,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"2694eb69-a487-41ff-9d55-bb49ffc873ce","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":95,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"bee88521-186a-458f-ae72-0ae16665f8a4","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":95,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"ad2feaec-8e78-4a67-87b4-d0f65afc62e7","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":95,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"4ce41c3a-3fce-4e6c-9dec-f2c49825ded6","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":95,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"7625377f-8264-47f2-a885-bff0af124e37","block_type":"box","text":"Preferred Stock.","page_number":95,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"64768b04-2768-458f-b9b8-d8d46a0f295c","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":95,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"dc7bb70a-70eb-4755-98b9-2ba4ffecb3a0","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":95,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"08628209-1f50-41ac-bbe6-6eab1c0455ba","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":95,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"371698d1-2bb8-473a-9cdf-def870e725f4","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":95,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"feb38261-c002-47b9-8d1c-142e6bd8187d","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":95,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"34fca7d4-a1d2-4394-aa31-5549b5324c89","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":95,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"f3a78540-1633-45fe-b7fc-d50c4baab3bd","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":95,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"30240e3c-51f1-4c5a-b157-8f00602b1200","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":95,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"7bcb29ac-f587-4b98-9c60-69c64cc17a97","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":95,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"43a54561-0b3a-4e84-8a1a-600a446a9be6","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":95,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"93fb5b84-ef3c-4e45-94f3-c140c9293ead","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":95,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"7077bdd4-45a4-4409-9c36-0537345dd974","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":95,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"550ec844-a663-4836-ba1d-60550ecca673","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":95,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"a466c50e-85e4-4cbd-a848-72bb2b1e8da2","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":95,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"ebe8400b-17d0-464d-9b2c-d876a96a6394","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":95,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"dcd68a37-efb4-46ba-b58f-eb65350db875","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":95,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"520852e1-a80e-49b7-bace-49a56aa9690e","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":95,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"f434eb60-5ba6-43e1-8fe0-dbc9d2548f98","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":95,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"2088bc64-44a9-4070-937a-b99a44c07052","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":95,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"fbaf580a-015c-4dee-b2fe-6e35fd35c37f","block_type":"box","text":"Trust Preferred Securities.","page_number":95,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"ddf3ec0b-52fb-431e-b0c9-f5de329aeea2","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":95,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"ba69285a-6117-4bce-81b7-560624226140","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":95,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"c651e8ad-a0b1-4d1e-b630-4e0edbad5956","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":95,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"6e1ceb2c-baea-458d-8f8b-d0447b086673","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":95,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"08ef20dc-2b6a-4f44-af97-1d5a3008fcad","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":95,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"796f4428-3b7e-4c95-8d85-810ba671c11e","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":95,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"d2ff0c63-b08a-42ab-b8e3-ab4ec49358ea","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":95,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"3e83abfc-627c-485d-be19-5b55988311ed","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":95,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"6130693a-9876-4512-819d-7708587fe2db","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":95,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"469a90e1-7c53-4b9f-b94d-4cf8ce5c3c0d","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":95,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"533e7fe1-725f-44a0-b67a-042bf9f2354b","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":95,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"ff269f09-d680-45be-a65e-d4db288098fe","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":95,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"bcca475d-c151-4402-b255-09bf69b4bd03","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":95,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"1e0bbe15-7188-4d48-ab2f-dce8466db155","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":95,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"b20865f1-3b3b-4f52-b7e8-25576e4b00a2","block_type":"box","text":"®","page_number":95,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"6d59bab9-e0cd-402d-84df-ba5c890f84c1","block_type":"box","text":"”); monthly","page_number":95,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"d2eb77a4-ba47-4fd7-945b-c9e7d1fe6a35","block_type":"box","text":"income preferred securities (“MIPS","page_number":95,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"6b113ab3-b9b2-4d94-a6b3-e4e7b05b4f09","block_type":"box","text":"®","page_number":95,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"857f3e37-0487-4a21-a226-518873c39f32","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":95,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"0f5d9dc6-6cc6-473d-b85c-bff7a39b52d6","block_type":"box","text":"®","page_number":95,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"df764970-45bd-4f03-a4dd-3ff9845de6f6","block_type":"box","text":"” ); quar terly income debt securities","page_number":95,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"6777b865-a0ce-4714-b392-b677f8109e17","block_type":"box","text":"II-65","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34ee9f81-95eb-48a9-a38d-ff5df5620642","block_type":"box","text":"NM1026U-5978647-95/232","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"291ea1c1-d844-4e15-97c4-68a61656495f","block_type":"box","text":"(“QUIDS","page_number":96,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"f3054c34-046b-4feb-b3c8-b269a0065872","block_type":"box","text":"®","page_number":96,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"9633f3e9-2e85-4967-95fb-0095b3cbf1eb","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":96,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"8ce75ea6-4fc6-4a56-9cfe-4f45718e2c15","block_type":"box","text":"SM","page_number":96,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"552ad046-4383-459b-8f31-1b1410b1aa04","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":96,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"c85300bc-7151-41a9-b6a6-365c8ed2d252","block_type":"box","text":"®","page_number":96,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"575113b7-3596-49ae-a38e-03726f1fa23d","block_type":"box","text":"”); public income","page_number":96,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"1c1738a7-7016-44ab-b668-014122e5321f","block_type":"box","text":"notes (“PINES","page_number":96,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"4a69d7d9-3b6c-447d-9fc3-50655dc1e5ce","block_type":"box","text":"®","page_number":96,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"58e394b5-9a24-4e21-881d-54cd7f67f7af","block_type":"box","text":"”); and other trust preferred securities.","page_number":96,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"2cd99b6e-835c-4848-b636-d03c4152a711","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":96,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"36460c8d-ce14-4bcc-b5cf-78d0461057d3","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":96,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"e20a3dcc-622c-4eb0-b46d-09b21ae2f322","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":96,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"8a334e4f-bd6d-4ad8-9401-792109a90cab","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":96,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"0d470c6d-4398-4593-a07e-645a5a6bec83","block_type":"box","text":"regard to whether all payments have been paid.","page_number":96,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"02ef6303-1659-411a-ad94-150529295088","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":96,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"7be9d8ed-f936-4812-b9b9-d3eaa324b9a1","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":96,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"c15a8ddc-37d3-43f1-8df2-bc258345da03","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":96,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"8ecf85e9-2916-4153-8ff5-a6ca8f2814b8","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":96,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"1acf3635-873c-47ee-9c88-83bc70842166","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":96,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"997a9f3a-5a34-4060-a8cf-655aed6e130e","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":96,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"ce7f7f26-1625-4944-9de8-8cf4fb58d00b","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":96,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"bd8f346f-b99a-4fdc-9ad9-162a20a10c77","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":96,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"fabd16cf-f531-4275-bb0d-82f253c71e7e","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":96,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"b1edf287-7129-465d-9d67-8f889b256987","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":96,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"843c618f-d1b9-4112-8fb1-81ddeea19921","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":96,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"e3db5e96-2833-4c31-a5a5-819bfafcb108","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":96,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"abcb6cf9-ea6f-4047-9c52-30d222cc4d98","block_type":"box","text":"debt securities.","page_number":96,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"71175661-89a7-499e-a538-9621f756aeb7","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":96,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"e4cd127b-8a9a-4771-8d5b-975e5a7c5a9c","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":96,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"0fa6502c-0e22-4388-966d-6b6748147e21","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":96,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"4f95fe5b-47c4-4512-aa7a-5aed4e512aac","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":96,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"04d8a69f-5c41-4f7a-ba71-dd456345b0e3","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":96,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"13dfe0d7-7b1d-4729-baaf-fa679134f88f","block_type":"box","text":"i.e.","page_number":96,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"58e571fc-9324-406d-a971-6ac29bec1515","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":96,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"1c9b0cbe-21c0-43e4-8e05-317bb2d7a60a","block_type":"box","text":"buildings.","page_number":96,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"c3ced50c-3cb8-42e3-8b44-9db66efe1886","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":96,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"24a4c9e0-3862-49e0-aad8-a13961a3e5d0","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":96,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"4959b9c6-492a-411f-8f88-7f8bd2df178c","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":96,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"2a2878e0-7977-43b5-81f6-cb2055c6b3ca","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":96,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"c09a254b-f5c1-414c-bd03-470b387fe2b9","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":96,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"f0d9ce6b-1655-49b6-8f88-748b301ad84a","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":96,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"8fe588ad-c5b9-4f77-b1bd-134a61597366","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":96,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"c50474ec-7792-4abf-a29a-9ff9a8693e9d","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":96,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"53bcefdb-2431-4511-9302-a07aac66900a","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":96,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"1593a154-3bc7-49f9-ab74-d30a030e5360","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":96,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"076a0488-2bb6-47b8-b681-a3b0c3351cfa","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":96,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"ac7aa9d1-ddac-4c67-a488-d1d9de4a04f9","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":96,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"e2961260-6113-460a-851a-2f90fd97d3a7","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":96,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"92af61b0-731c-49ba-b4ab-9fa2af8f2461","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":96,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"48a2f3a8-4cf0-43ea-84a1-f8f5cfb92150","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":96,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"2d40969b-d899-46ab-b212-328eb78d9d9f","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":96,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"67f45324-b9f2-4666-b161-dedb3e6d61b5","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":96,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"d58c881f-9c20-41ac-ad91-62ff924a95c3","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":96,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"543f0a72-b82d-498f-bb60-40fc85e4020a","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":96,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"8d4a6c5b-e506-4a71-93c9-d29a78e9051e","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":96,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"9204a448-f3e8-45ae-938b-9ed768fc752b","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":96,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"f502c40a-7878-4d27-89b8-1bf17f87f8e5","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":96,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"b3d59f3d-d825-4120-ae9a-d0e2a6845417","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":96,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"8130be18-7e9f-40ba-b07f-b1e827965ff3","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":96,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"a4fe21eb-3479-4db8-8559-b69de1e96319","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":96,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"bd24789b-7a42-4e80-9a13-b54edb43f223","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":96,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"9f2b06c4-cb26-4161-be18-7a4d76e6453c","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":96,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"cf026887-56fc-4fbb-aeb6-21c87a50163f","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":96,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"6ad8dc3c-3e20-4250-81f5-e51772b50bb8","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":96,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"288df5d4-d6ba-41af-8892-a60edc7c87ee","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":96,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"27b15eca-9e0c-43cf-b842-d7b5331cfac3","block_type":"box","text":"II-66","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2763213b-3204-4744-9174-3b86514cbc93","block_type":"box","text":"NM1026U-5978647-96/232","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"295c2e38-1866-4bf8-a72d-a1e4843c9b78","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":97,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"4ddca5a8-1eec-4853-8499-638f82880f28","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":97,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"1d3172f1-431c-4afc-82a2-4d86897c8868","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":97,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"e27c6d26-dbf7-4f6b-97d1-060cf00040d4","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":97,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"873f4cb1-0762-4a76-8ab1-97b5c9bcb9f5","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":97,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"70d0ae0d-8f7b-479e-a451-db382f5b10a3","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":97,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"cc7a9bd6-54e4-4fc1-b70e-a5cef6ec57ac","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":97,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"204a91e9-80e2-49d9-9073-460cbd96d3a4","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":97,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"2d6a0881-051c-4070-bc54-9e6aabc6def0","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":97,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"58c7939d-7bc5-4730-a608-b4432376b7f8","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":97,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"4973ae4b-1bab-4b51-b158-a15a4ca4682e","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":97,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"97de6ef2-9ffa-4915-b584-e3757989cc1a","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":97,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"a72c573e-15cb-404d-8be7-f1f57729458f","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":97,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"d52d5ab3-3600-4a49-8404-9791f0757d69","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":97,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"a8899b29-9723-400a-bc78-6e11a5ebd138","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":97,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"d6665bfa-9d4d-4f40-9039-512c578ae231","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":97,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"6b2eb7d9-a82e-4ae8-a842-70edde26ba2d","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":97,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"a0322cee-6c03-46d6-8571-aeb57f3a98e2","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":97,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"693c6f61-6208-47a8-a45b-84c7ab555786","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":97,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"587bd9eb-2c83-433d-8c93-b8f5388ae957","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":97,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"04433dfc-802b-4182-979c-630871d40bd0","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":97,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"cc5af375-b8ad-40c7-b803-f82db6e95abe","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":97,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"7a7a44f1-c423-4131-9c57-f0d4034ea610","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":97,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"32689d64-8a24-403b-9fa8-ed75aa5c352e","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":97,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"7729c95b-6381-4922-82b2-dc60ae1182ff","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":97,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"59a0033c-19a9-4fea-94d5-b3d508b2cbee","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":97,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"67439a08-b957-4b6c-9a0a-8767a3ce19d1","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":97,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"5385a286-4776-4aaa-8fd0-8e3de3f51ffc","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":97,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"9faf0347-583a-4837-88d6-ccc9eff88e4a","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":97,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"c259097f-be06-486a-bf1a-bbf8c49e19a6","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":97,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"0caddbbb-ea34-4196-beca-fa9189d0806d","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":97,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"4c0a35c9-47df-455d-ba78-f628d7999d30","block_type":"box","text":"conditions.","page_number":97,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"b9f844bc-5d52-4f6a-9ff3-bd3f8db09752","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":97,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"a712426b-1425-412f-92bb-645016248871","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":97,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"68e00279-847f-4a94-a8fd-cff0a3176d9c","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":97,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"5716be77-a10f-44d2-9d1d-03bfbbf0d25a","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":97,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"a436ece8-e340-4e44-b26a-70841c680c6b","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":97,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"c1ff2925-22f1-478e-83c0-900debb7ffe2","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":97,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"8b358b58-dcbb-42d3-8d39-77ae4a107b68","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":97,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"cbe70deb-0015-4afe-8c96-7ee00191e371","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":97,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"cbaacc45-701d-4797-a4b0-2bb8865400c0","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":97,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"ff507192-a62a-47b0-a23e-50bf86ceb266","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":97,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"0a1add53-f3ed-4106-a55a-76757d75e278","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":97,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"b753977e-2f9e-46ff-b8c4-24c3b41dfabb","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":97,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"b8015c18-0b70-4541-b051-43ef855a0229","block_type":"box","text":"affected by such events.","page_number":97,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"8bdf63b9-74fc-4553-b771-b4c7db38dc96","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":97,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"d2a8ae9e-4dc6-46bd-92a2-b235dd6bad1b","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":97,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"dad45355-d9c6-460c-9de9-ac3c39a8231b","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":97,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"dac20e79-6924-447f-a833-61911b4bc4f0","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":97,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"d9ee6205-ca18-4e7d-a50b-ecba614f63dd","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":97,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"815ea296-5226-4128-9ce5-3b0e8bae42c3","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":97,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"f44928dc-7c0f-4af9-93e5-f5ff94b3ce5d","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":97,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"77cf9b30-06ac-4916-8b06-268c66b11c3f","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":97,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"802cd6a8-0e19-4098-8409-4d5162f1d673","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":97,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"da7aadd7-9c3e-4320-8da5-6bedb5cf6cdd","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":97,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"b0c5c3d2-34bc-4b92-aaf6-48ab8709b4e4","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":97,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"de769320-98bf-4bcb-b5ff-ba9abad94d43","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":97,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"f11d7c84-527a-407d-a1df-d6264729bb12","block_type":"box","text":"II-67","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e286948-a33d-4397-940f-7208db3c243a","block_type":"box","text":"NM1026U-5978647-97/232","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"677b102b-96c9-4711-a231-caaa46f856b7","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":98,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"1840643c-676d-4793-9669-f42b37af4c47","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":98,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"80603917-da54-4e21-8690-f925d5edffec","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":98,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"80e89831-047a-4264-a4ea-da4a34ec7c9e","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":98,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"a3173c73-e57e-4208-ad60-350c67e4e15f","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":98,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"00679560-11e3-4c94-8b87-984c805cce91","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":98,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"24af7ed1-45a8-4011-8031-f6524abf6e23","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":98,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"d7ed78f8-d8e5-4c21-a6bd-7cf286f5a028","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":98,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"540a676c-91d8-4b4a-8ea5-6547a8d2695d","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":98,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"eabd49e9-b2a2-4ab1-b896-e5df58d1a8cc","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":98,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"4b48ced8-dff1-4f06-8f0c-915017609bda","block_type":"box","text":"investments.","page_number":98,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"e8ca8c73-7411-41eb-964d-b28b095a22ce","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":98,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"d83adbb9-b66e-45c9-b967-f56633bdda45","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":98,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"fad11b06-7137-49c3-ab03-396c776d56db","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":98,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"4a7841e9-dd27-4f68-a531-f8fc8f9a3b10","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":98,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"b0c4f6e0-41a4-48be-875b-bc8933b6fba1","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":98,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"91fd8673-aa6a-4474-b886-0b1429c7c98b","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":98,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"320509b1-f5f0-4f82-b464-5ec2f5e5d756","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":98,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"c60f5686-ced5-4d76-af7b-82732aa54d48","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":98,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"0a0c35ca-bb6d-435d-8f6d-2ebf3e94f237","block_type":"box","text":"Legal and Regulatory Risks.","page_number":98,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"3b191b10-52aa-4dda-82cf-9e6913ef8b40","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":98,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"3804141a-c4b6-4edf-802e-a942b801fb1e","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":98,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"1e184dc5-97c8-42fa-af3c-281f19968167","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":98,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"9da415cc-75dc-4a41-8131-fe985e37028c","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":98,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"70667660-b5bb-4684-af74-f5517412fcfa","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":98,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"57417236-5e96-4e9b-bf0a-62102692e68c","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":98,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"8d1f43ff-5c82-4e25-aa47-bf65f527cef6","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":98,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"648ccc23-9513-47d2-a62b-2c495ba7c0f0","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":98,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"2ec9dd40-21d9-4f51-a239-266cb775bcc4","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":98,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"be1a7689-110f-4564-a295-3a9d16be19fb","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":98,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"55c10fbc-90d9-4c7e-a15d-6fea8b671ac0","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":98,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"fce879db-d8fb-4eda-b586-1ea97d2a077a","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":98,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"cf371abe-7d6a-4f15-97ee-c6e7424726a5","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":98,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"898abd24-7b33-4c37-9046-aa61db76ea81","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":98,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"dbd573a6-fbc4-4de5-b86e-72e54ed24af0","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":98,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"fe3eb5cc-af06-40a0-88b0-3332155bd944","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":98,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"42b9abd0-1516-4b59-8cd9-2145484c344b","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":98,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"2f3562e6-76c6-4ccf-873d-f84e34df3a54","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":98,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"780f6045-d9ac-4208-8fa7-9112e3c4e749","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":98,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"0d049e9f-8cc9-4b67-a946-e42dbeacbee3","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":98,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"bbf7e2eb-33de-46c6-9f19-58be42447ca6","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":98,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"22ffec98-9052-4712-a22f-f7e34f295bad","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":98,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"31debd55-410e-47c3-9986-8c66cd093a98","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":98,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"5015054c-7727-488b-8188-1b4f124e0ffd","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":98,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"f852f299-2545-4cef-919a-10884e10ce10","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":98,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"92ff75ff-c22a-481e-a889-fc8d65dbc228","block_type":"box","text":"Geographic Risks","page_number":98,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"d6b0fb01-688a-4dfd-80d1-a51919cdd207","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":98,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"38eb10da-04e6-4d5b-ad2d-cb6967d91927","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":98,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"c9ecdcb0-4d6e-49a3-8e84-231796f9182b","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":98,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"7ab19014-d312-4ee7-a34b-cb1c8f5d9dd9","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":98,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e118e1f7-2c2d-4300-bdd8-dd8a085118d3","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":98,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"17172177-d965-4731-b1b7-147838c9d2bf","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":98,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"233f888d-b703-4175-8bdc-8bf1c403b0cd","block_type":"box","text":"Fund.","page_number":98,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"a504dbb7-9b4d-4495-b254-75fd36ababdc","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":98,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"afe28513-0831-40fa-9912-3026dd25460b","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":98,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"40a9f349-4857-4dc0-930d-c4813fda6b4c","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":98,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"754f867e-6f0e-4695-8a38-883e45600ccc","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":98,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"cde134f9-a6bd-4832-bcff-7ad3e3547dd8","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":98,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"5d1c07f8-14a6-48df-8725-d5c65db4f3c9","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":98,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"aa61614d-22bb-4c84-8700-4aabb85fce0b","block_type":"box","text":"II-68","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f173f3f5-f342-4666-bdc8-3983097ba87f","block_type":"box","text":"NM1026U-5978647-98/232","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c5464691-0885-410d-bcf9-ac5373bcd551","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":99,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"0ead76fd-fb7c-4fe8-b47d-c5b429ca5e85","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":99,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"bd49999a-f797-4e5f-8733-f6e8b4c95f8e","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":99,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"9a9d6569-9051-4341-b260-161e57172d8e","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":99,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"27996c24-4232-4d54-8018-3480ca560308","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":99,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"74d45878-aca4-403b-b6c5-00627b184890","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":99,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"f2cd5583-e2cb-4e8d-8250-76104f55f5cc","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":99,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"748387ac-04fb-49d0-9500-b4b4595c8865","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":99,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"5308085d-c5ae-47bb-8ebd-0606a78719f8","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":99,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"c77a6aa3-2472-4e70-a3e2-9b85dedd7c29","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":99,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"0a5ea185-4ea5-4f04-8200-bfa73f1b3365","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":99,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"3b75157d-f93a-4bd8-94eb-173e4773800e","block_type":"box","text":"e.g.","page_number":99,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"f1c09ce2-8501-4215-b216-2693e8e53408","block_type":"box","text":", SOFR for","page_number":99,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"07e2ddb5-740e-4205-aba8-88bc2bfe48b4","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":99,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"e06e4978-5bce-496a-852d-b8b3945fb9e9","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":99,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"2573ac9d-9f87-4fbe-b410-77abe998e2ff","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":99,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"b81494f2-8f24-42d8-aa0e-d80bda93d45d","block_type":"box","text":"determined.","page_number":99,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"81df8626-2530-49d0-9b76-267f8c8c3ea6","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":99,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"c75fc8a4-8c01-45da-b2c5-6a5d9912a4d0","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":99,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"a3113626-78ce-4c71-a9ce-7fbdda6b8dad","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":99,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"f680d408-9094-411b-b71c-f3f48e772145","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":99,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"fbdd85c7-44a3-4cca-b03a-37f4a081e87e","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":99,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"946bbc18-474e-4be8-a408-a8f7594006e3","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":99,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"1afc6e37-669a-4ac2-b19c-f50305001e79","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":99,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"7fb1aad2-562c-4414-9c04-b61d6a0c96ee","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":99,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"514e91a6-3b0a-4a0b-b2c2-031992c20b83","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":99,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"556a981c-f60a-4144-ab7f-a53b093ef835","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":99,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"4ed08933-2371-4aae-9f0b-4e5e3c744f22","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":99,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"622a4aeb-1330-4c91-8023-1e76b4c293aa","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":99,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"34a788e6-886f-4210-8173-4fb341ce7507","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":99,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"d90277fd-356a-4cb4-a778-e5553bd0a79a","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":99,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"8ff17dd3-fc5e-43cd-b24a-f01dfbe836e6","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":99,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"edfb0411-d4b6-48bb-ba69-560c3cae1671","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":99,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"af57f5b5-6f05-459d-b4cc-8e9251299948","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":99,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"63732ad3-d251-41f5-8ba9-1b651e734dc4","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":99,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"94ab9126-6941-40b0-a691-5d54671e9701","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":99,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"35be528c-5042-4a8e-a0b8-7cab793e3de5","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":99,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"ec02f1f2-ef6f-4b3e-a33c-196b8260230e","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":99,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"61db7046-351a-4a71-8b82-981768ed0230","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":99,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"327882eb-6554-41ff-b852-f6da272781d5","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":99,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"9f03b3fa-3649-4d0a-9648-0871ef100bed","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":99,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"a38dad66-0a95-4cc3-b4a1-835a56cff163","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":99,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"b09c94da-eb78-4a06-b761-2399107e2236","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":99,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"1f70dc1b-2958-4123-b7a4-f5ca64d0931f","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":99,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"61c7f3d3-624a-407f-9914-7e083f8d1e81","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":99,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"41b8a4e0-0e0c-40cd-a2fd-a8fd92b87e5b","block_type":"box","text":"consequences which cannot be predicted.","page_number":99,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"eb843054-616f-41c5-9d3e-af6016aea904","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":99,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"ac0371c7-d096-4c42-bd47-7f26549710a9","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":99,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"2d0136bf-2c8b-4103-9b14-52895eb43c63","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":99,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"0e26beef-4228-4b6c-9e10-2b4101eef0ec","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":99,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"7e973ba7-1714-4798-a70c-ef663d604aaa","block_type":"box","text":"term of the agreement.","page_number":99,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"684e1363-3dea-49cc-b5fd-ceef619a056f","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":99,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"28caadc2-a4e5-4fa1-a94b-8bf6c08b55db","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":99,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"09cd8fb7-6772-4d94-ad01-925f30c3d025","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":99,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"54e947fc-5c6f-4077-849b-7ca613cfc931","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":99,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"a1a77b14-8493-4ad3-ac18-fe3d72c084f8","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":99,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"f020b5b9-2073-45d8-85dc-7e374ce34dfc","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":99,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"ba24e8b6-e6b9-4895-bddf-9ea60a9757b4","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":99,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"a02f632b-cc8e-4736-bf2b-8e4a997da40b","block_type":"box","text":"II-69","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e12ea7aa-1c5c-41bb-b514-3038fbe8c584","block_type":"box","text":"NM1026U-5978647-99/232","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c92d2cea-08be-413d-89eb-3b341495795d","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":100,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"1574621c-ef6a-4b29-99c6-7542f141d439","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":100,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"cf38441f-3ee6-4106-ab7b-bfa7ea299565","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":100,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"8abd9146-fe44-4b49-90b2-10cbb28847a4","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":100,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"a29d1836-74fc-4bea-a226-46999c232c35","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":100,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"fc111916-14b3-42dd-8564-58f4fdf0a5a0","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":100,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"8ff25bd1-9309-4261-b52e-140894ea5774","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":100,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"5af839ae-eef7-4126-b7a9-4df886e49ed5","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":100,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"4a2e57da-e965-4585-923f-af6614ccd039","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":100,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"afddfe09-085b-445e-817d-90d084cde0d5","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":100,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"c204b916-98e8-4f2b-bcb8-18141a95ab37","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":100,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"9a87968a-32f8-450c-8659-3d62b6fba668","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":100,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"97c0f118-2e9f-4557-8e4d-6923f2c78da9","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":100,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"26811b58-bad1-44ef-b26a-4100eaac9e16","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":100,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"60c56bda-facf-46cd-a723-49897b9d4a7d","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":100,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"63ebca81-9219-4d48-a6eb-a9333813d3e9","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":100,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"aeeedb02-c1ef-4ebc-aea6-19c8df38ca8e","block_type":"box","text":"or by another authorized securities depository.","page_number":100,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"040e375e-cc4a-4a8f-8939-c946cbe33d5a","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":100,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"946d6c76-f05c-4461-aada-37133f400970","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":100,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"b942a9b8-190a-41da-be41-e70086ce8657","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":100,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"67533daf-7d51-4c71-ab00-df0076ca9813","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":100,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"c012e822-80cf-42e8-9362-852bb6d8c124","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":100,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"96a9e483-5d02-44c3-9ede-c1b2feb57d83","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":100,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"3f8cbedd-4618-476f-b7ce-ab92e9826cb3","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":100,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"f8fa257e-98ae-4204-bd1a-b0c10d5deb1f","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":100,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"6bca041c-3639-467a-8895-151d285bd44e","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":100,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"0bab7e79-86d6-42b8-b316-575b6a53c8df","block_type":"box","text":"the repurchase price.","page_number":100,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"843ca5d3-44c5-4745-88a9-499061685751","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":100,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"55729f0b-dc5d-4508-9c9f-32e41b9d20fa","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":100,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"aaec6083-4ae5-4df1-899f-04f135e7ee99","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":100,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"1bbfd092-d793-43c1-a54e-21ad1d49f339","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":100,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"afe513ae-faa8-45ff-b933-726351ecfd43","block_type":"box","text":"strategies without the repurchase obligation.","page_number":100,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"29e1edd6-a8ac-438f-b458-56ef22306c08","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":100,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"033064e5-6a52-41fc-a967-f1ba1ef0a471","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":100,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"20719353-28a4-4a9a-a466-2505764ae2d9","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":100,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"b226e033-2ed0-4c1b-9d80-81fba842bb85","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":100,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"c64088ab-7891-40c5-845b-e46deb2708c6","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":100,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"9034f37a-58e0-46ca-8bd7-1acad0b31ba2","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":100,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"a8f24fa5-2787-45bb-96d2-aabb0ac53001","block_type":"box","text":"i.e.","page_number":100,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"2e4e70d8-65d4-4139-8ff2-27ff69aa5e7c","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":100,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"f5b1d389-0464-4e09-9ec5-4555e7d4ceae","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":100,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"be6ae467-6181-4537-85b8-a965ac780ab9","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":100,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"d76730ee-3f57-4212-8494-976f7ed33de9","block_type":"box","text":"and income involved in the transaction.","page_number":100,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"d8bdf551-80d2-46da-98a0-afce5e3130b0","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":100,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"7f44ac8f-cc50-4559-bba5-3abfbde59f9d","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":100,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"9b18c552-576d-4437-933d-7f39d790ff89","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":100,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"cab57ec4-0480-45b1-8555-26a7354435fa","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":100,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"9fe850b9-2bf9-4e71-bab8-6b895de20af0","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":100,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"7c57980d-61bd-43c8-85ee-14fc3879440e","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":100,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"d10136f0-c787-4b8d-8aab-3141c760bb55","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":100,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"665b9a2f-042a-4661-8296-71f9af4a16e6","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":100,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"d795946c-4621-4ebe-9200-1f9d37aae193","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":100,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"3d02746b-4de1-4db2-9b36-86c6a80a00f0","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":100,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"31a6e08e-c18c-4931-b652-e1de4aa51da3","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":100,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"599ef76f-088d-4962-a271-8b340f5f42fa","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":100,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"8bc3ab48-0b9e-4c40-b951-ceb7eb9f73f2","block_type":"box","text":"Restricted Securities.","page_number":100,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"8ed94c7a-4327-4549-a889-1b3ad3d97d1a","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":100,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"bda8b271-827b-4d2a-8b7a-66fdf6580083","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":100,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"5518b468-c6de-49e1-986f-aad3bc273175","block_type":"box","text":"II-70","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63341490-d3e6-4d65-8bf9-9a281a914ca7","block_type":"box","text":"NM1026U-5978647-100/232","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"548397ad-c3ad-4914-a4cd-ecbe32e63d4f","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":101,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"b19cdd01-cb17-47f1-a473-8ef0fa803404","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":101,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"9160aef5-2560-4765-aa38-95ded95d514f","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":101,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"82d6e0e9-971b-4be1-be45-d794c1dbb7a1","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":101,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"7f5e3abf-9046-4511-8ead-986cf4108508","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":101,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"8a739c40-b3dc-4e95-b006-b7a40ff6b65a","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":101,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"311b3bda-77e1-4182-9f40-92b677ecd246","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":101,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"c68b17ef-56bf-4018-8abc-afa5403111e1","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":101,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"bed569cd-c7f0-4182-80b6-021459cb2ede","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":101,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"3b36f9bb-3c81-4f94-879a-5a802ac43223","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":101,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"d27659dd-d2c5-40d8-bb09-a3b2e183e180","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":101,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"c92a06ed-39b3-4ddd-aa12-236a451dd1bf","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":101,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"cf3774f2-b2a2-4da2-ad37-291600eeb560","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":101,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"8dbc042a-d388-48bc-9a78-231204703b70","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":101,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"efa88b89-be21-488d-9905-537683756dec","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":101,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"a29fbbd1-4abd-4804-9e82-230dc25415c6","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":101,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"8fb11c87-2ee0-497d-9fef-50a172b68945","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":101,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"003c0e17-aa7d-48b7-913c-a1588626fc4a","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":101,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"301028b0-f2a7-464a-a9cd-0a883ddabc23","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":101,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"0d4c6f68-b63f-444c-8eac-092d3841e7f1","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":101,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"26d8b587-9f73-434d-8056-170e6f093403","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":101,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"fb998a10-ec26-4d80-8aff-38e1c7ad839d","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":101,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"a13c6270-8619-4990-b173-e712d7723c55","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":101,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"933b9f1b-4b00-46ec-ae9b-d92148ee603e","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":101,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"b21bb8ca-f33e-4d58-8950-a1484640c10e","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":101,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"351b59b5-ca83-4031-b44b-078756e68bb7","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":101,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"a106abe4-6448-4ffa-97d9-88762fb36f7a","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":101,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"d6bbed2e-5b08-4237-a69f-1e977dddc639","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":101,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"8274f0fa-71e2-433e-846a-bfd959f4dd09","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":101,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"0c3302a4-e67c-48b9-b741-a1f0c40c72df","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":101,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"ab34caa9-09b4-4cb9-8b16-ae439c6fb288","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":101,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"47f8d044-e7ef-4b2b-b080-d423e88b2218","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":101,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"19c9f3e8-5ea6-4532-b824-b480510c63ed","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":101,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"d405b248-bedb-430c-aba2-01fe74d48bae","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":101,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"e7607467-bf74-4a30-8989-616a179e63d2","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":101,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"9c646eb8-4559-4349-99bd-8bfb8ef3f92e","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":101,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"969dd878-6630-4ef8-815b-742841082707","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":101,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"23f8ced0-81a9-4998-afc5-53d7485244ba","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":101,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"047b210d-e986-45e8-839c-b1add0c3a1f3","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":101,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"2bd0be58-8301-4a03-891c-7354ec8644aa","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":101,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"9ec45fa1-4418-4616-80a2-14355c96f07c","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":101,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"304f595d-8eeb-4c36-9b87-f7b03274f44e","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":101,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"700056ba-7830-4a5f-ba49-9465de9618c7","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":101,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"ae582f90-647d-4039-a972-fa5fa137d139","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":101,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"d6770059-894e-4193-b6b3-6b8465b011c5","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":101,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"287eb689-aadf-4e27-be44-b4706042af45","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":101,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"2efe119f-e854-40b4-8cf5-054aa84ca9d8","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":101,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"41a75362-1024-4707-a717-473d7c925e54","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":101,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"e4226566-6019-42ed-8e55-1192289c3995","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":101,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"7bba7648-44a6-47d7-aaf3-7fa892dae909","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":101,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"31a862e3-2fa1-484a-98c6-3a44278a4271","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":101,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"5e8f460f-84e5-4276-9a48-47ea4431539a","block_type":"box","text":"especially as that Fund grows in size.","page_number":101,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"cdf5142f-5212-4856-9bbf-57cd7a2d8865","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":101,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"03078cdf-45f7-4e0c-8fb6-646563b87f12","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":101,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"c0885b2a-133a-453c-8462-e1806b854695","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":101,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"e583ff61-cc9f-49ed-8210-de52a4147ba2","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":101,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"9a1b7064-5515-4bd4-96bf-5d78be709bb6","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":101,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"4db5386e-a786-4700-b164-310a4f521917","block_type":"box","text":"II-71","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58d0bac3-5180-4670-a752-ff3145d0a5eb","block_type":"box","text":"NM1026U-5978647-101/232","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ca572ece-8b70-4719-b87b-190de8f45dea","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":102,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"8d1d1185-3bea-4873-bbef-fae4ba8a8a3f","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":102,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"d2312ab8-2cd4-4cdd-8699-e0a243a2d450","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":102,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"d42e7b05-12c2-4dd5-ab52-45897d66acd7","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":102,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"c80ff9b0-5634-4198-8010-e0da0bb6f2e6","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":102,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"44e24650-4f17-477e-a6b0-b4900a5ac9ed","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":102,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"e605964c-54a1-4875-b0cc-19265074c4b9","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":102,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"fa371822-5fdc-4e52-83d1-5ccd7d20b0af","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":102,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"7a72a410-ef29-4872-968c-4cce66d5d033","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":102,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"70790997-6532-4a03-a98d-d0a25f2e2202","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":102,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"d05c66a1-d82d-4565-ae45-0bd261ce02ae","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":102,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"fac05bfc-5ce1-4d19-865f-8f76138e9e1a","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":102,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"153d2ebe-51fa-4e6e-abee-a711b3581fd1","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":102,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"d1cf85b6-0e32-45e2-bae1-db9812d3d8a6","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":102,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"85dcd712-5124-4c59-b03c-d8ef80896500","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":102,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"a3f75ab6-3308-41e6-9824-1f6d0584f076","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":102,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"629566fb-0535-40d1-98ab-b99b141132f3","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":102,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"4e6b0bfb-9ec1-4bd8-ab77-764c26426a49","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":102,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"c3a877b4-3820-4923-b3cb-7c418e9b89b1","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":102,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"103a1e27-ed6b-46f7-9328-25b1b61656e7","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":102,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"aeade414-5bb3-4521-b06e-a48cb60baa2d","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":102,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"895ad3cd-5969-49a1-bee2-0e8fb5040087","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":102,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"fe49cccc-7eea-420d-b8ff-bccbd716c10e","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":102,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"c18af686-79b0-4f6f-aaf2-6411365cb036","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":102,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"b4c63487-b8ce-433a-b763-3ba20e956c76","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":102,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"44dd8dfb-3236-4c81-b7e6-9686952fd18b","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":102,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"400198e0-c095-4ad5-84a5-b64b0d508a8e","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":102,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"20059287-c7ae-424c-86b7-0d23121f6d53","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":102,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"c0ad9c30-58bd-4638-8d21-671471fe917c","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":102,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"ad8653ad-fbd2-4acb-8bf8-ced0df2b937a","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":102,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"4c9f5e5a-00f1-4aaa-b591-fd3928386b63","block_type":"box","text":"similar financing transactions (","page_number":102,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"018248fe-f4fd-4bca-a4ab-9f9b4e35b11b","block_type":"box","text":"e.g.","page_number":102,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"c3937643-72b8-4df9-88ff-3df5b5df6413","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":102,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"69aa55d2-dc2c-483f-8cf6-b0a1127a18be","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":102,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"dd8575f2-9746-4ba6-a7f9-f91156427469","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":102,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"982cd45d-c39d-4be3-a2aa-feaef535f2fd","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":102,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"18bd5f99-f659-45e3-b488-6e0480882bd6","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":102,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"7b23c41e-310d-40ba-87ff-025a19591de1","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":102,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"67daf00b-c95b-48e4-8e55-7ae5cee41c7a","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":102,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"0939c341-a538-4afb-8aa9-276cc493f523","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":102,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"749df5a5-d0ed-4841-9ed9-3bd9ac5ba076","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":102,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"f3acd82d-5e9c-4262-ae1e-e3e7277a60a8","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":102,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"e84d5dd9-e1df-499a-8fae-2b87bc0b5d61","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":102,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"8a47fa65-34f6-4656-9ecb-0216e36e18bc","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":102,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"dae67fbd-fadc-4102-bc28-85f198f28ec4","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":102,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"41ea241b-2cc9-4e62-9de5-ce6cf6af22b1","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":102,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"24f3c279-dfb7-41b0-a826-03a7767cea13","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":102,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"3f4175bb-9933-4cb1-a732-8ecf76030145","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":102,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"790a3481-b4ee-477b-8356-04b35072fdd9","block_type":"box","text":"amounts to be received under such agreements.","page_number":102,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"0fa73857-fa3c-4e08-af5e-8b287d35cdcf","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":102,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"aefeb124-266f-43d8-a019-195980f87ca9","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":102,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"96f39f2f-e4dc-4174-9a7c-cbf67bae8f5e","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":102,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"b91bd5a6-d8fb-404f-bf7a-de4646dfc2eb","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":102,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"49522968-f521-4196-ad6b-432de4d17c73","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":102,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"434db601-5a93-46aa-9c25-a6ec53c51086","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":102,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"b79edd21-3b71-4d93-83ac-cfb0f89caa41","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":102,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"a1103314-bd20-47fc-a41c-1b790c78dd75","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":102,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"4b123170-5737-4b43-9c47-81f3903246de","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":102,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"b357aeb8-e062-4276-86ce-847533e3fc9f","block_type":"box","text":"II-72","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a66e3894-c23c-440f-9730-e36e17a1bc92","block_type":"box","text":"NM1026U-5978647-102/232","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c16f2e0c-5833-4c45-9c07-6e068d635a42","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":103,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"a366ecda-d98a-4071-8d75-984d09bbf4c3","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":103,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"41aac921-1dd3-418c-8a66-4a93e9de4c44","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":103,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"d434c011-193a-441b-ba8d-5fd5292d850a","block_type":"box","text":"Rule 144A Securities.","page_number":103,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"88a4b1d0-8ec1-486c-bdec-2435f7fba680","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":103,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"4bf8047d-2d62-4098-b6c4-ce13eebcec9c","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":103,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"affc174e-1fe8-4daa-b4f6-6f83a56919ca","block_type":"box","text":"Securities Lending.","page_number":103,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"a7ac9d95-ca8e-46cf-9475-ec4b6bc5d98d","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":103,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"4872bfcf-a866-4640-b754-56a8580cae14","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":103,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"f5bd0f1e-4b3f-44f2-b609-f31325b5296c","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":103,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"f12692b7-eefa-4af4-8296-219e914d7cec","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":103,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"c36b7bd3-79f8-4cc4-a03c-9637bdcce37a","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":103,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"876b48b8-ca16-476d-add6-85906cdd24ed","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":103,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"3597ea3e-5ae7-4367-8fe2-38b839c6a627","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":103,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"e4f52c89-d804-43c2-a2ff-6e9a17e9457d","block_type":"box","text":"the securities were not on loan.","page_number":103,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"b35f4a5b-6782-4f91-838a-e14feacd476a","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":103,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"2838568b-e0bb-4064-bb2a-9498df0516c8","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":103,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"adde3dc4-8a80-4649-9db7-948d1eca6371","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":103,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"1cf38245-2215-499f-93c9-0de77797b557","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":103,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"bf97f448-95ed-489b-9e18-d5988e7fb2b6","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":103,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"2ef21297-1954-4df2-91d7-c30d11e82345","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":103,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"923fa48d-7d98-4005-a7fe-b3e2a2fc1e8e","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":103,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"4d927f60-9c54-4670-9540-8ff11a1ed7de","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":103,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"7da56670-a3d7-4678-877f-6b27fcc6f31c","block_type":"box","text":"i.e.","page_number":103,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"4392c1bf-d547-4019-b924-28111bedd11c","block_type":"box","text":", the risk of losses resulting","page_number":103,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"49043ac8-4341-4fb3-8980-0727fceff491","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":103,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"62e8a0b3-9f6b-41f7-ae9a-7057a3706a6c","block_type":"box","text":"i.e.","page_number":103,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"7f474070-84a6-4474-a401-b52b119900b5","block_type":"box","text":", the risk of a mismatch between the return","page_number":103,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"155eceb3-3690-48c0-a555-e737629d1b63","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":103,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"1ef977db-0a2c-4ddb-ae8f-516b8852dfa2","block_type":"box","text":"i.e.","page_number":103,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"180c4067-1aa5-4e97-a167-433282b8f59f","block_type":"box","text":",","page_number":103,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"e830714e-fb32-44c9-9405-d33d1b1d8c8b","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":103,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"22431315-bda6-44d3-8c4c-a72e304ac849","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":103,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"f36af921-0520-47fd-adf7-0c8a53ca8df3","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":103,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"16d0549c-6b8a-400b-962e-eb7ffb7c3b7f","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":103,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"d2c304f8-c4ef-4987-86dd-a8fc7c9b6ca1","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":103,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"6bb993f0-01c3-4084-b095-38007b05cfa7","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":103,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"9aab613c-5274-468a-93bc-a2676e80775d","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":103,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"19bfc2a2-d490-42fe-b080-cf73dfe07a21","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":103,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"56218f94-69aa-4aeb-921e-5d16d15b9048","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":103,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"6c67abc7-ee63-42e0-b646-a5b088605dfb","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":103,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"bdb1bf7a-b463-4c4b-a44a-d51da151c9a7","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":103,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"b20d41a9-99ba-4d02-8521-15bc89d115d4","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":103,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"1ced9f9b-1504-43b4-9378-4b744e82e26c","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":103,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"7837b90a-0a46-4cf2-b480-de320053c715","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":103,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"f3c29e08-c146-4e10-a1c1-75e86cd79178","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":103,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"1197d639-2234-498b-8ae5-9cbcb48a1447","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":103,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"803b83f4-1a16-4e39-9f76-ba557776bb62","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":103,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"c6b2caa1-6a2a-4803-9724-5a6453aa5f92","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":103,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"b4d4a581-178a-4401-ab7a-38b72959127f","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":103,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"3e478fa2-1d81-4788-a5e4-5b298e39244b","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":103,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"6f769171-d295-4e12-88d6-11ccbd83ccc9","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":103,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"f24d3c50-7e80-4f65-b4be-21e0d5f2a54e","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":103,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"7022e71b-422b-4a59-aada-4a455dd7dd7b","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":103,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"3d890373-02de-4907-a060-1b5f2b94b524","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":103,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"52d4be3a-7e60-48f9-aecf-43e11b1755ea","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":103,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"ceeb42bc-1273-46b8-afb7-e622d64b9645","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":103,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"40897884-7ff1-4eeb-8c0e-ef755ab3fea2","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":103,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"075520c5-e263-42b1-b111-53506bc00fd4","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":103,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"6b7560ea-a324-4a97-9e90-fedac2fc1fa8","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":103,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"6b0a1c87-56a6-464b-be73-dde354c397db","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":103,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"75cdc4a7-04c7-4150-93ae-65cf9def98e9","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":103,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"acad0fce-d027-46c1-90cd-900b3ec7511c","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":103,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"46f7be68-ee00-4e2f-8240-c9ca044b92c1","block_type":"box","text":"II-73","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"37c3bd92-d054-4f2f-be3d-54c85e9236d4","block_type":"box","text":"NM1026U-5978647-103/232","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9307dedd-7157-48bf-81f7-a3774a924c96","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":104,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"ed0e54f8-07a4-47ca-8042-67da727ef70b","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":104,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"17989b72-dedf-4ecb-9107-80fec7b56881","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":104,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"6d0c7a3c-805e-47cb-8ac0-633706f7fa07","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":104,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"67cea8aa-5b01-45e1-9eb7-95c9fee9725d","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":104,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"ffc30703-63f5-4a6b-ac62-7eda2e4702ee","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":104,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"21070763-8682-476a-9da1-82360dfc8e85","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":104,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"00a411d4-839c-4084-a7a0-c2edbe384477","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":104,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"95430e64-b2e8-40a5-94ac-28fa8108c7ce","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":104,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"08ad0c95-b311-46d2-a95a-aed66e36fd02","block_type":"box","text":"the current expected compliance date.","page_number":104,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"0aa89e10-7166-4f8f-a014-33254f2d0b93","block_type":"box","text":"Short Sales.","page_number":104,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"8e8643ff-bff9-439f-82eb-531ab45b2331","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":104,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"6e97278f-3968-46b1-8113-e73f9130a487","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":104,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"442a0891-815f-4e0a-b4ca-5401379f2e9a","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":104,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"0750e888-d185-4811-9b34-d81c9d5ce5a3","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":104,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"25555326-972e-4470-a4be-682a5eb93552","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":104,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"af117d87-3b63-403e-939e-8fb431098331","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":104,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"a922f256-3ab4-4588-8489-56184d101314","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":104,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"e86dd834-fe90-42bb-83b4-13c5a9bb1ea4","block_type":"box","text":"securities to the lender of the securities.","page_number":104,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"6e08b3de-74c6-4d10-be1e-6fefa0accbb9","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":104,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"42671c24-d8c0-4432-a7b6-abf659efed0d","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":104,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"3468fa92-cb65-4c63-9221-b9e1f8672d21","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":104,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"55edbd6f-1ea5-4ca8-a4cd-1fc7a687fed1","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":104,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"81e4d169-7845-43d9-8c65-33411f7988bd","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":104,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"cb810f26-2771-4dfd-a882-4ba6724a7fce","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":104,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"329549f2-3500-46cf-8f5e-c712b1d5d4c6","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":104,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"8dfb5bf7-58f4-471a-8522-bf9a5a43d8b2","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":104,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"4f1d09d1-c678-40b1-96f3-a1363b279b0c","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":104,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"42a544ae-aefb-4a8f-b754-92b097b62d5b","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":104,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"ab9c69f4-40df-4b6a-af88-aacaf6f9d743","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":104,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"7a8bd35f-f7ec-4aba-8ceb-b2a00ed31225","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":104,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"ba97f4f7-b240-40a0-b0d9-98965ad8034f","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":104,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"8b502325-91a1-4cd9-beb8-b6df352dea3f","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":104,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"ab76da16-4b29-48af-8fb3-01a9fd99fd24","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":104,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"83f34715-11f8-4fba-b010-4693aeb3fc78","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":104,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"5de4bd25-0d28-4fc3-96a5-df62c6512086","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":104,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"9250025f-ebcd-4940-b14a-e60c3db61f65","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":104,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"2af5bc13-c655-4115-8a10-6447dc094c7d","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":104,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"f04bce00-eaac-4d35-bcdf-6ebe3e6a0444","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":104,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"9bca2de8-caa2-4983-a189-63229e3a0355","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":104,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"68a37725-7499-4087-85bf-9e055244e42c","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":104,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"9d3da0f0-79da-4153-ba66-373ab221f314","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":104,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"31850446-591a-43d9-b9d4-8bbf70e66b53","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":104,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"b75f053d-bd01-4b08-820d-8c5e81b934ff","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":104,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"07a4fe61-4690-4dac-98d4-8e29fe30b1d9","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":104,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"07f9f822-818a-43c2-bdaa-82f2b99318a3","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":104,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"79dddca1-5879-4159-8f12-49b0ba8802d3","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":104,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"92655b9f-9e62-4089-910c-1a60421f153a","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":104,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"23754d4d-4226-4e31-8117-e2158893b5f4","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":104,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"cec778a4-1c4d-450a-89dc-87119355138e","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":104,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"f0447909-0f8d-4c3e-b8cb-4d02dde3a3c6","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":104,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"ddc6224d-6032-4b24-b751-6e969cbf7e0a","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":104,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"33dba747-8175-4c46-b41c-5aa1d36c29e1","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":104,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"fe766145-4b6b-4aca-9c75-b2b0c6599feb","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":104,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"a2038ca9-2eba-4284-9e54-edb2c63116f2","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":104,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"2b9a152d-1def-490f-8cfb-7fbc06ae6b76","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":104,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"961b120e-2052-47c1-8a0e-c634e0ea018c","block_type":"box","text":"II-74","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2fa88181-d806-48cc-a0c1-fa59c4b88d37","block_type":"box","text":"NM1026U-5978647-104/232","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ff5f712d-d092-4361-9eca-50faaecd1fcf","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":105,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"f2ef248f-750a-4b9c-a758-9524a27f972c","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":105,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"059574e9-99e2-4b23-be0e-596aa4dd40a2","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":105,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"813ef2a1-0dcc-4361-bcbc-2cc35a43a405","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":105,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"aedbc2fd-6bba-49b4-9400-7fbeb72f529a","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":105,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"821947bf-b2f1-4c94-9975-5d3ae2483dd3","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":105,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"fcba2a89-19fc-4acd-bb79-860636a5ad4b","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":105,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"67729239-43c3-43ca-b47c-49e388fc0603","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":105,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"1f5f62c4-fbc7-4ff4-b94f-788dcffffcc5","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":105,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"68fd0305-5d6c-49e5-8e4c-9ae3c6808424","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":105,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"303cda28-277e-43e0-a820-c881a3185f34","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":105,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"ddc44c50-815d-452d-88bf-87c8ff9afab0","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":105,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"8d151746-5f2e-459c-bc1d-d8b42edc28ff","block_type":"box","text":"Standby Commitment Agreements.","page_number":105,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"f02ab3da-3d8e-4e49-b831-b3f724c31056","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":105,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"f0983e71-8936-4e34-ab9f-98d3cca3ed77","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":105,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"96804492-b60f-4193-b5d0-c0b00aed686b","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":105,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"12a88aac-7ec2-46c6-bddf-557648df5479","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":105,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"78a7d90a-8c85-4800-afe6-6f7a5970b9b6","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":105,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"c06a11a8-8791-4799-a3a1-720dee522d85","block_type":"box","text":"advantageous to the Fund.","page_number":105,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"91483c93-edd0-447c-8794-22e18d7003e5","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":105,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"8799b001-1e5e-470d-85d5-f9392d14b3b5","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":105,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"f58f64af-9684-4719-ba0d-0f81b01ab868","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":105,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"7c7f807f-d6dd-4f1a-9f73-4c34da88d85d","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":105,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"bf62534c-2428-4ff8-a2f0-801efcba952d","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":105,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"6c76b363-8c6d-4627-944f-d7ef2bff906e","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":105,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"5de7725a-edb3-487a-aaf5-c0fe792b1a8b","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":105,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"5cbc04b2-bd40-488a-bf47-edca660c528a","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":105,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"7cc06980-6e69-49bc-af83-03b5189c547b","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":105,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"d4ba100a-7f0f-4deb-840b-6c40a9b5ec06","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":105,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"0d2c71fe-010c-4abb-b8f8-9924334c88ac","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":105,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"d5948188-6f62-4e82-adab-d3d4d414441e","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":105,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"346ff9b1-91b8-401b-9ed8-890a98731c7a","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":105,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"c7633073-6c1b-454f-9842-9bd492a6af6c","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":105,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"de095d1a-ef26-4c9b-94d8-caacf8b30d16","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":105,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"0fddc907-388d-490a-8c33-fdca8a165c5a","block_type":"box","text":"Stripped Securities.","page_number":105,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"a74ce60f-d256-4a2b-8ae9-34c37870aa5b","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":105,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"22df1f47-4748-461a-8eb7-448cf34d0ff2","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":105,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"da68fcea-43f3-4aea-a859-6ec2e0bf6191","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":105,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"0ba3935b-4e72-43e5-b89e-32a11547d758","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":105,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"799426c7-597c-49da-ad4c-4c8e45d1129e","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":105,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"8c2bf4f3-18b9-4238-a5db-79efa0005003","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":105,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"dd481253-cfcf-4be5-b93a-7f062463d556","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":105,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"03812ff9-dc09-4a45-9a63-245f2ca99498","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":105,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"e411d5be-6dca-41a7-a602-ed7405f54cb5","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":105,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"a28d86e3-adcf-4261-aace-5c3fc3580ff3","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":105,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"1855f722-6328-4e4c-b267-2f58ccd51875","block_type":"box","text":"Structured Notes.","page_number":105,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"c3c57190-bbd6-4d47-b5ef-76c8e08ffd08","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":105,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"ed84b33e-4f19-4958-8dd6-a61dfe4d8389","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":105,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"c2c66e90-5fd4-431b-8076-c81c826b8e16","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":105,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"dc64fa6e-ff81-4745-a2c2-9d40017ecaad","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":105,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"26549e08-adca-4653-9a74-3cabebdddc17","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":105,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"0b2b0d85-de0b-4a8d-b337-c4804100dc09","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":105,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"3aff947e-6fda-43b3-b210-d9505954a512","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":105,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"f3510bd1-7f2b-4a2d-8a5e-8e523670dda8","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":105,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"27227532-cd5c-4a76-b8c5-aa5f3695b311","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":105,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"adf6db95-8376-4e99-bc5f-02c1570c8a9c","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":105,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"efdca506-5196-4dee-8de2-32aa8c754b13","block_type":"box","text":"II-75","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb355db9-ed14-4d66-91ba-50c20e23f1ad","block_type":"box","text":"NM1026U-5978647-105/232","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"621e1360-a6ca-46cb-a9d3-2a80a37d9837","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":106,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"39e3044c-af6f-45fb-b2b7-86337172f700","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":106,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"21226aaa-7e51-4eaa-b013-74c22bdc70b5","block_type":"box","text":"the risk of loss.","page_number":106,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"a8d7d313-53a9-4373-93be-adae4837b353","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":106,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"0ee5dc58-64d8-4695-bc60-96095348f13f","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":106,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"df0717c6-a0a0-4c1d-ab72-6851d07c766d","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":106,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"5355eab9-cae9-42f9-a43d-42e71aaa93a6","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":106,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"3d154c82-47ef-4969-b034-9344c6d835b4","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":106,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"e878c18b-1103-4757-8733-ec381f53203c","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":106,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"75810408-4031-4b82-a6ad-9829c505ff92","block_type":"box","text":"Taxability Risk.","page_number":106,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"d9ffe6f5-eef5-423f-8a2e-042ed0928700","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":106,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"27c7a79e-16ff-444e-8faa-7a828d49518f","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":106,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"f7eec9ca-3e3c-48f2-a0e4-5bf70244d566","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":106,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"b0ea7543-1d2a-46ad-ad3b-97cf0df3f1fc","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":106,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"0e2ab81b-7269-4c01-9a0a-6aef7290a9b8","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":106,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"ec085188-24e7-4151-978d-be8075ef90a1","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":106,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"a01fc61e-1f30-452e-90cf-2c97c4935e36","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":106,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"4c98b3ec-cf79-4ad9-a03f-a6dce1882f76","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":106,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"68c0e4d5-a831-4b18-b7a4-536c3f3730bb","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":106,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"5b2065a1-1e5c-4a70-85f8-872a5a1d30d9","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":106,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"57d92002-3db4-4d53-9cb5-5ad7d18819de","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":106,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"de0af298-040c-4e93-80ef-dd812caf3091","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":106,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"484e168a-719f-4e9e-883a-db79a2881ebb","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":106,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"409fee96-59c0-4d95-8158-e67f3aac9a5b","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":106,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"be6e5b05-45f2-44e2-b328-85508d913e13","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":106,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"e404cfe4-35aa-4e00-9fc4-3d473cefd1be","block_type":"box","text":"the value of an investment in the Fund.","page_number":106,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"f17b409e-a524-4759-9436-d0fbd9f92dc1","block_type":"box","text":"Temporary Defensive Measures.","page_number":106,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"49fcff3c-e767-4657-b581-cbe4ea85c6db","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":106,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"724f0c26-c789-4dfa-8daf-a69d694721c8","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":106,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"c22809f1-9c7e-467b-8eee-8b1e3abbfa8d","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":106,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"ac998516-1583-4b27-907a-6d28d6d1a45f","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":106,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"f34e3a9f-d44e-4146-8e36-658acca3df08","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":106,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"3592ba0a-0cc8-4825-8989-dacafe6a8226","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":106,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"ec27dd4f-a48f-46d6-b85a-74b35265a2f0","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":106,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"c331647c-c2ec-40ea-adab-d5a6e980eb13","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":106,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"9c5d65cb-8474-4c71-a548-f4cc506b37f2","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":106,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"80e5b1f1-4d24-4e1b-97a2-e43178f6969d","block_type":"box","text":"its investment objective.","page_number":106,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"dd6471cf-655f-4f70-a5d7-b82f9b987241","block_type":"box","text":"U.S. Government Obligations.","page_number":106,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"d5fe94ad-1ccb-4d75-b862-16fc8901a341","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":106,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"83605c70-20af-48eb-9d5f-2d8d3700d242","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":106,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"3fc3343a-5c9c-494e-b68b-29eed3389f19","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":106,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"7d9af0f2-3d72-4471-84be-e6aa9c1cff00","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":106,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"33d199ec-c022-42db-97b8-1e62762c674f","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":106,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"666399be-bf16-467e-9839-1954147b6eea","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":106,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"d2aaddfe-51fa-4509-a275-850c1c46514e","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":106,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"7ea115eb-a8fa-4e97-90d3-a7ac7c216e62","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":106,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"43ce8613-e363-4f48-aa4b-c4f31344cfef","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":106,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"90cbae05-ab1c-4b90-ab7c-ddb67839c1d4","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":106,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"f945d4db-4299-4a13-bad4-42854e8f3212","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":106,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"7c2e3562-341c-4c2c-ba25-d4ee9da09b07","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":106,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"8441a359-693a-4571-8941-6d55920b6fcc","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":106,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"a339e31b-f372-4a47-9236-889a02423f97","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":106,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"16ee4814-4f7d-4974-a903-0bf205cf47cf","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":106,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"5da1944a-c55d-4070-bf5b-a31a88878ec6","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":106,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"f4d3172a-6783-4814-bbba-42158594d1f8","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":106,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"2a6f874c-f62c-4d4e-bf94-932065f064bf","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":106,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"fdc45a45-bcb2-4488-92c0-76a0cf376c64","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":106,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"41bf646f-0a52-4f28-94bd-74fcc80e27e3","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":106,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"32261c21-9ad9-409b-b407-a80fd89566f5","block_type":"box","text":"II-76","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22cc751c-3bee-45be-a481-1e337be9f812","block_type":"box","text":"NM1026U-5978647-106/232","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"674a8d5c-2845-46b9-a005-c502311dabd0","block_type":"box","text":"U.S. Treasury Obligations.","page_number":107,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"652bd944-e4c2-4333-8379-a3d9419d7fdb","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":107,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"7843e959-932b-4519-98a5-544a295b123b","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":107,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"6db9bced-19e5-4016-bd09-b6774ffe8fd0","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":107,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"3605dc34-633f-4c62-ae37-55031d2b0de6","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":107,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"5b1e4e28-73db-464a-ab3d-1e3f211d06aa","block_type":"box","text":"do so.","page_number":107,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"947a1050-cb46-4429-97e7-c4f2bcdc7da5","block_type":"box","text":"U.S. Treasury Rolls","page_number":107,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"a72ff38d-b8e2-4393-bbed-f4eddba2e829","block_type":"box","text":".","page_number":107,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"2727a25b-f94c-4f2a-a2dc-3aecf9442a14","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":107,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"c330b311-ab56-4b4a-a176-37ce43ed4445","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":107,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"1f0b4300-67c4-41e5-9582-dfda5ad0415e","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":107,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"06c54c04-bec5-4899-b91f-73c0db921a26","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":107,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"4a75e058-cc1c-4082-bd89-4fde360c54b9","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":107,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"9f3938b1-c85f-4c64-9f11-0dffe47534cf","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":107,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"bfafa109-e7c7-4a71-acff-75c2351e889f","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":107,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"5a073511-721f-4440-b5db-250f9831ff18","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":107,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"6cc4e89b-aed7-46c5-9c06-2015144a2226","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":107,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"d87a57f2-563d-4da2-9191-79e69afa0a79","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":107,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"d8459426-8b6b-46a9-a740-e08652d56fe1","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":107,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"86cc2e53-2d52-4d59-b4bc-48d044beb3a8","block_type":"box","text":"Utility Industries.","page_number":107,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"a7eab4cb-548c-45da-9cb9-b227b7ac5b1b","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":107,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"31ec1529-37bb-41e0-aafb-3256f80f0b14","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":107,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"6cb01ae4-1505-4b4b-a7ed-daea7b8ba89c","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":107,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"0d107668-b78d-4f0b-94a2-724c47dbd6d8","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":107,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"75501b5b-aaf8-4e02-874e-0c1ded1891c9","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":107,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"4f2461db-98c3-4f3d-bca6-44003998fb28","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":107,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"60036b9a-7df6-41ca-92f4-5457984b59ec","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":107,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"abbe71eb-5672-46d2-af24-e0cb7eab70d9","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":107,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"253ceaae-cf84-40bd-8a42-c73327691ba2","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":107,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"d9863904-7c70-454b-b6f6-8f95aa9b5574","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":107,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"b7e17003-9e27-4905-a559-186ee285221d","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":107,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"37165dfa-8ff2-44af-b725-66aa59666982","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":107,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"a7983bda-d4e7-4b77-9ca5-d850db7d63b5","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":107,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"a808248f-0897-4507-9813-1ad28dfb8fe4","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":107,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"533349f7-75e8-4167-b4e7-955ef5b94941","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":107,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"d7d91ca3-7fd4-48a8-b3e4-41a78abfdbbc","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":107,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"a145dda3-43e7-4654-9b6d-3885c4f29c79","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":107,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"abec26b3-0659-4d87-9279-31f5b59488c2","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":107,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"19f1a88f-dbec-4a49-8315-fe1eb1580040","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":107,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"f5e31cec-70dd-4a41-acf6-ce39ad3304e7","block_type":"box","text":"utility.","page_number":107,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"08e5ef8d-fbc8-48cd-a1ea-c5176b120b06","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":107,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"682e2b48-0b0a-41e1-9fc1-fb97514ff11e","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":107,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"baf874df-3388-4949-90b2-db25f2212bb3","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":107,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"7e05c3d9-3854-4554-845d-05b32da37313","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":107,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"0469bdcc-cdc4-4d05-bee0-421f63d2547d","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":107,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"f0e4b3b0-56d3-46da-9c6e-fc1416dbea75","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":107,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"f65b9f94-0690-4bb4-966c-f2801cb76a2b","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":107,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"662b975d-06ec-4b30-beef-940958959be7","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":107,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"fc563137-5085-4159-b8ea-f2e6ec19e22d","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":107,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"4a93653c-f36f-463b-9808-9f9f3c132254","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":107,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"51ff9e22-5070-4ebd-bac5-c638141e6949","block_type":"box","text":"continue in the future.","page_number":107,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"a32357a7-8bcf-4230-9744-9b0660b2f644","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":107,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"b8e480c0-5c42-4d65-bd68-72f7de9dd4d8","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":107,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"43e43c2c-fd23-4621-a5f3-774e14f9ef00","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":107,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"56eab8eb-4290-4a26-83ed-119ed73fa794","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":107,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"8ad0bb4d-4181-4cc0-852d-f1dd84acd37c","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":107,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"3530f96f-15c4-4435-aa25-315c561f794a","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":107,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"01b107dc-34bf-4145-afed-8d63392d5973","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":107,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"07ef0096-fe1e-4020-a412-e0bb8909543a","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":107,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"e992e12b-eb96-4177-9693-5faeff72abfb","block_type":"box","text":"II-77","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a87e0bb-e111-4f49-addb-0e82563f9f2c","block_type":"box","text":"NM1026U-5978647-107/232","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"95e87b66-adad-4050-afd4-1479faffad3d","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":108,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"b08a3609-7a29-4431-bec5-c71f35f47809","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":108,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"f6e5a2e2-d54a-45d2-830e-fc3350353cc6","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":108,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"c86cacc3-322c-4afa-9abd-0767d3a086d2","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":108,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"4ad1cd8e-b9b3-4557-8cb1-519448c236e6","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":108,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"ee3d0406-b911-4a44-8e57-7fdb22c7cd46","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":108,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"2c006642-b862-46f5-a163-1ecdbd61ee34","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":108,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"25b65d4c-80c4-40d4-81e9-eb7814b29b84","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":108,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"7db0312d-f77f-41af-9568-5a92e008758e","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":108,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"4aa79650-73aa-4dfc-a5fe-e0cd139f565b","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":108,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"70ec059e-e83c-4b73-bf7e-23116291536a","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":108,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"a0541221-ba80-4e6a-b848-092b25cce1b3","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":108,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"bec1da20-f8ed-4e2f-93a8-57b9dbc85dbd","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":108,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"a3799e60-ca68-4633-8861-1866b4cc3fd6","block_type":"box","text":"ways different from regulation in the United States.","page_number":108,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"37d97076-2a59-4ade-b87a-5d10e52ee791","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":108,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"50ba9668-78b9-43de-98e0-e9bb46babcf3","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":108,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"d28db203-e2fa-47a6-85ea-f3dd27299992","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":108,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"6efdce81-f126-42b4-b765-fc0f68e0d0be","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":108,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"bd4ba387-ad5b-41e4-ab69-0b1a1242f620","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":108,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"87ef187b-bfa3-4a05-a555-bc6292b67757","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":108,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"dceabd4b-a7e8-4b83-944d-6ef5384c5637","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":108,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"aa704c00-7443-4806-9781-699f0f0ba1e9","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":108,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"1edf035b-2074-4fab-bb66-b6112636b141","block_type":"box","text":"increase.","page_number":108,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"f1357ec6-74d8-49fb-8d87-393a6accac3b","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":108,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"cb44a036-6075-421b-aeda-a22763154f68","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":108,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"68b42492-37c3-4e31-9271-47e1073ad86f","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":108,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"d184cd9b-98de-4ec8-b6e4-9de39dd19fab","block_type":"box","text":"Electric.","page_number":108,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"2fbc2bed-66aa-46d2-a21f-fb0e2623171a","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":108,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"9bef8645-1630-45b0-b968-7fd5bedc5f3f","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":108,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"0a771f6b-0a51-42c5-8209-ac168edea46c","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":108,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"dd57454a-2708-40f9-a264-007aa9eaabc0","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":108,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"a2a4f1ec-c770-41ec-af38-fae7d1f9f0fe","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":108,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"8dda0d36-7d06-4bae-ab45-611a152593b9","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":108,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"6dda1049-0a9c-4d28-9bc8-64ab85ca4399","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":108,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"932aa19d-3c4f-4b80-8fd0-c80c7bdfb1e2","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":108,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"745cb806-0b34-40c5-a193-721f9a5a6c28","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":108,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"7dcc010c-3871-4724-a21b-6876f85254c7","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":108,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"005e4994-ab70-4e9d-b2e9-cde42d7eacc4","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":108,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"17d1066f-be54-434b-8a55-2552e30e5667","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":108,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"2160e952-d742-4237-b837-c80bda27a21a","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":108,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"66e16dc4-605a-4ff2-bfd1-33a5e2e560e2","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":108,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"22aa68d1-5327-48d2-91c5-04909e457f46","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":108,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"b3cf52eb-1c14-4191-87d2-b3422388833b","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":108,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"ae5920ca-d923-41d1-b034-beb5ab8dbe00","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":108,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"57ec8d91-bfc6-40b3-a458-41ecc0449dbc","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":108,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"a9373025-e4b9-4569-8099-e0e81e072209","block_type":"box","text":"and for decommissioning such plants.","page_number":108,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"27b360f5-5887-4b4d-a1e2-b5001514fe94","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":108,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"940823ab-ea29-4e27-9024-9d2dee5a3294","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":108,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"0810daab-46ae-4253-8c77-5b48aa916168","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":108,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"516d7bc8-9320-4175-b13b-a7dfb687e480","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":108,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"1f05b073-ee65-4fba-b7dd-170900358254","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":108,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"3be6f3e2-2a31-4bba-8bed-0d24cd01d059","block_type":"box","text":"greater predictability of cash flow.","page_number":108,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"a9bfd858-da59-4f79-b910-a5d8d20c91ef","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":108,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"944a3381-4b39-421e-9af5-78eae406a8c2","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":108,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"9aafcce4-e8fd-4d87-8a2b-fed835f731dc","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":108,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"965d29b0-b31e-4af2-b6ae-167b8869ba02","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":108,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"5066f734-7d4b-4587-92d8-b0fb9971c6aa","block_type":"box","text":"II-78","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22c7e94d-8593-41ff-ba27-0bc7ab3b8530","block_type":"box","text":"NM1026U-5978647-108/232","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b11f160c-ce8b-4832-93a5-0e54b9dad148","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":109,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"f27111c4-7e0a-49e5-baa7-b9c327f6fb4c","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":109,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"074a42ce-a33e-4e4a-aee9-ee796d68efcb","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":109,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"dfe6b027-5d04-46e7-9975-82c1943f9e7a","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":109,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3bd9f620-0bb8-4f6f-859c-dc142e106a96","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":109,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"0b39e418-5aaf-42d1-b894-c36af84e1342","block_type":"box","text":"Telecommunications.","page_number":109,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"e395fda9-9521-4967-ac23-e3de7e372426","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":109,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"3bb9b830-6621-439c-ad0f-43d434cfb84b","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":109,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"d3fd2387-eb4e-45e6-93e4-181535768ff8","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":109,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"1def05d5-042a-4ce3-99a0-9fa36f7b75b0","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":109,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"6c56a501-f6f5-43fb-9667-bb2ec1398896","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":109,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"01c4e8c2-e92a-4019-8368-aa9c371c62e7","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":109,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"d391045d-fadc-4329-94b4-d23e1559380b","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":109,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"be6e9bce-2a12-492a-b22a-c12aad83c843","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":109,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"f219160f-3de7-4e46-bbdf-589dff53af77","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":109,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"58b9904d-1ff0-45a0-9f8f-ed58a64df7d7","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":109,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"9a1fd611-d163-4015-a0b6-6a52563ac462","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":109,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"03182814-0495-4742-a64b-07be29e34b53","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":109,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"8b7c8438-ff3a-48ec-a563-0676592ddc5c","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":109,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"7c6ae170-bac0-484c-b349-ee2a8c932d5e","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":109,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"645751a9-b088-4e76-9a2d-17a45021bd1f","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":109,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"34b7785d-7204-4fba-97d2-e0a4bd9b86c7","block_type":"box","text":"residential, corporate and governmental customers.","page_number":109,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"3bdda2e7-9999-4cc5-a5f9-1a23e0c697df","block_type":"box","text":"Gas.","page_number":109,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"0f341e6f-0f35-49ec-bd96-ce8b0c3de209","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":109,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"24acca68-7328-4c36-97f2-1a30784b91ff","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":109,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"009867fd-cd24-4bb8-9080-0f8224707044","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":109,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"158358e6-cef7-43ee-bc1e-ed1da1f17d38","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":109,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"db38d93c-49c8-498a-8fbf-cb908e795a63","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":109,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"0bbd3d02-6913-4c2f-80e2-c6528120bc50","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":109,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"6450122c-012a-4423-b7f7-41cc379d304a","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":109,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"f54fe968-a45e-448e-8b3f-1be9e9762b4c","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":109,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"6d5fda95-84e8-4323-98f6-d8ea8e79bacc","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":109,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"ab6c34e8-6efd-46e9-9942-b4e22fff1583","block_type":"box","text":"Water.","page_number":109,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"be733ca3-66ac-4955-b04f-bffd6800daaa","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":109,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"ca6095d3-c310-42f6-a828-5d75a553475d","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":109,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"584676cd-822d-4b5c-9621-488dca53a68b","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":109,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"beadd153-1d3a-4bdb-832e-6684d4efc785","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":109,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"ff534b89-c5c9-4d26-a00d-30ef1caca9b1","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":109,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"68f4ef3c-6464-4d8a-907d-744040b6635c","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":109,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"6cecdcf9-3c52-4930-86a3-1b39f4003ca8","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":109,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"5605b59d-4e51-456d-9785-4b6d919995e7","block_type":"box","text":"Utility Industries Generally.","page_number":109,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"a781f1a6-6966-4f33-a59f-aaf5bc42b62a","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":109,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"79ec4506-1c16-49df-b315-f7dd48bcbf0d","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":109,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"e7b7da45-fdec-4f8e-ba93-3e7cad279deb","block_type":"box","text":"not develop in the future.","page_number":109,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"8c376a70-3dc5-480d-ac79-4d7ddae60885","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":109,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"cf966f1d-a13a-4625-ab7a-a9d09ccd3a33","block_type":"box","text":"A Fund may purchase or sell","page_number":109,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"6cdaeab5-6bf7-4921-98f8-ff54531c2592","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":109,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"4e58fd51-2244-42ad-b365-e66d8a854556","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":109,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"d6cfa0b3-44de-4602-9177-498123b7cf44","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":109,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"e5f4dec9-636e-459a-b61c-a491a33666f9","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":109,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"76e07394-c833-48db-bab8-3bbd18923fa3","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":109,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"b2ddb1c5-1a3f-4af3-acd6-aa623b8028cb","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":109,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"9c41d5a7-745a-4136-abc1-5757f48370a4","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":109,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"fa0fa22d-285c-4f3e-aea6-228f03c61301","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":109,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"9a5b03b9-dae9-4ddb-96bd-2aa2b4d6f97c","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":109,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"c7579776-fce3-4f1b-9b1b-7548b7819d77","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":109,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"1d062a73-932f-40f9-85ed-cf6d600a00da","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":109,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"a6960c95-dc0b-49e3-a110-6d7b1c50d23e","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":109,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"94ec50cd-701d-43e3-84f1-765f01b76cd2","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":109,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"02559019-9139-4efe-9542-5c6efa95b24a","block_type":"box","text":"II-79","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2fb54f06-10b6-4c16-85bd-e8a9940f8a91","block_type":"box","text":"NM1026U-5978647-109/232","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0bf9aaae-04bb-4f25-a1c1-eb428e5d6974","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":110,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"6e102052-33b9-4830-b6ad-983aaf715910","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":110,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"cc6fa068-2def-4b86-969f-486a9ad6c91e","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":110,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"69bf68c4-cab3-49be-90b4-889fa20c9ab9","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":110,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"45d98c18-850d-4398-92a7-1a68d5b42825","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":110,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"f322940f-7c7e-4276-a014-d206c08b1342","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":110,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"cec9041a-1551-4d9a-8b53-ba8d087374b8","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":110,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"6a8f1414-6bfb-4cdd-b1f4-05d60a8e7828","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":110,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"3abb4aad-4435-4d99-84ea-fda051ff1975","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":110,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"92e63ceb-6fd2-49f0-8dba-203175491c5b","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":110,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"3e59c7c0-3eec-4fb3-a4b6-1e2969925075","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":110,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"362a7dce-8f9e-4122-a238-376fb56a5d1f","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":110,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"1eaa683b-4556-45cf-b906-f8a1fb5b3d44","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":110,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"cedbc5b0-2b11-4dc1-8b80-cadd063030f8","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":110,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"524bb8cd-38e1-433b-aa35-83b2638a961d","block_type":"box","text":"securities (","page_number":110,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"ed657eba-c737-47f5-8dff-34cd6a7f6be4","block_type":"box","text":"e.g.","page_number":110,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"7e258bf0-acf1-4042-af60-a7e3ce3d1b0c","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":110,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"2f6e10e6-d4ba-4a5d-816b-84ecd4486522","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":110,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"34c34456-bfcd-4287-b3ac-5951f0d83c22","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":110,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"3309a8cc-3ee8-4894-a961-21f987d33979","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":110,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"1d5e4c82-4e81-4453-bb5b-b4e7b391e107","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":110,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"36c77c45-3c44-483b-ba29-944738b17899","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":110,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"14f6e9d5-7b4a-4857-8c8c-6addf830dd18","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":110,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"507c7bff-65e2-4e78-b3b1-d7657658285e","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":110,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"94b54834-5156-43fe-a8fe-8e5a298c051a","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":110,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"91ebdb83-bb9b-43a8-a136-761d46bfbc91","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":110,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"8fea2ed9-4a00-4708-9f71-f7ae43c8f235","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":110,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"9f4c5ace-7271-4cc8-83dd-6b22f07c3d9c","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":110,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"9ad396c4-ba8a-47a9-ba35-ff4dc9cb22ae","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":110,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"739f6220-eca3-4f46-8916-8bec336a4bb5","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":110,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"713a6598-e08a-4985-b286-748b8b80060e","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":110,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"106c5b18-0846-4976-a268-5afbeefac84f","block_type":"box","text":"Yields and Ratings.","page_number":110,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"c745c712-f65c-47a7-8b88-f50978214c7d","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":110,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"b94a8222-cd7c-40d9-ad0f-9ba8b9340074","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":110,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"44b752ed-0716-4213-8f52-de7bb8471a18","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":110,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"eec05ffa-bf4d-40f8-8192-a42b4031d243","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":110,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"fe657d87-d64b-4a28-9aa3-d0a11c6def32","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":110,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"197cb4da-307a-4a1d-b629-1e29d3c4b9e8","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":110,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"05e8e0a4-66b3-4f91-bd1b-dcf3eddc67c2","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":110,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"2383418e-f2e6-4b06-afdd-b609a20793c3","block_type":"box","text":"continue to hold the security.","page_number":110,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"9df6f593-889c-400a-85cc-db72d3d09483","block_type":"box","text":"Zero Coupon Securities.","page_number":110,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"88b819fd-3c6a-4b4d-aaeb-fad9d15f1693","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":110,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"5d4befe5-b4e1-46b1-a0b0-0ff4180c2e5c","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":110,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"5b3ec87d-41eb-4691-a3e1-0bc3e08dde51","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":110,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"0dc6f423-5e82-4761-85c4-deddc36b9b9e","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":110,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"a221124b-7d93-43a6-84c9-ae870cddc583","block_type":"box","text":"security.","page_number":110,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"d6516103-b76f-4f11-9733-7c26e504336d","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":110,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"b717f600-cb95-418a-8414-26e93abeb6a1","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":110,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"a753e3aa-15a3-413b-a643-d01a33fbf827","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":110,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"ccd4233b-5dd3-478e-b404-72aa2c08ee34","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":110,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"17829687-8456-4bc3-ae30-67ddf1b284e3","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":110,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"cef33387-7269-4366-aea3-5ce847065913","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":110,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"d2702ef1-7517-4b6b-82cf-d167f56c17f2","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":110,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"02819791-8289-41a4-b6cc-85ee2bb93928","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":110,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"62d82ca1-0bf2-4fd0-9dcc-66aa311bb83e","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":110,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"5b04c202-5fe0-4502-9b9d-0be3435c37cf","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":110,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"cb36f1b3-747b-411c-a2db-bcc3aacd1877","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":110,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"d0a13187-6d80-41c9-9e25-2d5334652558","block_type":"box","text":"II-80","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc1eee43-02c8-4830-9895-cac368928255","block_type":"box","text":"NM1026U-5978647-110/232","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6c824e31-21d7-4a68-99ce-297b4f36da4f","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":111,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"6a3cec8f-d847-4328-aa32-136d1d53b9e9","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":111,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"dad88921-92eb-43ea-87fb-fc367cda5a20","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":111,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"7d546cac-2a8c-45f3-bb4d-11270efafe4d","block_type":"box","text":"intervals.","page_number":111,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"cc1776fd-7881-4beb-a4da-17bbe80c8e22","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":111,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"c2a65999-d9f1-441c-90f4-c7df46582ac4","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":111,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"5c50ea90-3c98-47e6-a9fc-c03a345e19bb","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":111,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"eb427488-ee47-4d6d-bdc1-012e05559f83","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":111,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"bb097adf-7251-41b3-854f-f5181b190196","block_type":"box","text":"exposure to zero coupon securities.","page_number":111,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"414b7512-ae70-4fb8-aff3-fb1ed5df138d","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":111,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"c535a62c-affd-4788-9d61-a1d6063cd4a1","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"f6e100ff-84ab-4094-8da3-cd9e8ac0e26f","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":111,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"926448e1-065b-4e2b-bb44-89f4e32a71f6","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":111,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"d9b4a900-d33c-4042-b3b6-20bf1c0ecae1","block_type":"box","text":"Suitability. (All Funds)","page_number":111,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"e66a5232-9e14-4d9a-a9f6-2797f1590908","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":111,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"53af0e7f-c905-4f2a-a4bc-227a904561f9","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":111,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"9f249c42-8ef5-44bc-83f2-73fcb959ca67","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":111,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"8d493083-442c-4fd0-8474-cb92c0cf3038","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":111,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"e6f79fad-6cac-4583-8a56-748ec6643f54","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":111,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"7efeb6e4-d690-45a8-aac1-3db257670450","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":111,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"da3a8448-e086-47f6-b99f-a98ddb4c4ebe","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":111,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"8819c6bf-6695-43ed-956f-ad6b1b9a4f5e","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":111,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"ad4cbd50-dbf5-46f8-954c-7feeb692cccf","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":111,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"e666886b-e131-44aa-81a4-9cc2a0fd54a2","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":111,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"cb8023d5-cf1e-4c41-86e1-aa8a919e26df","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":111,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"3ccaf18c-c919-4a78-8292-3ff89a4da1aa","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":111,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"43b09ae3-a98a-4df4-9bef-ad7bd5c79c84","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":111,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"a21a8519-6c63-477b-92fd-f2ed619938f0","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":111,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"be764693-233a-446f-8ea9-6bef10692154","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":111,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"9456a033-9e1f-40fd-8602-efc798a0f97b","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":111,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"cad789ca-4137-4cd5-9b6a-2391044177f5","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":111,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"ee9581c3-ead3-40d0-a4d3-3f56769de71c","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":111,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"195e4c05-b6af-405c-afbe-2d1a8f2984b1","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":111,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"54f91dbe-6a57-4ed5-b6c1-2f273870396f","block_type":"box","text":"(","page_number":111,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"e6e50134-fae2-4a63-8917-aa0990298b61","block_type":"box","text":"i.e.","page_number":111,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"981f2b4e-984e-473b-b6d4-66a44cc2e50b","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":111,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"b1ab07b2-d6e0-4aa0-a01c-edf4d67bc536","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":111,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"93073437-9352-4e0a-be38-3de0e96d8649","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":111,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"f5b35676-44cf-426e-bcc9-00fb528909d2","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":111,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"428dfb3f-317a-488c-8970-74ff47bb0d4f","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":111,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"a1b94941-405f-418d-9d67-a6cd87c0be27","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":111,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"01e24745-0a08-4628-8dbd-afe4a7926a35","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":111,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"612cddd4-8407-4311-9711-ef8d092c24d0","block_type":"box","text":"regarded as the sole issuer.","page_number":111,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"e519821e-72c5-4597-bfa2-fa2ecef21bd4","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":111,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"d6718416-7818-48d5-8bad-41d56c862caa","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":111,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"c3ee011c-4eae-4de0-a45a-f553f149a43a","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":111,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"60caffbc-f428-4a57-9081-ca06d2099ff0","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":111,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"3cbe038e-72db-4801-984a-c938ae9e8f02","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":111,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"577b003a-ee28-4099-91e7-0757c75eacec","block_type":"box","text":"75% of its total assets.","page_number":111,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"46e1d0d9-5612-439d-a81a-91493c8b8fa9","block_type":"box","text":"II-81","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce88fcf0-74cf-4acf-8380-75ef8bba3038","block_type":"box","text":"NM1026U-5978647-111/232","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fca1ab7d-0ac2-4158-8ade-49df34e3d091","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":112,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"731ecda5-8638-4441-9a8f-8cc0de269132","block_type":"box","text":"Directors and Officers","page_number":112,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"b4507982-e1ee-4c48-b51b-3b3fb69c9a9f","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":112,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"59b72cb8-bbb9-47f2-bd6c-c7ecf254733c","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":112,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"670a720c-6fa7-44eb-a74b-21e990a820a2","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":112,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"a91db2ff-f42a-4fcd-8a39-f47f874bf869","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":112,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"efe66e65-4bb0-4f1a-b540-db462c37bdfe","block_type":"box","text":"Management Arrangements","page_number":112,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"9f82fe35-2673-45c9-aff6-640086a8fa05","block_type":"box","text":"Management Services.","page_number":112,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"3613f049-fa37-4515-8ad1-b40435d24aee","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":112,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"849ed84e-5a9e-4251-a513-1c6455edf6e6","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":112,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"622fb921-931f-404a-bd2a-c458538ad9e4","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":112,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"1cf7a73d-4354-4361-ad9f-134383de2359","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":112,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"4c1d0f6b-fd61-4069-931a-007c5e088b8a","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":112,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"49d9ed84-c3aa-4025-8c91-61bbda7e1706","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":112,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"ebd2b292-812b-4a55-b89d-81784730ccca","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":112,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"2a3d2104-c279-41d7-be57-5a493f977d42","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":112,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"a94efb72-cc93-4916-8cce-c9689af20961","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":112,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"b95ceb27-f16f-480d-98ee-45a69ce7ef37","block_type":"box","text":"Management Fee.","page_number":112,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"5a336762-fbc9-4a39-82a3-fae9ea28e7aa","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":112,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"a81ba5c4-c6c4-4f50-b53f-e23cea520246","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":112,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"c3279943-4599-4694-9591-646f0e2cc500","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":112,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"bc6e275a-4c95-4448-b894-a53ac694d239","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":112,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"a0dc7477-0c9d-450d-a17d-2dcb7c6690d2","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":112,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"7186dbf5-6426-46bb-9de6-179e59e07a60","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":112,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"c71b0c61-a884-45c4-960b-312805255ed8","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":112,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"d3a6729c-fc94-4512-805e-9f278fa0dfa7","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":112,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"8e7b6ee1-0eb0-4f47-9cab-a0ed4a5ce734","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":112,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"657dc59b-30e8-4f78-821b-620a7fa8acaa","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":112,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"62242e1a-a9da-436c-b038-4cda9fb8c94e","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":112,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"b89e88fc-9bf7-4324-8fe7-77cbb0ccc9d5","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":112,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"8980c782-25b0-4e1f-9e07-ad7a2aece648","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":112,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"bb910fd4-ad35-4e98-88a3-98004a96450f","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":112,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"f0a8c239-c8d8-4b4a-9e98-c4d3f10e0f32","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":112,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"32a9938c-7e0a-4d86-9621-5b0127e7d3b4","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":112,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"ecc971ba-4bfa-4cd9-a36d-a442890edb48","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":112,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"08ba203c-4141-4613-a088-0839be8b1fe3","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":112,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"577047ed-4931-443d-a2bf-74e365bca01a","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":112,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"225584da-4c39-45d5-9eaf-03ade636c970","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":112,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"0b008846-fe81-44c3-89f8-fbd42e996087","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":112,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"99a0ef0a-c390-4da6-bffb-a7dcc583461d","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":112,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"3a915b7e-f976-46fb-9ff0-fd118300f31e","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":112,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"1061f4f0-1db6-4db3-b4d7-dd13e16df96d","block_type":"box","text":"Sub-Advisory Fee.","page_number":112,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"d5dcd689-e899-44f6-b045-36720027da03","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":112,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"f9e3fb67-1d82-468e-8467-89b3c47bdeb7","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":112,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"0d74894a-0f39-4bb4-8cfe-d4604a363506","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":112,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"dba99d52-21cd-44fc-94e8-8657f059fa22","block_type":"box","text":"Organization of the Manager.","page_number":112,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"97531f99-6ba1-42f6-b7ce-0d55688de9de","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":112,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"187c4e4f-c473-46d5-baf0-ed6df6d5d588","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":112,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"1eed4582-caab-453e-93ce-60a29e925442","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":112,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"189f4204-ced9-4b21-9209-0dab7c022ce5","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":112,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"0c51234e-6801-4fcb-aa2e-0193aba590a9","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":112,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"108bfcc4-74c2-4a29-a662-9cdcac104d35","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":112,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"c75e1c17-d700-4821-b352-4fc51792b1dc","block_type":"box","text":"Duration and Termination.","page_number":112,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"b65fca79-493b-457f-826c-67d564fcd7a0","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":112,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"17c3dc43-be37-43de-80db-c2b5cc3aa5bf","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":112,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"93b0c122-6658-4a37-90f9-1b05b32423d7","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":112,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"831fee59-fdbc-42aa-b6a8-626d24f6d75d","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":112,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"e60af00b-e67e-4131-85ae-1d528f5c09bc","block_type":"box","text":"II-82","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20ea5db9-e3bd-4aa3-a378-d970623d7ef8","block_type":"box","text":"NM1026U-5978647-112/232","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e9a1f04d-fca0-49f2-959f-dfd8be1b426d","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":113,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"c9218573-e4c2-4dcb-b40f-33be112521b6","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":113,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"7dd86c5d-2b8c-4a65-b0e3-c78570041e79","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":113,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"32dcc436-a5b3-4c10-96a8-561c279a22cf","block_type":"box","text":"Other Service Arrangements","page_number":113,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"6a9a453e-0fc2-4f4e-a5b3-6b76c7ffeadc","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":113,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"b99b546b-71e5-46cd-b9ae-706ddc149464","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":113,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"2afed7f9-2035-4e60-94c0-2a7b2259b0e6","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":113,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"b64c8b39-fea2-4d4f-a892-7371be449741","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":113,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"05c16115-5fb5-4576-82d7-690fae7fec0d","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":113,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"6eea2851-dc9e-4ab1-bc06-71bfd1f06d88","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":113,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"fd37558f-e259-4467-b2f2-4fe890f277e5","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":113,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"36117dd7-6fbe-4828-bae1-9844a125dcbc","block_type":"box","text":"that Fund’s SAI.","page_number":113,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"99ad6a52-e7c3-4c70-81b8-4c5ea54f9a33","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":113,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"b3eae034-528d-4842-89ce-7e4ff02611d6","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":113,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"16410824-d9b6-49fb-901e-fe136296c828","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. 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Such contract is not assignable","page_number":113,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"6fe9a69a-0662-434e-b403-4972d12fee54","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":113,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"4c2f7424-29be-44a6-85b2-b04075ac18fd","block_type":"box","text":"shareholders of the Fund.","page_number":113,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"be1e4f04-c8b4-4d4d-b359-9357ef17cd09","block_type":"box","text":"Transfer Agency Services.","page_number":113,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"346fae48-4909-4502-a004-0cd9e97a0bc1","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":113,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"bf6322e4-16ce-4bf6-8cb9-721433a4834b","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":113,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"755ea361-aee2-4166-8923-5901dc4e0b82","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":113,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"3f450910-e755-45be-94fe-f2956d2961d1","block_type":"box","text":"with the Funds. 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Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":113,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"07d59d9f-f24d-4e06-9138-b567c6334b60","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":113,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"d32422aa-255b-4a8f-b5bf-01cdbfb38fa2","block_type":"box","text":"Custodian Services.","page_number":113,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"f6cf07c6-626e-4919-97cb-a9f64e3a886d","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":113,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"2b2bd03a-3816-4faf-b449-da84804c4211","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. 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The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":113,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"03a8aa05-a57e-47bd-81a9-5a015243106f","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":113,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"f7f261d6-af8b-49e2-adfd-d6477a0f1f79","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":113,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"dc75bfdb-983c-4820-8b64-8ec6711d56bf","block_type":"box","text":"cer tain assets.","page_number":113,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"85b38d0f-b899-4aef-9bdc-e039581b478e","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":113,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"c1ba55d8-cb18-418f-895e-f39fbd1cbc41","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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With respect to such Funds, the custodian fees, including the amount","page_number":113,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"17eb683a-5439-4c22-be08-66cb0b9f9369","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":113,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"9023af45-5297-4d92-9616-35914fa27d40","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":113,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"872dafc4-fedd-427d-9e60-3ff704223162","block_type":"box","text":"fiscal year will not expire. 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State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":114,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"68687394-0e14-470c-8824-2ba69561048c","block_type":"box","text":"Master LLCs.","page_number":114,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"94f2b918-b65e-4dd3-94e3-55321bf0385e","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":114,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"33666a45-5779-42ff-b590-876a1b5fbe09","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":114,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"b6e81f43-9c24-485a-b5c1-3ffd4dc634b3","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":114,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"f113f9fd-655a-4ce7-80df-99cac86a28c3","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":114,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"df55285c-cbea-4475-8434-6281429e103e","block_type":"box","text":"Distribution Expenses.","page_number":114,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"f4139a7d-775d-46e1-9113-194c90649e4e","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":114,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"25a56594-832f-4b4a-995c-320e55221ea7","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":114,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"cbc1a53b-4bdc-4bfa-9f5e-2aa0713a985a","block_type":"box","text":"Agreements obligate the Distributor to pay cer tain expenses in connection with the offering of each class of shares of","page_number":114,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"d0c3a926-6b8e-47fa-96e0-6f3b4fb9e8e4","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic repor ts have been prepared,","page_number":114,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"adceb5e1-9be6-4273-8984-5ac6345c29dc","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":114,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"90f1580c-0dd2-4cb1-a57c-1183e2d84e23","block_type":"box","text":"in connection with the offering to dealers and investors. 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Each Distribution Agreement is subject to the same renewal requirements and","page_number":114,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"f20ca91a-9912-4857-92a7-1276cf0baac1","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":114,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"a0e1fd3d-0be4-4829-83dc-97b7a31e785d","block_type":"box","text":"Code of Ethics","page_number":114,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"9be03409-1738-42cd-8395-c11d2ce11073","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":114,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"0ccfa40d-7dab-48b8-b9b9-82717cda2e0b","block_type":"box","text":"17j-1 under the Investment Company Act. 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Employees subject to the Code of Ethics may invest in securities for their personal","page_number":114,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"6ec64d2f-f1af-4364-a015-7e1cf9b1b8fe","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":114,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"6c1ca4c3-82e1-41bd-92be-3a85c8f0a80b","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":114,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"fa1feb5c-54f7-4390-bcd9-3f277855c45e","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Por tfolio","page_number":114,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"75ed6519-cfcc-4129-953b-f258a911f5a3","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":114,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"48c1129e-30d3-4d18-92f2-73a52a5f72c4","block_type":"box","text":"por tfolio securities, as applicable, and other por tfolio information. 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BlackRock, its subsidiaries and their","page_number":119,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"55d72981-93eb-4e26-ba4c-10bc893b6d92","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":119,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"0825c281-3032-43af-a178-16d8836f0698","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":119,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"63c77bdb-ef35-40e8-9d0f-9e47ea915def","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":119,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"f59f0f6a-165d-4ae9-9c64-59cae24a00f9","block_type":"box","text":"and have interests other than that of managing the Funds. 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Such other funds or accounts may offer exposure to strategies that are identical or","page_number":119,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"3be9673f-ca5d-40d2-b25e-1de53c253d57","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":119,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"388cb5dc-7da0-42ce-bdb3-f9a661c99f89","block_type":"box","text":"services provided by BlackRock","page_number":119,"box":{"x":69,"y":566,"width":224,"height":11}},{"id":"367e0e44-37a8-420f-9812-acfd37ce3f25","block_type":"box","text":".","page_number":119,"box":{"x":295,"y":574,"width":2,"height":1}},{"id":"8ed5d5d2-915c-4cfa-95dc-09769ff77a07","block_type":"box","text":"BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":119,"box":{"x":304,"y":566,"width":603,"height":11}},{"id":"bedfc972-3622-4571-8d0e-f12145cc90d7","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. 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Such transactions, par ticularly in","page_number":119,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"2d9d62d2-0a44-49b1-99e3-ffa872aa257c","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":119,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"1bea57b3-6c30-42ce-bc41-734c3802be63","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":119,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"3c36b1fe-3c60-45f4-9e2f-b275eb961396","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":119,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"c7b69bbb-c1d7-49f2-83ad-fbd19fb3948a","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":119,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"cadfeadb-b6e2-4170-bce5-7b7f0dd0e598","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. 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This may occur with","page_number":119,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"2f3e9786-e0bf-4aca-914d-18f1079f88fb","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":119,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"61b6c3a7-3d51-446b-86b5-2f8205e0f04d","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. 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BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":120,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"b5b28acf-9b57-4775-b3c0-eabe636b8098","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":120,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"3d0afefd-8b87-46a4-a7ff-8e1e2b287920","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":120,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"d39e2200-145e-4b34-97dc-49edd3bf6221","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":120,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"dbfdced8-c547-4d8c-b53a-6ed0bc01e0cc","block_type":"box","text":"BlackRock. 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BlackRock may (but is not required to) effect purchases and sales between","page_number":120,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"b37c8eed-4211-48ba-8bfc-aea50a2a129c","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":120,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"6db19220-94a7-4de0-a3a0-b20a1a293e82","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. 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BlackRock may have a potentially conflicting division of","page_number":120,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"c311198d-ac4a-4c30-8f76-cd5f613db615","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":120,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"dbb5ec08-300d-4b09-b995-0be4936ec320","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":120,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"1835dffb-43d6-4b5a-a31c-bf04a63a0244","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":120,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"1bd2cd89-68a5-4586-b225-85b2ea849539","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":120,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"abfa069c-a9e9-4aed-83a8-f1ed3d00480d","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":120,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"e85d4630-4276-4a86-b286-a082672a5a8d","block_type":"box","text":"case.","page_number":120,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"c7bde670-c75f-4645-8bce-9d39dc8c38b9","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":120,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"8d0800d5-d00a-4037-a6e6-fa9a2deea121","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":120,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"7dc32b8f-449f-42e1-af8c-a3c3f50f2784","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":120,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"c611dc32-1a05-4d90-a36f-f0e85e8c9f15","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":120,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"ca3289e9-7dc7-4035-bdcd-03241074f2b0","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":120,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"a7b3c3b3-314d-4c1d-ba74-04e48ea0ec4c","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":120,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"44358413-c666-476d-85a3-e6432d946ca6","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":120,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"97d6b6a7-5c62-498f-b651-22cfa2826723","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":120,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"c1ea8599-f83e-4d6b-afc1-0cb411401f62","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":120,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"8580b8e7-d6e1-472a-9d59-97c3589536ee","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":120,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"a294002b-60d6-43d4-be0c-42fb559d42d0","block_type":"box","text":"II-90","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"168c7ffb-0ad9-4855-863f-19a20212a352","block_type":"box","text":"NM1026U-5978647-120/232","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"14170471-40a3-4767-af3d-7cdd3b518803","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":121,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"06a73dfd-2a17-40ba-854e-012e4a8ed671","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":121,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"88d3d734-adeb-430e-b0ff-13ce73a76361","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":121,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"42e6c48e-f3e4-48ba-aad5-4181601783f9","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":121,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"cdb859c0-1844-43e6-b67e-bfee20d90a65","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":121,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"151d88a0-6384-4d2e-93e2-38f4c1812bc6","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":121,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"8bd0efc9-540f-4ac6-8590-0df1fdc2eb76","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":121,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"5d878361-69a6-4045-9c92-0b870ab0adeb","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":121,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"bcfed0ee-4143-4a13-a402-611280e9a710","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":121,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"a0c6c136-0c39-4a30-ada7-cf4aca92c8a4","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":121,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"798e9128-1d01-4d4e-8d52-721cad2844eb","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":121,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"5ebf9e58-18a2-4bf7-9927-eb4a0af4c75c","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":121,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"6d62bdb4-a0ad-4a14-9b03-6497e395f0c2","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":121,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"cbf54848-67ca-4648-aca5-be167bd65736","block_type":"box","text":"managing a Fund.","page_number":121,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"28a089fc-85a3-4060-95ff-90261087fd30","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":121,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"36ee89a7-fe72-4ae3-b99e-d7bedccab1a7","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":121,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"52af87fe-3c95-4f37-bb2f-6b197ef595f9","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":121,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"aafac189-02c3-4adc-8334-d3010901ac03","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":121,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"f39b0d54-ea15-48ed-9d56-3492b7708802","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":121,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"e9a5aba7-7f89-4398-84ae-332c50da6a04","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":121,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"f4156f0f-8452-4bcf-9672-439c709280da","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":121,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"d3092d29-022e-46af-ab9c-249ac7c61161","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":121,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"40c35d35-1bc3-4311-b4c5-e0f92702256b","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":121,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"d03a690c-644d-4ac0-aa68-e377b980a14e","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":121,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"29cc3fe7-3999-4ccf-9a32-ebc241b4815a","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":121,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"de3a31ae-202a-47e7-954d-edc13f4ef44c","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":121,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"c45991e7-4dd5-4b0d-8048-9aa39e6b54ce","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":121,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"58cf9f22-2677-4bfa-80c1-7ac3622e7483","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":121,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"89bb32c7-aa22-42c3-8ba4-63a0e741b1bd","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":121,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"30537f47-a9cb-4080-8c42-2e018fc93d48","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":121,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"f2dd2a9b-bd62-493e-a0a9-b80899617b55","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":121,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"788cd1fb-657f-41ce-b9ba-905efbf1c459","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":121,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"09eead2c-6668-4c78-9173-868220a279ab","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":121,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"8f731679-eea3-4c5f-bb33-61e26ec5ef0d","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":121,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"5f476e5a-bcc5-49aa-91ec-f7fb722a3824","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":121,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"8d61e64d-fc96-499c-b726-769e64cb59be","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":121,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"a13da567-2222-4910-b4c3-e495abc857b2","block_type":"box","text":"under management for BlackRock.","page_number":121,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"d7dc164e-d041-47c0-80e1-b06da30cd8e8","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":121,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"870dc0ef-cad5-4a43-9484-f887dbcebf7c","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":121,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"f4b9eb7e-19fa-4094-a7be-fe9be555b48d","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":121,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"0647aa1d-c3f7-4067-bd30-c1ad87bb6b30","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":121,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"f0c5b33f-5933-4642-88fa-0cb9046cc226","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":121,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"0d639853-4f43-4d8a-9bbc-7bdc4758f447","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":121,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"b2ac919d-acf4-4b65-b6d8-5ae4eb7c3f7d","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":121,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"f9ec2f68-1652-4d00-8b90-690a7baf593d","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":121,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"bfdffb82-e05f-4357-8c90-f38ade6fa4d0","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":121,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"954380e9-65a0-4e48-8082-c6354eda8f75","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":121,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"f21675c4-e5b0-4272-949b-14a3f69cbd7a","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":121,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"84c49065-e265-4d73-9f5c-4c74bb019b58","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":121,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"7efedf0e-3937-41fd-8351-ffef726ec32c","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":121,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"0c31fc11-63f7-4eae-a357-71b5746c32cf","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":121,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"de938613-8f79-4443-a3f0-b5b5b8a4b955","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":121,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"2f4b271e-6a62-40b5-9a47-d6a2059484f3","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":121,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"ab79dd83-8d7a-4257-b588-d9b8db5c1b37","block_type":"box","text":"II-91","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5707f0c7-d6ac-417b-816a-55aaf2715f19","block_type":"box","text":"NM1026U-5978647-121/232","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2772d061-0315-4fd7-8ca2-856d46f49bb1","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":122,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"91102ff5-aba9-4e62-b8db-0238e80a049c","block_type":"box","text":"any such fees or other amounts.","page_number":122,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"dcbe36b2-42ee-4423-8545-8ff1b9394bd0","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":122,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"0b519a3c-525c-4e3b-8a03-d0878cf630da","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":122,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"31bb683c-6666-4793-bd69-bc5791e69d4a","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":122,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"3175c8db-fd0a-47aa-86b7-ad30fcd919ac","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":122,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"b6510e41-012d-4f86-b006-5390169f0152","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":122,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"6c3e45cb-973c-4920-a119-e6064d908f16","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":122,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"2b88076a-fcad-426c-b530-e8902c700370","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":122,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"013a563e-8e5a-4c83-8ab4-0327b023ec38","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":122,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"9d592420-46c2-4f73-a803-eadb02e05358","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":122,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"512eabc8-6811-42e5-bfaf-81e24a656bbe","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":122,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"89c717c4-e0de-4871-bc5d-d53ff3806e8d","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":122,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"da39410b-3ba1-4349-907f-86a9ad2d428d","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":122,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"ec12ff79-5ddb-45d1-ab63-8a58205a381d","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":122,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"26f8713a-8524-4153-af15-7b1cd3d5a4c6","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":122,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"5a90df4a-2d72-41ee-ade1-cbecd64201b7","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":122,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"a2e58391-2129-4c51-914f-90f87318bcb3","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":122,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"74a5c0e0-125c-4d04-b8c4-21eb91d83a40","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":122,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"af620179-1706-42b2-8247-88d6d4e35872","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":122,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"b81c4a71-6d7a-4547-ba17-c4a576a5846a","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":122,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"dc9c77d9-d9e8-4c96-b1b9-203c9d7f309d","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":122,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"533f62a7-222a-4580-b743-701887999c84","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":122,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"ee052675-50a9-4548-840e-7ac169f6e012","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":122,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"3d4748e9-244b-4b9f-b805-476da13e7461","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":122,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"2feaa057-5766-4efe-80f0-da4b6d2f0dc0","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":122,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"970c156b-7b97-4199-89aa-c8111e5aebe2","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":122,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"5104fa62-fd86-4a4a-af95-4f2cdbb37e0b","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":122,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"575b6be3-9bc2-4742-9d70-91ba26ff95dd","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":122,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"630ee299-23ed-4363-8dcf-e5ac1d890d42","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":122,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"05ab7570-7734-4d2b-b4c2-339754410626","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":122,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"2b20a5ca-0295-4596-bb0e-10fe8954637a","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":122,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"39eb15a1-66fa-4522-8985-90e15c4c40ac","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":122,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"fab8530a-e10b-46a5-a190-3c217b9c66b3","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":122,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"12cf3480-3457-4acb-b28d-862f5adabadf","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":122,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"2e368e23-2fea-4194-a013-65ff3819d5b8","block_type":"box","text":"regulation.","page_number":122,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"373ae397-7593-4277-be40-484e08c57121","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":122,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"dd46f1b0-cf2d-4464-a76f-a788b7287339","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":122,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"34852273-d6f9-4f12-828c-84a1537fe7aa","block_type":"box","text":"various program limits (","page_number":122,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"a91a6b5a-ac58-4d4f-a32f-97b5f2c18c40","block_type":"box","text":"i.e.","page_number":122,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"8553f008-33e5-4f8f-801d-030394c7e8dd","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":122,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"0c648378-c590-4033-8ffc-ae4705940342","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":122,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"80a6ec5e-90b9-4c87-97cf-7e9255807222","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":122,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"b25bbb3c-c968-4b47-a718-8412dd12e10f","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":122,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"50d28825-c72d-43fa-9edb-9fcbe1e6937d","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":122,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"bdfbeb2e-c36d-4146-8bb2-f8afc4065c63","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":122,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"3ec429e3-3854-4dea-8a99-50082d302ae4","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":122,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"a5428d4b-9f79-4c51-9494-77a87ae4081c","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":122,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"70366323-04ae-4292-bb6d-ec7ae5c16403","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":122,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"76ac9e0e-2c49-45da-8110-b7c1f6834e1a","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":122,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"f1e27c46-81b0-488a-815e-2e8fc07af566","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":122,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"a8fa0832-f2b0-42ab-866a-a8b2357737aa","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":122,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"b060a58b-cd64-48c5-b178-8fe00b631647","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":122,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"deb87960-1f63-44f0-8a7f-5e34bf51612e","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":122,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"351a4c4d-dd6f-4b66-92a4-b08a54dba860","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":122,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"debb14e8-ec9e-4ffb-b685-70915f6e95c9","block_type":"box","text":"II-92","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bc232adf-0a0d-4eac-ae13-b20ff0da3d74","block_type":"box","text":"NM1026U-5978647-122/232","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b355fd99-d5fd-46cc-9b63-6df566f7bcbd","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":123,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"402533f9-c23f-45f8-9018-e5c379220521","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":123,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"fffb7a10-7b18-41f3-a8b6-94b3980d5a5b","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":123,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"cf2b6448-0075-45e8-8a74-234dda5a2198","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":123,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"56b8a950-47a1-49b8-b983-5b9bbb63eb4a","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":123,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"c5089b69-e79f-49db-a83a-f74cbf27c209","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":123,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"f01530aa-d0ba-43e4-a999-039dd09b9e68","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":123,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a55b14b2-bd58-4209-9d17-3fafe89dd27b","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":123,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"6ace2a44-8ed8-44f4-b7c9-3e7646160008","block_type":"box","text":"than through client commissions.","page_number":123,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"7b3e3e55-154f-403c-b45d-035af1ddbe34","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":123,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"1e7cec91-237f-43e3-9997-85dda211a789","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":123,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"82e61ea2-940c-4515-87d0-cec3768cd8e3","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":123,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"b13e0ddf-f2b9-4b31-b269-f92dd6567e9d","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":123,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"7e8755f3-accf-4e0c-8ede-3522879f6057","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":123,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"5c951bdc-ffd8-492c-b1ec-a6dd999918dd","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":123,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"4684dab0-b7c8-4156-9106-b296308dbecc","block_type":"box","text":"research-oriented software and other services and products.","page_number":123,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"1c864a9e-22ec-4cd8-a62d-ea2c705f704e","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":123,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"47953445-76fe-4cc7-b641-51e75496224a","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":123,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"7524ae64-6f79-47cf-9dde-ac1379281eb7","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":123,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"3b67c7da-c420-49f2-a5ea-0933ce77ef73","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":123,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"02e6a9ca-ab84-4681-bef5-28f5d3ae5dca","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":123,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"cbb49fa7-839e-4f14-bfa4-6ce4702179b7","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":123,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"001b51fc-03f5-4414-848f-e40730217d57","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":123,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"fb324fce-1170-4bc1-bbf2-976fe163dacb","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":123,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"7d114026-4b55-45fe-9065-87aeb84c51f7","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":123,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"3165cf00-8f79-44c6-9915-1ed84c35d462","block_type":"box","text":"and services itself.","page_number":123,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"3b5d9d07-ec59-4934-aa14-e4fb48580da1","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":123,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"604c31e3-6ed6-4b96-944a-176b98aa6a42","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":123,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"c6995006-8e7d-4a2f-a13e-82ebdec5253b","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":123,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"90d9b347-e282-413b-a4d7-5cdb2632f7f5","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":123,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"aee80c2d-7089-4858-8193-438a7de8c659","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":123,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"d9461516-d22c-4335-bec2-be1af6bed98b","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":123,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"b3c276ba-686e-4769-bec6-fda8f8e757dd","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":123,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"ac3198be-a4b9-486d-adf4-b78bd2ba7b07","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":123,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"53e09a39-d3d5-4db6-af5a-06f8c2191616","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":123,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"f0e52bfe-2621-4cba-a025-96cfe2597eea","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":123,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"6407a8a2-142a-4ffe-9c9c-39b19863fca4","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":123,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"3d4e010f-d6fc-4b51-a22c-d57f12ce18cf","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":123,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"aad50da2-5484-43ff-8761-dbef22f33989","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":123,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"f1c950e5-00c6-4f0f-8131-f31b704b41fc","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":123,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"a4820225-ce99-42c6-a49e-7e058296d42e","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":123,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"0bd602c9-3c82-4439-868e-b0e823952d8f","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":123,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"0b263eef-8c90-4c0d-82da-b46085c19dac","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":123,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"86cc1229-3bf4-40df-ac84-e10a583a7d69","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":123,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"c7fcb2d7-411b-4b92-8d69-886fa3932e54","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":123,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"ee424273-5aee-4b21-abed-7f7b624fa982","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":123,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"13cdeaed-0139-4335-82fb-6e1e6a81177f","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":123,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"0419ae12-f690-4c10-b767-02251f4a2625","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":123,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"dab79c45-5c12-4907-8a42-a268b866b7ef","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":123,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"330eb227-7b8d-4a20-b40c-ca6b0d479730","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":123,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"41813550-c062-4c0e-b3d1-9ae45ec91ee9","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":123,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"8df65713-191f-44db-81da-a65131d7b736","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":123,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"5d86ec30-8e06-43b9-8599-0b9de189f853","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":123,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"a2523667-955c-4699-9f2b-14e52ea40a5f","block_type":"box","text":"II-93","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"595d2b7a-8205-4d1a-a714-0ef03ac472d9","block_type":"box","text":"NM1026U-5978647-123/232","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f989cad3-3ac1-4f84-951a-185445f0f614","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":124,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"85d4a4b5-ad44-457c-ad3d-372f007834a0","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":124,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"756cf932-2968-467e-a648-47e4e0e32497","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":124,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"56b5a6f4-3025-4d3f-b6d2-2b759a3f7c0d","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":124,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"50532ec4-66dc-4be1-a199-83656b038988","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":124,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"01f0d154-573a-4b58-8d98-369882ab28c6","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":124,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"6989bad0-2e9c-46df-b34a-b1f9d6477446","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":124,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"19b37737-0eb8-4ef0-a52b-91a01786c56c","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":124,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"9e43e762-5091-4623-83f3-f0eb8d8bd5af","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":124,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"d30b9575-89e7-4995-a5ae-5b0e77c7b0ec","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":124,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"b95b1e01-57f3-459b-ae3f-0cffeb755f79","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. 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With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":124,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"af2b5011-2f8a-4ffd-8f56-1c9d9acc67eb","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":124,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"2c136b35-3736-48dc-847a-565d7a88a4ab","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":124,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"1cb48859-d0d6-42c5-93da-c0b0f9902e0e","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":124,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"1d783032-d3a5-400a-834f-8785565dbb13","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":124,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"105e85f1-f3c9-44ef-a296-ada6773a32f2","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":124,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"8a118f35-a7d9-46f1-b2b2-08bca7a89d3c","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":124,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"b4767eab-d2a7-4479-bcfd-ef84c82fa2fd","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":124,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"e76b6e9c-6c9e-48de-9b73-e18630db623a","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":124,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"bac864bc-fcf1-4977-85d1-340876941690","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":124,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"a3708623-336c-4aec-9559-fa0a30f44725","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":124,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"a5f6add4-4961-45a1-a610-34d1a237fce8","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":124,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"2c9c462f-d0ca-42bb-81d3-7f5fe22a4f78","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":124,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"c061cde8-a8b7-481f-8096-cde76d044159","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":124,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"fbf65dbf-941a-4bee-be97-e492b30fece0","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":124,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"580ba0e9-3054-49da-b183-0abfc7d6cd1b","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":124,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"ec1efa2b-13f2-4332-b93f-3739586658ec","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":124,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"b07e62fa-a261-4b26-be6f-48ec7f8604a1","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":124,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"fc2aceb0-ee68-444d-a010-a1843f531da7","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":124,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"07ce66a5-c596-45d3-a524-ddc4868c6ca4","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":124,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"aa475c10-0c0d-4ae1-ad8c-fe3410aee3a1","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":124,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"48b58998-eb1a-4172-bf0c-f2742640877d","block_type":"box","text":"some additional expenses.","page_number":124,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"e7ce1c81-32d4-496a-8740-8ec8334b9d13","block_type":"box","text":"II-94","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc66713b-f58e-4293-966d-569a3353dc7f","block_type":"box","text":"NM1026U-5978647-124/232","page_number":124,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c88650a6-3818-4d77-8010-b34a2384eb1f","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":125,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"0c3fa80d-f453-4c1b-9c60-7f691fc5d225","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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Each Code of Ethics is also available on the","page_number":125,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"06af5821-61a7-4f20-ab49-f39d0e7c89df","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":125,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"29d69b06-76f7-4ab7-ac96-ac24454f2371","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":125,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"520a5940-f4ac-40a6-9eef-b95f4f0e8541","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":125,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"00355161-2a06-4330-81d2-cb3ac0bfe09b","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":125,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"3be14af2-18e9-413a-93a1-a492d485b9b3","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":125,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"c9ae793e-13e7-4d91-b9d3-c20118651772","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":125,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"0fbdef34-b81e-4f46-9c11-f40e6a47fbc9","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":125,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"fad2d6ed-23aa-49ff-b2f0-d62dd421c4fc","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":125,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"72f2f05b-5ded-4b98-9dff-422f3cb025d4","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":125,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"ecef884e-9b61-4e1b-9066-1f16219e0eb8","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":125,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"f6337ef2-21ef-43d3-aee9-649bf4ee6d94","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":125,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"434b8ea5-792f-4d4f-9d9d-b04943ab5f20","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":125,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"49f8a047-c6ef-49ec-9fcc-825f8da23114","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":125,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"afdc19f3-e265-4977-a5d8-a6629c96eb87","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":125,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"72755f6c-07cb-4366-a132-c11ffbfc75e3","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":125,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"979efccd-65da-4312-bfad-ee6ff78eb240","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":125,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"41bdbce5-e9f5-4b92-b4ad-80e136df1f7d","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":125,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"af3daacf-a9e7-48ef-9dc9-61ddef264e1d","block_type":"box","text":"public information about the company (","page_number":125,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"8d79aeb4-7add-4acf-85aa-73eee6d4068f","block_type":"box","text":"e.g.","page_number":125,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"cc0a6201-1bc3-4bbf-9114-957622f83d26","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":125,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"d66848ca-bbaf-4b5a-8934-186ed0e9c53a","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":125,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"b5c13ae6-bbdc-42fd-aec8-af5513fd6cde","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":125,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"375ee7e9-91d9-4784-b6aa-6a8032cebaeb","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":125,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"d78f1380-3542-47c9-a167-cef72aa6392c","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":125,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"c1d59852-dc98-4d3d-88f2-086224fc418e","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":125,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"64322408-0aed-4a4d-9c1f-423e7f14bfb9","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":125,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"7253b34d-d190-4ce6-986e-c41622931177","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":125,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"30e38dec-dfbe-489b-aa6c-94744759f32c","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":125,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"d2eba106-3105-470b-a95a-6646c079ceaf","block_type":"box","text":"of the issuer.","page_number":125,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"6334b240-baf5-476d-8b3a-087e3ea88a74","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":125,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"bd9d228d-d873-4afc-ae05-d688ff3217d9","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":125,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"9418dfd3-9c69-4886-a07a-0b1f09fe2b45","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":125,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"c25e3e83-b685-46a2-81fc-7851aab10078","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":125,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"578ed572-075b-45ed-94ef-edc6e271929d","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":125,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"6f699d17-f586-4d2d-9185-02c14b3d822b","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":125,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"6c008168-c528-4b52-a0a8-33cbf8dc1c2f","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":125,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"365c2a0e-0372-4cd0-a6d1-4d06f4b3047e","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":125,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"008f893f-cae6-4c0e-b91e-d50eb80f9088","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":125,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"d46eac06-89e6-4842-b0e4-79ad3a3824a1","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":125,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"70d03c38-f8e7-4450-8f81-02e3b38508d7","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":125,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"d723555d-0fb3-4934-97de-2e0024b6bbf4","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":125,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"d192e0ea-ec7a-46b3-9dfd-c7f569c2359a","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":125,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"f87aec10-a4a7-4340-b4be-c05b4df4bf22","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":125,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"a90cec16-8be8-415e-94ac-f840f64b8f43","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":125,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"d2ffbcba-5291-4b90-a3b0-db9c54d0eb90","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":125,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"ebb7b10b-0e11-446e-899c-c5d5e580d47a","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":125,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"b28f46b4-17e0-474f-a9fe-c2995088caee","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":125,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"058dcee5-f8f7-402d-b126-37d4ea81376e","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":125,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"d859ffa9-45e4-4030-9264-3caa71f2bc5b","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":125,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"6e43fd95-628e-4e8a-99d1-61ef57c452e9","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":125,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"db05593a-6980-455f-a275-53f07c7035ae","block_type":"box","text":"II-95","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"553b8f97-66d0-4db3-b07e-66844f3299aa","block_type":"box","text":"NM1026U-5978647-125/232","page_number":125,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d19ce93c-4fae-4a0b-84d6-29aa2c1025d3","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":126,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"4a4871a1-23f3-4cd0-a54f-38ecfc07980c","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":126,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"b48854b9-73d4-4fe6-b29c-13bb866ded94","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":126,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"02d6693c-bb79-4e1f-9870-0043af31296c","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":126,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"26a68ed7-0f19-449b-ba5c-ccd3d0dd9a92","block_type":"box","text":"a barrier.","page_number":126,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"41d2b445-c0f4-4fe2-9b2e-f718cc92c7b0","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":126,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"af4bd7ff-a5db-42e3-92ba-32a930bf8f9d","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":126,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"5505da68-d620-4703-b202-331ff46fa191","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":126,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"53fdc562-a303-49ca-a00d-81ffb64b0eab","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":126,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"2998f0a8-71d2-4fcc-b197-66e9b8f8b9ee","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":126,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"0a6d7338-d699-4d0c-9603-2a02e2992c09","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":126,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"5bd49e52-ab13-4778-be5a-a003232c10df","block_type":"box","text":"that operate in cer tain industries (","page_number":126,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"d2f98895-a8f1-4ca3-9861-e7fe56df974c","block_type":"box","text":"e.g.","page_number":126,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"3ca68eb5-4cee-4e03-aef0-f70e693e65d9","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":126,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"b23e90c1-4aaf-4d12-9835-f2268b3f1757","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":126,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"069d6ab4-b156-47af-a286-60c1fea68abc","block_type":"box","text":"e.g.","page_number":126,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"5accc568-01c4-4965-a9f1-e52909c5210e","block_type":"box","text":", with mechanisms such as poison pills","page_number":126,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"c292a93d-8d62-4e97-bdef-39ac904a5bea","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":126,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"2c29fb31-a510-415e-a1c8-171faec06df4","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":126,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"149ca6d2-a7f5-4cdf-852c-9c8c2a3d7135","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":126,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"6bfad3c5-55a9-4c38-90f6-5f6900fa909a","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":126,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"e21389e6-d2f7-43c5-9a5c-482d583bc28d","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":126,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"d44dc2b5-2d5f-44a1-a547-524711045151","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":126,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"0f5572fb-18f1-4c3b-b268-40a279f9780b","block_type":"box","text":"seek to make indirect investments (","page_number":126,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"2e611774-b14d-42cf-80fb-84c57872a369","block_type":"box","text":"e.g.","page_number":126,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"74474c5a-95d5-41c8-88c5-4d22a3abd1f8","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":126,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"d1d6b6cf-f0c9-4e77-8852-0d0394864ea3","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":126,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"21bf00ee-bfe5-4696-8463-00e86c3e59cc","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":126,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"17afbd85-8c32-41ae-8bea-308c91bf4259","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":126,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"be4ae96c-f307-4eeb-81cd-e92927037a33","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":126,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"5ad067f8-6844-49bb-9973-2117819a939f","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":126,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"5e7d3170-8fa3-4cbe-bf2d-b4f4b074d214","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":126,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"4a794344-c615-4ce9-b6e5-a43043270e04","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":126,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"24894966-11ba-4403-a467-57d6518c1308","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":126,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"5a205c74-d547-4c85-ab9f-010afaf53fa8","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":126,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"846de86f-18c2-49c0-bd04-2584269b8e46","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":126,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"69eb2367-099b-4890-8b4f-4c059b7b99af","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":126,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"54b35a7c-9e49-44a2-86af-fd92834d408c","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":126,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"07991b6a-e056-402b-b990-a0d9293a3d9a","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":126,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"876cb5e1-fccf-4603-bad2-b88de1b1024c","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":126,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"09128545-8dcb-4bff-b4e9-30026235224d","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":126,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"40f92f88-3f2c-4f89-97f6-a3aa56b435d5","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":126,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"03478910-67a0-4400-8f68-6ec6d6ebd0ef","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":126,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"39ef9c1c-b6a4-43f2-adb0-cbc4e7887cdd","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":126,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"38451fa3-027c-47ba-abc6-0d84d8b0379c","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":126,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"74c954df-8c6e-4a7e-a320-bc70fa009829","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":126,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"9b355ad3-9188-44fe-a910-f33d215519ea","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":126,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"f4f45ba0-cdb7-4106-87f5-f30953b3402a","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":126,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"14c5ecaf-1625-4f1d-bdef-ab7a6322a020","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":126,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"34561fec-2836-4f23-9a8c-831f44f356a2","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":126,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"9d812e96-e5cc-4062-9fc3-88c99529195e","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":126,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"568b0308-b3ff-467b-b9c0-aa88d17408c1","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":126,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"bd29c97c-45ea-4d2d-9ddc-33bd0cd6bbd7","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":126,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"34fcdb02-3839-4998-8337-56ee028d55f9","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":126,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"c48ba836-1fc8-4e42-98c6-df66e4184f95","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":126,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"57d63e2b-5d6e-46cb-9bc6-71ac801fe4b9","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":126,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"dd4d888e-5615-4bc3-9a97-538c3a31c240","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":126,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"41d175e9-da71-49ad-8a8b-3f8bfef45b09","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":126,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"d117c737-4bb7-4941-a802-81a51f0e063f","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":126,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"b776a781-e63c-4432-99ca-9e53ed4f912a","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":126,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"26871fa5-f920-4055-9dd8-43700ab9f3d4","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":126,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"c1a6639e-3564-45fc-9644-57501168fd31","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":126,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"026b0b70-1077-44cf-beb8-7df8e312b502","block_type":"box","text":"II-96","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2448c49f-8dbc-45a0-92d7-f7f11a8ffc25","block_type":"box","text":"NM1026U-5978647-126/232","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cf235f9b-c779-4834-af57-84548f730c98","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":127,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"15dff0b1-1ad9-4b59-ac0f-51866e13c403","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":127,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"e4b174d1-a7fa-4872-8507-864fe2abb925","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":127,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"c7402685-9099-485c-8f92-1cb483db09a8","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":127,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"7619ef95-23e5-47d9-a172-501045a4f84e","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":127,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"d57e408d-1cfc-47de-ac54-164bc598158e","block_type":"box","text":"strategy with respect to such security or asset.","page_number":127,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"48670578-2e4d-464f-b831-c0b5fc92bac7","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":127,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"99006e9f-e178-4ce3-831a-d5fa688f4267","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":127,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"6ecf7d28-e36b-4fac-ac49-b4df9959674c","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":127,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"80d60909-bd6a-4d9b-8d53-36f8e63d1fe3","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":127,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"46d23a53-7f51-486e-99d4-3ee1b941e9d6","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":127,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"6e58c929-9432-4c49-8ef2-be1ba21708ae","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":127,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"a8e4353c-28a6-44b1-aad8-d340b5bc2208","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":127,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"f5a89bd6-1276-46fa-8361-e9e2af859e8b","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":127,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"854bf88d-01be-4388-9a5a-8fe9f1b9db94","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":127,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"cdb1fc31-e50e-4e00-b93c-46d02bdb63e1","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":127,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"a631a262-dfef-46a6-a788-9a65d5222a48","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":127,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"d7d9b583-cfe5-4cd4-bada-eb9ed0b963ef","block_type":"box","text":"e.g.","page_number":127,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"5ad686e2-4f53-4c9d-90fc-276c5e998b11","block_type":"box","text":", custodians,","page_number":127,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"657309ad-45a8-4c6a-864e-b809f6fbd444","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":127,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"5cc29f0b-2c2f-4f0f-978f-007d0530aa2d","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":127,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"cc67f7cb-9850-4d09-a906-4c1df36eb6bb","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":127,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"62d1613d-880e-477a-8bc9-6efe79ce4824","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":127,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"ddd8e496-8dfb-467d-8854-81392998ef8a","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":127,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"2891f380-c5ef-4611-8a24-5034f8e381ae","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":127,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"c5346255-a980-4bb4-9359-b341fea0bd40","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":127,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"0f5009c3-e191-46af-b168-1ff8d5f30e08","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":127,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"3102f593-ddb8-4f9f-bf5a-d4b5bbd01cbb","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":127,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"71eabf23-e490-4651-bc78-dad0fc03e67b","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":127,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"ae50e028-d763-417f-ae4d-e3c8e69e62b2","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":127,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"85bf6a1f-34d4-4052-8ecb-3dd278d2c0a5","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":127,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"11610af1-472d-4e0b-ad89-c1ddfb0b4722","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":127,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"cfe69165-dcfb-4186-96d9-ebe1588f8f6a","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":127,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"f6c6e3fc-2763-4550-95de-b7297e0db533","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":127,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"84963caf-bb77-46e7-83c8-dc8b94ff9d5f","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":127,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"47bd2e2d-4fac-4ebb-8c84-5ecf91c950d4","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":127,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"a8bd57ad-b398-4bba-9d65-c911204bc071","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":127,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"3d06b555-464a-45ae-9bb4-20acaf7581b4","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":127,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"0019c472-23c5-48bb-9fbd-ff3daad7af14","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":127,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"a0012d39-44bb-4c5e-9a92-d417d4f678e1","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":127,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"e90a8145-b1f3-4994-a38c-acdc34d2d570","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":127,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"565c7a4e-cc8c-4af3-ba5d-52b62d617914","block_type":"box","text":"provider.","page_number":127,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"fc5c18c7-256d-4166-9037-86e5430ab1d7","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":127,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"dcde7c42-1d4f-4a07-b961-8dc4a5e19dbd","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":127,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"87a0e1f9-4a5a-4259-bcf5-b3a1bf36c359","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":127,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"0474d6a2-03fb-4ebb-8dac-c1470742ce76","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":127,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"a0ef1f9d-0955-44f0-ab90-7b01a6b61576","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":127,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"39561c31-2813-4ada-95da-b3a8cefe3830","block_type":"box","text":"PURCHASE OF SHARES","page_number":127,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"e042a97d-fa38-4e6d-a497-ba0b04023856","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":127,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"4de1e490-067c-4ca0-b2b8-158af53f5c3e","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":127,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"f710a3de-381e-4f67-92ca-ac2b3d8c1248","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":127,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"ba34a19d-eee9-41f0-aada-d41dc08be099","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":127,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"6ba9b773-06f3-45bf-bb35-7378d1ba06b9","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":127,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"c56f75c2-2252-44ef-84a6-5effcd1a04a7","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":127,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"677d3571-f417-4e0a-81b4-0e55fe2ebab9","block_type":"box","text":"II-97","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"787728f1-10af-47c0-ba6b-bd7962621883","block_type":"box","text":"NM1026U-5978647-127/232","page_number":127,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"390bd2c5-b748-42a0-97a8-01fd9f0895e5","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":128,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"1cc64b8b-bb26-4773-8b14-5d573bc7823c","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":128,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"0849f17e-5a96-43da-a508-37b98f484461","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":128,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"7ee67d3c-1031-4b10-9191-b3663c2080a4","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":128,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"30a7591c-cd2f-4d91-afee-2e520962c4e3","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":128,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"c062899a-7d70-4a90-9cf0-ffc67b02d066","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":128,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"298d3ff9-5200-417c-b589-427fdeb53149","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":128,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"99d9e10a-6a50-4919-9c5a-e9082b05e304","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":128,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"2cf739a2-d28d-48a3-9dcc-a426edd8232b","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":128,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"632952a5-bcab-423f-bf2d-2ea2ea4b0675","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":128,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"8aab983f-7673-4308-9dd5-ed091e2aa8dc","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":128,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"391cab2c-a8c4-427e-91fa-5c3c607d8962","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":128,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"e568d88a-57b0-40a9-9136-ac3d8e5eab58","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":128,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"9e4c4096-5377-4e8b-8f42-a6f66cb01a34","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":128,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"100605f5-ee04-45ec-a923-0eb871a57c70","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":128,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"705c60d2-b5cb-4684-a61c-c430577c6841","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":128,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"33807242-3f3a-4da3-b8cf-18da4c5bbe32","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":128,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"feb109ef-467c-4d1e-a202-5f4c03e1195f","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":128,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"38781d6f-3f9c-497d-8a56-415f3c73d3d9","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":128,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"76afcbd6-cdeb-4b43-ba7e-9f598a4877c7","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":128,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"4371fd99-be4e-40d1-8183-db6dc91dbefd","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":128,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"b2a5848a-26ad-4a15-acea-0cb22b8a8759","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":128,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"4c8329b6-4f33-486e-a9cd-8d35f40db116","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":128,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"90be244a-d277-4fad-8d8f-753adae2740a","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":128,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"21dc6456-73e3-459e-bc69-bb6cc09ab3b5","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":128,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"153562ea-3b5c-417e-b22d-ce19fd8998d6","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":128,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"65dcc30a-d9bb-4bc6-a0eb-9492a7e894fd","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":128,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"ec50e7f2-75e1-4a6b-911b-76e56e048a3e","block_type":"box","text":"investment is $25.","page_number":128,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"90cae4a0-a8c5-47f3-8002-238b259c2a4f","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":128,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"501130eb-97f4-4649-9681-bd06980deccb","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":128,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"31734ea3-6e4c-4dc1-9116-de076e78c6fd","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":128,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"eee5b87d-f731-43e1-ad19-575a9086021d","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":128,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"86898dfb-a9af-4386-b675-af8666cd496e","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":128,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"e67fb088-de53-4be9-9606-2b3905dbf47f","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":128,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"56584eae-70e6-4cac-84cf-febef85d9a53","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":128,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"cd877465-e6a9-4b94-b76b-9da4ddaaaf37","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":128,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"70a8c272-7f33-4672-869f-9f8e2720976c","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":128,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"0a27fa16-4831-44cc-8cc7-549171535bbc","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":128,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"d17538f5-d892-4063-a142-cd2233e2f4d8","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":128,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"dcaffef2-dd0b-45b2-b3e3-bacf9041b713","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":128,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"45f433d8-728b-4c61-bca4-4aeac25912a7","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":128,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"9da3396c-7577-4327-ada4-015dc4976ae5","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":128,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"a4ad644e-f8fd-4d10-a0ba-fef7667c80d9","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":128,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"4811c7f0-5881-47e8-8cb6-a7ee8dca99e2","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":128,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"6bc31021-1ee6-488c-821e-38ac7c51a386","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":128,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"61f54306-6fb7-4d14-b5bd-1ffb6621a9fe","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":128,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"8422fc18-003e-4073-8198-be33f98f262e","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":128,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"6f63097a-3786-4de2-9a55-a90c1311cf8e","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":128,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"21e4b141-c604-4ec5-9bf2-665e0ef8e5bd","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":128,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"1218321d-9290-47db-b690-6179d56c7eea","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":128,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"f677c48a-570d-4f45-8c66-a5d31cd3ef95","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":128,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"a0579af1-01ee-4216-828b-a62afefe694b","block_type":"box","text":"adviser.","page_number":128,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"0af29985-0393-423f-ad8e-e414ecfdf14a","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":128,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"bc194472-a0b1-405b-8c04-d0ac0edd045e","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":128,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"35e5fdbd-39c3-4e63-a118-b99ea4647652","block_type":"box","text":"II-98","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"12ae4c6e-cdcf-4218-a3d2-07558c8bfc46","block_type":"box","text":"NM1026U-5978647-128/232","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"744fece3-3b5e-4b55-af90-f48adc7e7d93","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":129,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"1d5917f4-58cf-4833-b9e2-4016bb55d085","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":129,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"611454fd-b4e9-4a72-8d9f-ae30dbe48ff5","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":129,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"1ebf4a32-b49c-431b-ac8a-8e2823b2d3d6","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":129,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"9e49a1f0-e5e0-439a-8ad6-0a694e060fe9","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":129,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"570ed34e-436d-429f-b2ea-1fe15ffa9235","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":129,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"7a61c846-e2b7-4c7a-9cbd-948b3bc3ad13","block_type":"box","text":"also be restricted from making additional investments.","page_number":129,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"49d0c695-246e-440e-87d9-3847f4bfe021","block_type":"box","text":"In-Kind Purchases","page_number":129,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"d1180e97-2d8c-4ea0-b7c0-f95c3311e274","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":129,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"b4581a0b-d837-4451-b556-857a221f0750","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":129,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"7a23dfa4-24eb-452f-8f0f-bfdc24e84536","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":129,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"8886a1e4-530f-4c20-b8c7-86bdb82398bb","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":129,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"ae323a12-2135-4c20-850a-31af77913032","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":129,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"3c26907b-40e9-4dae-96a8-e9df48f0f510","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":129,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"53062132-57d8-4eb5-bec5-d341d48a0ef6","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":129,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"833b6402-2d68-4484-b66f-ae77d6612ae1","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":129,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"de93c478-7b47-4950-b1f0-86d126427b6d","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":129,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"d0a05cdb-75e0-4752-9ed2-510897ac43c3","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":129,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"cc639496-0274-4ffd-814a-07aaaf3f8c0b","block_type":"box","text":"has settled.","page_number":129,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"88427341-3c1f-4759-8777-4854e7e5e7e4","block_type":"box","text":"Institutional Shares","page_number":129,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"e2a4f941-0146-4eb2-b5b1-0623e2ab8233","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":129,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"ff1fbd0d-caf7-4848-b5a7-32a89eba4a4a","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":129,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"96021182-804d-4c50-a563-9a9250457a26","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":129,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"f7e00e8f-e3c6-407f-b02b-566f98e8e89f","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":129,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"43150124-c788-44e8-8e60-63b64c03f74a","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":129,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"c2fe7977-6ff0-49a0-92a5-34d14ce1d8a0","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":129,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"2a139669-f71d-4623-9ed2-9e5c41263957","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":129,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"068ec0d4-3786-49fd-9792-2e931aae5c21","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":129,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"2f13aa39-0a56-411c-b175-880ecca709a0","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":129,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"8acab632-1038-48cb-9040-b5facfcf223f","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":129,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"50928e4d-2c9a-4156-a71c-679614c846f5","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":129,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"58328db6-c95a-4e3b-a729-9e5af73e5321","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":129,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"c5626775-b5ba-4883-9e34-bdc32cfa66e2","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":129,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"c9571a8c-ce2c-488b-aadd-06bbcdc2ea28","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":129,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"ea5fde20-ddb1-4151-be17-d8da1f3e7d02","block_type":"box","text":"these fees and conditions.","page_number":129,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"6206a33b-9d1e-4a84-858f-0efc6b72eefa","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":129,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"1f726053-879c-4706-91d8-d574ce229b62","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":129,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"bf85a712-0d85-43ff-b6ea-aa616eb95986","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":129,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"2f52c93f-20a3-401e-b5e7-70fdcd343442","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":129,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"b42d89aa-1ca5-476e-aef1-a1af65b21df9","block_type":"box","text":"incurred by the Fund.","page_number":129,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"6b728b32-2f84-4211-90fe-96463952b337","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":129,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"6b238e78-0dfa-4ffe-b859-874a1d35f455","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":129,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"54d3410b-a526-4758-9c2d-1b3d71001753","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":129,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"02f4a5fd-30bd-4d78-9020-3fd6caa61560","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":129,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"a7d55554-2e85-4617-8817-7b88db1404fe","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":129,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"9f107e21-1da2-48e6-980a-f9a915e3552e","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":129,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"12b0149b-2d66-4618-8179-27fc2adeab37","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":129,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"75e48b84-a818-4e93-8c0c-06576fe35760","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":129,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"b2caa3b3-5cd5-4325-905c-75863fe26198","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":129,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"ef33f81d-10e7-4d66-a5c2-9b25ae62c441","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":129,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"c1954ef4-588c-4a56-b3bb-236a4e4669c5","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":129,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"552a77bb-9648-4308-ba2a-e2c0e30e7796","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":129,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"59c19d39-8e04-434c-b310-289efcf4703a","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":129,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"937fd259-7db3-4d22-bb88-d70fad1c141f","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":129,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"5270e6ed-557e-4128-827b-bc3e58c88035","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":129,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"9884d565-644b-4fe9-8493-59937b4692b6","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":129,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"59940e48-48b3-49f9-8dcf-6a84a9618d53","block_type":"box","text":"II-99","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a784a2c6-d631-4b02-9aff-dab213f7675b","block_type":"box","text":"NM1026U-5978647-129/232","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f6dd9041-a873-41ae-97f3-71aa3f276810","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":130,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"1d014278-cc87-4fb4-b1fb-37007e895846","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":130,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"1197d066-ac6c-4d63-90cd-c8b2d20f5ff3","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":130,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"664ec056-ac6e-4042-a06b-d4e5e356bcb5","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":130,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"d1894e34-ed4d-4f48-ae48-4ef85b18c458","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":130,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"3f898d16-e04a-4935-b41a-f39922b8803f","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":130,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"59bf0f02-f2f1-4ad7-8a5c-a015580e81ba","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":130,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"384f38cd-935d-4bae-b266-6132f346a771","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":130,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"c159313d-64a7-4ea1-b839-4f6f4b6b33a1","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":130,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"da28ac29-531e-48ac-be92-be31ef673a50","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":130,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"a77cfb65-5c7a-47a0-99f0-708134d4314d","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":130,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"69da4e68-9338-4d23-9c92-bf8a9fc7633a","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":130,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"d69b677b-0465-4692-a690-2a55cb9f9bf4","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":130,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"43156373-e9ae-46db-96e4-1f58e95ba781","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":130,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"f329ad15-0f64-4194-bbdd-fb715d7f9fc4","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":130,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"d5573674-08c7-49fa-85c0-1fbece244400","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":130,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"4de81693-56bd-4fea-9227-ff5c10f1f1e8","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":130,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"111af5f5-d384-49c3-b1a5-78f7c23d4b1f","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":130,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"e997f188-6108-441c-ac04-27e6a9994811","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":130,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"998d4e48-7d89-4b15-8aaf-5d88e66e4a6b","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":130,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"07a8ceb2-1cdd-4a35-aad1-7863ad15246b","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":130,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"e8624176-c610-4bc6-b336-72b02ee6a2e5","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":130,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"3ba4c022-f6c5-4651-9252-8c9d16c2cb9c","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":130,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"3d1189aa-7fd3-4c0c-9fd0-e4867b281925","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":130,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"9e80c650-9a92-4e7f-8c93-2bd6a27136ef","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":130,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"069601cd-4e5e-4b6a-b5b6-98866409c66f","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":130,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"0ff11cc7-e4b7-40de-ae34-7559192587bc","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":130,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"7b4f4ecc-6a0f-47ef-ace2-c42b318718dc","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":130,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"2aa817fe-776d-4a8f-9ea9-fa11777ea152","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":130,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"0f822b59-743f-4827-98e8-ef4a987f9b86","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":130,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"56a28ac4-4a2e-42bc-8dca-e8373ee3382d","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":130,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"6064b705-f9f7-4f6c-9836-1081539ec15a","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":130,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"9a6686fe-dd5b-4d76-9212-46b0f5d94dc7","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":130,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"cd77056c-9fae-4ff4-9e0f-042e9bcbc01c","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":130,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"e1bcd58b-a974-4381-b38f-12a0758050dc","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":130,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"d0efb4f5-d41e-465a-80d7-cf61158930ac","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":130,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"9037de61-b865-4143-8d9f-df8f91a9b963","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":130,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"49d20955-21b8-46b6-bd5d-537584fc7def","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":130,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"4713fda1-5fa3-4054-8cf1-8cb272d6f2e9","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":130,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"3b766eae-d42c-40ca-8e4f-bdc22833424a","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":130,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"5b8ae604-c8f8-46f0-8267-a67ec4ebf7b3","block_type":"box","text":"periods indicated.","page_number":130,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"d4c98105-cf5c-4a83-bbba-619349ca59d2","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":130,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"09146039-71f5-4d5a-8ac7-2cb073e7eaf0","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":130,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"0f3ae1fc-d35a-48cd-9f43-3b984fc9c8dc","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":130,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"0e5d7bbb-30c0-47b4-9e73-b9f62dcf983f","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":130,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"d7758168-b7e2-4e8a-8f8d-51812cffbf41","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":130,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"c92fe307-5454-4432-a859-a46d4aa3d648","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":130,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"af63d171-b00b-44b1-adbc-092217f07b1c","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":130,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"8415c057-0c76-4900-be3c-7b3b8131d778","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":130,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"62b3661f-def9-4674-b444-97ab0b4ae6ba","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":130,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"e6d4f296-e958-4b67-8cc5-701cac48cc42","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":130,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"8a04fa74-483f-4bdb-ba40-5a1d018182df","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":130,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"34d47f21-71ae-473e-8f42-6c6822c3ceea","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":130,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"08fd15f9-34c5-4cfc-a085-36064ef79fb6","block_type":"box","text":"II-100","page_number":130,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0d2095a1-5557-45f5-8402-4f2676d48047","block_type":"box","text":"NM1026U-5978647-130/232","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"57ad48b4-16e1-49da-89d0-10b1af2cee44","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":131,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"2816144a-3522-4516-88ce-92625eb58ac6","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":131,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"898c5f47-f0cb-473b-a310-8d2fa3a276d7","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":131,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"1c4d3b00-3e03-4480-b44f-5b41098907d4","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":131,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"780b2146-2c59-460f-959a-a402305df1bb","block_type":"box","text":"Reduced Initial Sales Charges","page_number":131,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"4aa53410-938f-425b-b249-f77b0d6d5439","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":131,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"d818ddb4-e6bb-476d-a6a0-346aa6a705cb","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":131,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"8e41906a-e140-45fc-8ab4-6d2cd6f1741b","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":131,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"f2f5e021-bf56-4d1f-bd3e-5a6b1ba458cd","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":131,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"0b1484c3-0881-413e-9891-6aea87c382be","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":131,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"f202ddb8-791d-4818-840d-8dadbf981d21","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":131,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"f53c0979-d53b-4366-8d68-f866393e7278","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":131,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"3f811b22-fe0d-486e-a2f8-5dd6ac1b96c5","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":131,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"afd88124-17f5-44a7-8522-0f3406bd1dd9","block_type":"box","text":"Reinvested Dividends.","page_number":131,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"765fe237-539b-465a-8e6b-e37962bf6dca","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":131,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"2c5d8cb3-afd6-48fb-a80f-e55f8905a3ba","block_type":"box","text":"reinvestment of dividends.","page_number":131,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"3de24f8c-c28e-403e-913e-09b304a2501f","block_type":"box","text":"Right of Accumulation.","page_number":131,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"11e768ee-e8ea-49c2-9b73-edf081b63cf9","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":131,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"4861dbdf-4da5-45ae-813a-3aa0008d0fce","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":131,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"25bef0da-e331-45c4-986f-9d8d0061b7e2","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":131,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"a7ac6060-a77d-40a8-8758-42907d8f1544","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":131,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"b846c479-e8b3-49f1-8fa2-0e880abc1cfe","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":131,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"5ba2e81f-1830-43df-b5e2-1e168632b189","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":131,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"041ef41d-1d62-4a39-8762-d3e3fdd53642","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":131,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"49c67d81-b096-4138-9794-dcba2264ae6e","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":131,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"9b42339a-9b44-4bbe-a324-c07291d9f057","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":131,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"2b1143b1-2492-4b8d-a813-d05e290622c6","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":131,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"d753e747-2076-4534-a9ce-7776cc493257","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":131,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"647b4e61-c793-421f-b45c-8d8a3e84adcb","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":131,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"5c3b7666-e25a-48fb-9e15-53dbe70f5bbc","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":131,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"684a15fa-5205-4d75-81cb-e4a327ba1272","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":131,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"c51c7d70-afef-4c16-ab7e-6f6b3edf1a67","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":131,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"70417ce3-5a73-4ec3-a685-1f8141022524","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":131,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"26bc764a-4770-4329-9386-e6734cf5cf39","block_type":"box","text":"Letter of Intent.","page_number":131,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"a655884b-26c6-48eb-8148-29192978f539","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":131,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"563d94bb-eece-46a4-80b3-07259c27925d","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":131,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"4df290ce-a054-4315-895b-99cad1e9e99b","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":131,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"7d093784-f0f6-4d77-abd8-cc9587405604","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":131,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"ebfb7b40-c126-4565-9e37-75117bf5d7ca","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":131,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"7e083bd6-753c-44df-95b8-1fbcc9cd3e21","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":131,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"f2f8f927-abb3-4205-879b-661294aad28c","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":131,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"057ed1c5-76e0-412a-bb07-bce648eaa8c8","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":131,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"c3ea2966-ca77-4e79-9b39-a1a6ae949244","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":131,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"89b95acc-c3e5-4ff8-a5f0-350b3fc11b48","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":131,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"cbbd86ae-3311-43ad-aa43-a68312dc8f06","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":131,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"b69f2f14-cfac-400c-b693-c723dd0abb04","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":131,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"c477923e-c427-4a3d-a361-09328224eafd","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":131,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"0db78382-00ce-4da4-9a4b-102748bd0db9","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":131,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"cdc1b680-3ced-4075-ab67-e32213f1e416","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":131,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"7f653a85-10de-4ecc-b20b-07f32fe56943","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":131,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"849c1805-a198-46fc-9d45-44aaca34aa80","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":131,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"99d38b3f-f0bf-4ae1-88be-245a8a7caf30","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":131,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"99017a92-24e0-467d-b3d0-ef7ac3d8238d","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":131,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"0b838c7c-d9ae-4cf1-a41b-e5e9433c003f","block_type":"box","text":"Placement Fees.","page_number":131,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"aee07f6d-da25-4b78-9a8a-750ce3258840","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":131,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"680109af-bb46-4629-a4ca-1e151de7cbe3","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":131,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"8e1ad267-c4bf-42bc-977e-992cecb12fc4","block_type":"box","text":"II-101","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"90309f2d-9275-4575-aa60-b53de4d113ed","block_type":"box","text":"NM1026U-5978647-131/232","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0c7b0ff8-169b-45d1-8188-6ca7be86ceea","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":132,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"4f66dc61-85b0-40b1-b2a8-18114bc08735","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"aa0d2146-237b-4522-8e76-1c55f8c46f58","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":132,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"21f37aef-8f4e-4117-93fa-3af3112c5a39","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"65da225b-7c80-4dba-b59b-0c1d54d75124","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"0a605b44-6c30-418b-85ce-d6e371cf1bb9","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"c62d8011-8b74-4c0c-aec6-4c35462d62ed","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"5be73cb7-acd3-4b1c-8552-6aa14432351b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":132,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"975fd8aa-ca71-4bd8-8ad3-eb351bb9116d","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":132,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"d4acd39f-c187-4b92-86e6-5d0c933faf73","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":132,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"121451f8-c3e2-417f-b178-ad11b63845ed","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":132,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"352d3f83-d0eb-4771-95d0-19fcc018a665","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"e467484b-b6ef-4bb0-a7e8-d18d05376a35","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":132,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"f6f10db5-28a9-4c21-af21-74ca10477614","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"bb1d6953-1297-49d8-8755-04ee773a2f7e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"00a6baeb-3c42-438e-a998-463bd304a896","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"6bb712a0-24e8-4ffe-98bf-928ff1f74b1a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"f8a16b5b-de66-4ecd-8366-29083e5a638d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":132,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"5c6cad50-c4da-4919-86d0-d9e1464010c1","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":132,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"ffc00857-f8ab-4e69-b7dd-5b333f935fb4","block_type":"box","text":"SM","page_number":132,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"0c6871c2-3173-41aa-9a54-a12a0e68a135","block_type":"box","text":",","page_number":132,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"7d0bbfa1-cf78-412a-97cc-a01e0df0570f","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":132,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"6ed45b83-44c0-4da3-9282-ffdd56fdcd2a","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":132,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"f1a7a52f-2e42-4666-8af2-f8aaf2c33ac3","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"bb3c637e-3e3a-4981-bb91-50ba7760c195","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"77c004a7-c794-4160-aaec-3b42425e0b75","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":132,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"3ea17a2a-0b4f-4208-8893-f1af366b3baf","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"f6aba732-24eb-4071-b574-9f8fc05fe447","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"693adcf4-7736-49dd-85dd-6adb9430ab5c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"a8a7558d-e90f-4aea-bd30-c077b479b4f5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"8c23d5d0-7eb1-437b-9cef-a62f56a41ab8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":132,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"3c9a2ee0-123a-44f3-87f9-428773b3dc45","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"2233e6f6-8b49-4c5e-bf8f-320e482dfe0c","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"43646b79-f4b0-4bee-8e86-70f6e8d86409","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"08eae774-bdf1-4b8e-99ec-2621b4e8b03c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"5b4489fb-1f6e-4b1a-9060-d225042ee734","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"8cdd37a2-7a25-43a1-ac4c-58e3aefffea2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"3084fc63-70c8-4255-ade5-76165136915b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"6106761f-f9bb-4a54-a71e-624302178116","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":132,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"79f86b76-c428-4e26-8ee1-240310f1665c","block_type":"box","text":"may be up to the following amounts:","page_number":132,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"01045a1a-a2ff-4f1f-a99d-7dc08d030cd2","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"6f533561-da9c-4dbd-b09f-e730ae10782c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"92c18948-f190-4d91-b568-e45cc27241dd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"7828d8de-93af-4a95-93f9-c72e7ce3e108","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"6c2d0446-dc26-4c8e-bc9c-2c125e0258d0","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"656aa7a3-223a-4784-a341-055276f5183c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"f5cd0db2-11ef-4203-91e6-3de26befe26c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":132,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"5df9423f-fae8-4e61-be23-25eebd3ff1bd","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"435c8c5b-b09f-4c20-ba76-d594151ec97b","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"ec791002-7967-4e0a-8279-1bd6ec9632b4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"2e629006-7e35-4806-b8f2-efc389d19045","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"65f2cd66-1cfb-4cab-a4fb-5d600032c676","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":132,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"cbcccd17-e28d-439a-b7fd-e73fc6c62903","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"27310fad-ff08-4027-bf6b-b107dfb6a398","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":132,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"82a246fc-21d3-4133-95a6-7a80d18fcd9f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":132,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"475d88d9-92e4-4d6d-9257-1d07b7ed0686","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":132,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"4cd91024-d20f-42a3-936b-449ee0084d0b","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"3fa3b89b-f27e-40b3-b349-e822e2cbc4dd","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"3e3e6117-366e-4db2-93fe-e5e94cc9b194","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":132,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"77ce137f-efdd-4b94-b0eb-5221651c96ee","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"bbf163cf-a6e4-47c9-88c1-6576cd59f392","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"310a74e7-ff60-44bc-99ed-25cae3dc9fe3","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"096f54e3-4562-4fe0-ad3d-1e8e53ced314","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"d3d95dae-98d2-4642-8097-a9601ccd5f5b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":132,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"e0bcd6c8-6268-424b-9a4c-d9c3076d1ed1","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":132,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"aa223fd0-8ff1-4881-8593-cc6047f83b16","block_type":"box","text":"$250,000 and above . . . .","page_number":132,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"08b02521-3011-460a-b953-2d80b2ae5e28","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"0d09d4e1-00f4-40ed-83d1-754504e6bfde","block_type":"box","text":"II-102","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"88afc938-0222-4c82-ba3c-50df3d4a9a47","block_type":"box","text":"NM1026U-5978647-132/232","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"25905df7-fca0-4ac4-8b61-a41e4414d1e8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"e1895475-feb6-4719-bc49-3a367b671656","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":133,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"24b98d38-6562-4c0a-83fa-28a548a62053","block_type":"box","text":"the following amounts:","page_number":133,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"e3cf9a5c-3c80-4c17-855c-42debb5cd7b9","block_type":"box","text":"$100,000 and above . . . .","page_number":133,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"56c34da3-0e7d-4036-8ff8-0f3500e7f0c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"582c5a82-6caa-4806-be2d-5daceebfe17b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"6e576e03-c9b7-4e91-b5ea-dd8cb4da3007","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":133,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"2cdbdc5d-0ebf-4992-9d7b-b6ab5d2fad63","block_type":"box","text":"$250,000 and above . . . .","page_number":133,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"559e5431-05a2-4a92-bfc8-d90af93c06ba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"fccbb98c-6191-4e59-8007-de868d1655c9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":133,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"940d344f-1d62-44a9-aa17-221ad9ce930e","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":133,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"df0ae725-0c38-4d7e-b6dc-c025fd39534f","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":133,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"da989819-e52c-4f06-8813-fb8d33b35980","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":133,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"064ab38b-a5f6-4927-8dc9-26f6cddad81f","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"9f02d8ae-231f-4fca-82bc-7772b7d04b72","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"ec2e6fc3-977e-4cb3-bce3-a5997a7ac8bc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"f3a85bfb-38f7-430a-a47e-1e48ceb36b5a","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"9eb8e10a-9f92-41fc-a5f6-92e85b4ece57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"bda8d22d-5863-4f29-9bf3-58bcd41e2fa6","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"1db9bc05-870f-4229-97a0-8bd250abda11","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"6f44c15b-1476-4e92-b074-a155a6824f0f","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":133,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"3672015f-4974-4930-8e50-3744de0c3997","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":133,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"5df80ff9-e59a-4173-b8b3-022f4bb2549b","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":133,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"9401e8a2-2c1e-4f86-b775-325c7ebd740d","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":133,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"d552d7c1-3610-4d16-9ed9-0d69133b0a4b","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"89cf6de3-6077-4006-81bd-68c4b31be50e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"88ef46a4-7aed-4905-9b6f-ca1bd81ee741","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"f0ba0ba0-2cbd-4f99-95be-c09fe7b72a60","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"c0100572-38bc-451a-a188-0511d43307a4","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"71a0be8f-ef06-43de-b4d7-ea4c8930c4bb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"2082c193-cac5-4b36-8356-3b5ab6e8bfc0","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":133,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"735e3ffc-2b21-498b-88ca-1f49bb639a35","block_type":"box","text":"®","page_number":133,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"824b61a0-2532-49f3-bae0-e507253f558f","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":133,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"b820f50b-9d8d-4d2a-9cf1-0b4d290e1795","block_type":"box","text":"®","page_number":133,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"0b3310d5-e763-442c-9eb9-35ff80557023","block_type":"box","text":"Index 2035","page_number":133,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"16c17478-28f9-4079-b628-d48ef2abee2c","block_type":"box","text":"Fund, BlackRock LifePath","page_number":133,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"c76de6c0-d9e0-454e-8761-25864211a036","block_type":"box","text":"®","page_number":133,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"a690d99c-0ca3-4d5a-8f06-fae55eadcf65","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":133,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"c01384a8-815b-464b-9769-522f25da37df","block_type":"box","text":"®","page_number":133,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"b82f115a-cc25-472f-9bd2-7c992e434cc5","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":133,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"735e215a-8408-43f6-a774-d7492d35e494","block_type":"box","text":"®","page_number":133,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"e01635fe-e6a3-41d0-b236-0741cca27fc7","block_type":"box","text":"Index 2050","page_number":133,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"676f415f-c7b4-41ad-a03b-5c20904e934d","block_type":"box","text":"Fund, BlackRock LifePath","page_number":133,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"a807523e-37cc-4595-8ec4-9973fae0df67","block_type":"box","text":"®","page_number":133,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"d49e8dc0-552c-4be6-a4c9-93c484c33085","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":133,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"2b7ce692-9aa5-427d-88f9-83b398bfbfd1","block_type":"box","text":"®","page_number":133,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"deec248a-0abd-4f5d-83af-07394a76a5b6","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":133,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"4da3737a-77b6-485e-b2ba-285e6245c7cf","block_type":"box","text":"®","page_number":133,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"59766724-76a1-4eb7-b547-9849a2cbae9c","block_type":"box","text":"Index 2065","page_number":133,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"641b16be-5907-4694-ac39-5d34f1e8c29d","block_type":"box","text":"Fund, BlackRock LifePath","page_number":133,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"c41a619a-ceb3-459b-96da-1c3cde1931c7","block_type":"box","text":"®","page_number":133,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"24247152-3214-4be6-aec8-7d289499d499","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":133,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"a8d32e8c-6535-4bb0-8cb1-34ccd1e84876","block_type":"box","text":"®","page_number":133,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"1ca817fb-60b6-4a58-8071-c650b68297d8","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":133,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"9974bb82-a42b-4f3d-b4da-e7a044f5391d","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":133,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"88f94a7b-f3dd-49ef-b25e-99ef85597581","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":133,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"6da77444-f471-4a60-bb75-df96a7a286f4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":133,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"3c872906-7f3d-44a4-8427-e39647f8b08e","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":133,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"54005016-f672-4cd3-b7e0-f343b7196bfe","block_type":"box","text":"SM","page_number":133,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"9d674afb-76ac-412e-ad9b-7486fca2cc40","block_type":"box","text":", the placement","page_number":133,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"f76814d3-e53d-4d14-b215-6e4864f11a99","block_type":"box","text":"fees may be up to the following amounts:","page_number":133,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"a85e2a87-3af6-4920-9a80-b4757ef332ae","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":133,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"54d22092-ee46-4c80-b479-967da6d0c73f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"983171fe-3334-4cea-a90e-0a30683f1b3d","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":133,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"4b5ce6f8-539b-40a3-904a-8c29bbcc4e9f","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":133,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"e8c927b6-44f5-42be-848d-d71b683ebc10","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":133,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"809e3940-beeb-4b1b-aba7-9697f166f1e7","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":133,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"4a89f6f2-a641-4836-acb9-78050cc92c45","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":133,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"8fde1c4b-07cb-4468-8d8b-a17468d9a00f","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":133,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"b8ed2357-bcdc-4c4f-b23a-f67bf2931718","block_type":"box","text":"$1 million).","page_number":133,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"1c4f1ca3-23c9-4194-a140-c50e87b7259a","block_type":"box","text":"Other.","page_number":133,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"95a8748e-23a4-4865-92b9-cc0775480aa1","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":133,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"83cd15a3-0c38-4735-a2d0-66a110fd5ee0","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":133,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"c7ac6d9d-9c70-47fb-a89f-38d001614069","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through cer tain employer","page_number":133,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"f365923d-b541-4afc-98e5-815f5010e475","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":133,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"c2b9091c-7a8c-4b3a-9d16-9c144640f697","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":133,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"b8bc3e01-0250-4aab-bbed-7f5fb4f89682","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":133,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"0e9d2574-1f7b-4cc0-b9d8-43a38ae8fe2e","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":133,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"2b35248c-6742-4a5c-8096-4fd1f21f0ebc","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":133,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"1e87a64e-56db-452a-b77d-c8bb199e8de4","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":133,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"b26e3da6-c115-4747-87e6-f6548ad52ff8","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":133,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"118ee616-b569-4675-9f32-9cd985e82942","block_type":"box","text":"II-103","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3fd855cd-33ab-44a7-8573-e5a64a960bc4","block_type":"box","text":"NM1026U-5978647-133/232","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"be0feaa5-062b-40b1-861b-36307e6c24d1","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":134,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"5e3bc388-6132-4f3f-b832-9f35f3498dd0","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":134,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"3fa7d2b6-ff2c-4677-878d-f4eb5b66d3bf","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":134,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"e76de830-677e-40f8-b3cd-d1dde85803b4","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":134,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"ea0fc22b-8e95-41fa-9c22-1c58f1519bd5","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":134,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"6c5a0e34-6a70-499a-8ade-a25bf3c2600c","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":134,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"9271bcdd-43bb-480e-812f-27250938c3c9","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":134,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"257b23ee-4307-4c13-a46d-db57ad2b8669","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":134,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"193b13d5-8831-4109-90f3-0c9998fcd5de","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":134,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"80fccd30-c01b-4baf-9245-801a4d53adb9","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":134,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"af595435-949f-42c4-bb28-c641420bd410","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":134,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"24ddde5c-514e-46dd-9572-71c730a805b9","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":134,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"09ada192-cdf0-4c12-8b40-0582060bdfbf","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":134,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"f356bbae-f58d-4b4e-b31d-98d32a1d7460","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":134,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"0e2ff4cf-279e-4c58-9f65-0a5516859845","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":134,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"0a0b814e-7522-49c6-97e4-ace2f5b2ee53","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":134,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"0666fbc1-35e4-4ba1-b47d-7546eccaa97b","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":134,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"c26f6dcb-99f7-4c83-92c4-1aa2c8c63357","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":134,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"254f1d57-4b5b-4f02-a892-a08add0ef23b","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":134,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"2ebc1554-1851-451b-9c8d-63fbe7db9731","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":134,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"587eb766-f1e0-4fa1-8165-f0b20f7cd6ee","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":134,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"446374b4-a56c-4df8-9459-2696652a0a18","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":134,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"90640e74-0055-4f72-90c9-a2bc606c3963","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":134,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"1025ba50-c8a5-4ea9-a901-dc83d1f20922","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":134,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"8ef8ef81-334c-462e-bcae-bd89f5ffb406","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":134,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"9337df8a-7d52-41e0-b2c6-5342714f0d96","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":134,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"5e1cd7bf-c6e8-423d-a461-21965b44f7f8","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":134,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"180ade10-7648-43b0-bf36-8a144645da00","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":134,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"1964cbe2-466e-49e2-8748-d226f4c460ca","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":134,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"2c50fd74-42cb-46c6-9e65-a4975216a500","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":134,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"87c53970-083e-4836-9ec0-e767cac2d81d","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":134,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"00ef6e0c-d13d-49bc-8b94-eca95cfec86d","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":134,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"54481e05-77a4-43c9-a769-84c692c1f7fc","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":134,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"f77770f5-5101-4a45-93b9-2ed238112cf0","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":134,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"a14548ae-cd9a-46d0-8972-4e7ca7e987e9","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":134,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"ebc49238-012b-4d03-9634-7546c82dea5f","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":134,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"38a4a6ee-b9e4-48bf-b4a3-21198e72e4c3","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":134,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"e6ada63c-e30b-4784-a750-900c82ccb98f","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":134,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"c7850c72-e8d2-4906-806d-feb3358f409f","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":134,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"97081d95-7ed8-445c-adc6-cf40a1f577a7","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":134,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"d66c5106-cbbe-44b6-b0c9-03173c610a63","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":134,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"b0233139-2299-4969-8729-fc3d31dc4e75","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":134,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"e14cbe12-5c6d-4c73-961d-d33ad6834671","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":134,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"971cfd08-19a3-4e84-b77b-106acd5a42a6","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":134,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"dd5ececb-dd7e-493e-a0a9-6b82f99b3cda","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":134,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"84ec7616-6c44-4ae8-9170-b05e9c0ea4a4","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":134,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"acb89508-e033-453e-804f-c9234b612135","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":134,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"7055bb3f-8f56-409d-831d-d1d2307b14a7","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":134,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"f30a5c0d-8b7a-44d6-b34a-302cd28c3ab8","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":134,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"92850715-81b1-4d4d-919f-11abaebbfb3f","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":134,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"8c323d3a-6413-41ea-9f77-5330bd76f860","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":134,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"f40a33a7-0ddc-4ba6-ae04-0a1d5038a0ed","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":134,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"8a747714-8458-4835-a7ed-853082b960fa","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":134,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"e5c48b74-2975-4580-a65a-a8e6bfd774d2","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":134,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"71f46e5e-11dc-4877-b79b-df1b16ff224d","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":134,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"a335c4a8-4c47-4fed-aba4-566b89f87316","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":134,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"85e0e4d1-e91a-4746-b7ac-7496a271921e","block_type":"box","text":"II-104","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c16c12a1-d92e-4513-b283-90536995fc65","block_type":"box","text":"NM1026U-5978647-134/232","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6eb8d070-e9ab-4d59-a9c5-6dbd9c0b869e","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":135,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"ce9d4e26-e18b-4faf-846a-d929916ab8f4","block_type":"box","text":"the absolute discretion of a Fund.","page_number":135,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"a95c1c26-bc47-467f-8af1-f8ca05d5019f","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":135,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"8c96b0ff-9be1-4e82-8761-567d37ecbc88","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":135,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"434d2007-a0a4-41a8-9ca4-16000565df1a","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":135,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"3a13d3ec-b0ae-4bda-95c4-cfa4e1d1fc5e","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":135,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"cbcfeeee-05f4-4fb4-820c-9006a3556cf7","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":135,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"a6260cbd-f881-46b9-844e-67e4146d378c","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":135,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"f126f370-b5e1-4d4f-9170-9af2e723b85f","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":135,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"0943a845-cd7b-4688-b19d-b80c114028a6","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":135,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"49b78dd8-790f-4ba2-8fa2-94d8f6fb6ddf","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":135,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"5e677655-0a73-4d0b-bbff-af3df81af49d","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":135,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"bf77e113-cc14-47bf-b61c-ed3b6f2fcd2e","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":135,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"a5f5a788-49ba-49e3-9f37-13c6d87c3ff6","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":135,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"5498908e-b141-4f14-9f10-7da5b5fa3732","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":135,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"c66a3bc0-d837-47a3-9590-8e7a177032b5","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":135,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"29dc0824-6b89-49fc-80f1-77e2fd9ab499","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":135,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"173979d2-9479-4f95-aacc-2316a397b945","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":135,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"47223f65-86f5-49cf-84df-7a975867561c","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":135,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"5ae08ded-a0ad-4d1c-a2d0-18f0b9923c00","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":135,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"ab065849-1f76-4e09-b0e0-c7a530fb533a","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":135,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"2990b72c-64d7-46e0-bd2f-96fc4d49f209","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":135,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"c9a9dda3-28dc-49ee-b697-78edf125293a","block_type":"box","text":"public or private investment company.","page_number":135,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"092bdd6d-d7c2-423b-ae3b-ca24fc949a7c","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":135,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"a8e2dc16-f035-4b52-99a7-dbf95b06bfcf","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":135,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"29cf2226-676a-493a-b764-48e899433400","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":135,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"6f543365-e199-412a-8be4-9b20f8b61653","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":135,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"7711a04a-6d70-44ea-9276-d9f27e5c067c","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":135,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"34fd8034-76f0-4e83-8b8c-3cb103134456","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":135,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"96a6ede9-345c-442d-8656-c36ecddfe9ac","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":135,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"7fea6535-8a03-4e4e-80d8-c8c437c9612c","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":135,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"dab4cdda-48f4-4a73-b88b-4a5b28f3d03c","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":135,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"fec1dfb2-55ad-4f7e-bff7-c29a8def8588","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":135,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"773d0cec-f09d-48c7-8526-adda0581c28e","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":135,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"3f9ea6ac-f694-42d3-95b0-d7938a5bb03d","block_type":"box","text":"intermediary associated with the account.","page_number":135,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"8c9cf47d-eb77-4c80-8de8-952dff3ecea1","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":135,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"9ee11dc6-dd22-4e20-b56d-25427f3ed9a9","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":135,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"348b306e-392f-4eee-bdc7-68bb32ce01ce","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":135,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"98aa8ff7-91f6-477c-a745-4acbe5a0534b","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":135,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"9f65d9f3-6560-4c6b-91d5-174377ae4dbb","block_type":"box","text":"CDSC shares.","page_number":135,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"36ca414c-95e3-417d-80e4-386d5f89f91b","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":135,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"462d41b1-e2ef-4e0c-9595-72af1c7d6a8e","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":135,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"bb26dcb9-4493-470b-bf9f-6dc4d1725fce","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":135,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"299c0dca-5fe4-4326-8a27-4755a9cf8fb1","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":135,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"8a28964f-b788-4fe3-9c11-f77e15a37093","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":135,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"466a6cc3-80d7-4bff-be5c-e682c2c8d0da","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":135,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"87e7f3b1-f85e-4ff5-befa-2bfedc29f8a8","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":135,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"0174924a-4da3-4619-ad9c-4812bafbd4cc","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":135,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"8ef2ed18-047f-47af-b9d5-adefccea12dc","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":135,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"e9612b53-cb7b-4c06-a17f-7b961d09544b","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":135,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"2f6b8b24-e93c-433b-8a8a-11d28eed5497","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":135,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"80d267d2-ff77-48ea-8e0c-046a35c3276a","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":135,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"69f5b034-ab3b-4416-96f6-4aae5e4fd233","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":135,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"066e2e98-d57f-421f-8e58-7980edc0cd1a","block_type":"box","text":"II-105","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ef99d7f6-b276-4306-9e25-a348c29e5856","block_type":"box","text":"NM1026U-5978647-135/232","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"26b811d0-0f3a-4cb7-824d-c5e4a42019bb","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":136,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"1e89187c-cc30-4faf-8de3-d17713b303be","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":136,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"6f4edc19-45da-41df-ac62-810b04e5b82a","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":136,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"314c31ce-d016-445d-bf5a-a8ea638f1e0c","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":136,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"2589abc6-47d5-493f-9f56-9b91d52b485e","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":136,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"51e03b01-9567-41cb-a8ff-954f5d6ad159","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":136,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"a1569c83-f149-4e57-91f7-16f29a97f131","block_type":"box","text":"Investor A Shares.","page_number":136,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"b0d074d7-bb2d-4515-a949-3981fc0336f7","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":136,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"b6f49dd4-f355-4e0a-b360-672ef3b08c84","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":136,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"1f5f6510-44c8-4a0f-a34e-be178fbc3d31","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":136,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"579b8a88-0a12-4107-9ed7-14d34ffa8234","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":136,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"834237ed-ba0b-4ad9-8652-b20322a4e24d","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":136,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"39e9cd71-bdd6-4673-b03c-4c07a052f65d","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":136,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"f7547e6f-213f-4323-80df-3224969c6d98","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":136,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"136d2619-6dba-4747-a982-a63b7867fc94","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":136,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"abfa2786-aeb2-4ac6-85a4-58e733faa888","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":136,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"7109e9fa-1cb8-4243-b298-b774ba8d9c3b","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":136,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"2655c1a5-ad22-4a25-a408-dec3d2d705b8","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":136,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"ec87c8dd-da76-4ace-8846-7d0892865ee8","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":136,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"834ad943-ccde-45b2-a1fd-852279147b5b","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":136,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"6d1f1d0c-a42e-49bf-9ff0-91ce4a23f3de","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":136,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"8ffc5646-705b-4113-920a-8533ac0430a9","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":136,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"6140ff1a-3382-49d1-809c-41cc388e6d58","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":136,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"d2355fc7-7ebe-4a4c-93b3-e95af704c8a6","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":136,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"b442e580-a2e2-468e-95fe-618ebff789ee","block_type":"box","text":"“Investor C Conversions”).","page_number":136,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"ef32d679-2537-4a0d-a52c-9adc76b76bf4","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":136,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"8751801a-3e70-49f2-a84e-a031d8bf2678","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":136,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"479dccf3-bf2a-4bd1-96ee-66aadb77810f","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":136,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"f132feda-6373-4362-aefe-57609bc0938c","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":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"89dcfe4f-c0a2-40c4-968a-95d93289d704","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":136,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"ffa9ff49-4f77-47d4-8da6-270d49e2f0b2","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":136,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"564b0215-1378-4af4-a4e6-243e2a38ace0","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":136,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"fa3034e9-7164-4889-9169-bef9c5972886","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":136,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"883829c7-7020-4e59-9aa0-f7ef3b4e38c6","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":136,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"075c6db1-d83b-42a4-8f99-c7373371cce9","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":136,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"c7e0ba5a-1016-4fd9-8b60-9b0e89a90669","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":136,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"7c3beb63-6a7b-4d5a-8015-39ca52429ba9","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":136,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"1f543452-d0e9-4523-92f5-2e3393035ce9","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":136,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"1ecf054c-c2ee-493e-9994-406108dff1f2","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":136,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"a7d62162-0dfc-4230-9814-3f970b9bc736","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":136,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"97941562-24ed-40d2-a1d5-825acc49e6da","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":136,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"e3fcd429-3922-4234-97d7-6c4c091ca2b9","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":136,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"ea6d8946-32eb-482a-ae65-c5ef56387c95","block_type":"box","text":"redemption.","page_number":136,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"743be3d1-a392-4a28-90e8-51a0f0998296","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":136,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"59b3cf12-d41d-47df-81db-d164f062c576","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":136,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"f978e604-a81c-4b4c-91b8-db5873a1d5d4","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":136,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"2f058c0e-8316-4e31-956a-a880592c5663","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":136,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"9df68e37-da61-4199-a029-c610f2aac4c2","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":136,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"710f5aa5-7a13-4691-a531-62140079c72c","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":136,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"cb85459b-2f32-476e-ac8a-73c2065cc41a","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":136,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"4a24fa09-b3c1-471c-a819-126698dda191","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":136,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"a7c97421-a934-48a8-8be3-53b8b1a6645c","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":136,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"f6eb3ff3-8882-4892-ad64-dbee72b4e3d2","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":136,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"158b857f-1787-4730-ac30-f6a6fab244a2","block_type":"box","text":"II-106","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"07596e4a-5dce-4fb8-8c13-124a95ed1b78","block_type":"box","text":"NM1026U-5978647-136/232","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fc77d5af-0624-420b-ae44-ff58e9453c37","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":137,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"cfeb5adc-fcaa-4467-90b7-bc1851bbddca","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":137,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"a5b0dbd4-c02d-457b-93b6-f82500e3ac3a","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":137,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"4a2c5e27-1867-4425-a5a1-0273ff4a98fb","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":137,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"cebab40a-70eb-40d5-a5c0-ec2da2742b10","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":137,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"94f5b88a-a63b-480c-afe7-657c0b060e06","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":137,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"5c9fefa0-f773-49c3-a715-5f9541347e52","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":137,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"bd2f1401-f212-4a97-9328-2dfc65e66008","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":137,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"8fcbcdd4-0c9e-45db-953b-9d13b6915f70","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":137,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"9bbd00b9-4d16-4b4d-bf6d-e65e187f5c42","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":137,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"dede1bbd-9d7e-46ca-909e-27d4eba66808","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":137,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"40f0c439-2de0-4c85-9a68-5879ea48a413","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":137,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"b9f9c13d-6a67-4c1a-9cc5-680e2e11f06e","block_type":"box","text":"Class R Shares","page_number":137,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"91edc1e0-8293-49fa-bec6-ab393ec32434","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":137,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"b15f74dd-f4f9-4ac8-a39a-fdcc15f96ff7","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":137,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"3d2978cc-2f90-4a8e-b5be-cd0f7a508c21","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":137,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"d547721e-6751-4492-b590-6e5818281adc","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":137,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"0cea80e8-925e-4b15-bbd0-0b042bd8359c","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":137,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"d4314561-ddde-46e3-a5da-aa3d6fba9b17","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":137,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"732f2356-c77a-4c0b-88f8-1d2ed7215ef7","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":137,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"c4450969-9e4e-43cb-afbd-59dafd66b568","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":137,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"0a8a1562-f8c3-46a2-ad7e-b904defd9dc0","block_type":"box","text":"Class K Shares","page_number":137,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"61a7565f-6ddb-4340-8ae8-78784addd085","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":137,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"ed0e69dd-4a56-4642-813a-dc46fa4ba7b8","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":137,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"68180335-263c-4108-87d4-40417cf82895","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":137,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"1f5781a9-52e6-4d55-9fd3-5df2531ff68a","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":137,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"d2f5cea5-f558-43ee-b814-df3ed213713a","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":137,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"55656d73-fec7-4839-8a26-ddf83673e8e6","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":137,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"9c99042e-b545-4249-9842-38f491d86484","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":137,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"cd2a14a1-a2eb-4222-99eb-70fb8428c7f8","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":137,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"b92f96ba-7af1-4685-aa71-28f9c0986d9e","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":137,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"394be712-4055-4d9a-825a-e27f3f5b1849","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":137,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"2d2189c2-e93c-44c1-aa5f-fa584da3e50a","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":137,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"401c1ac4-2576-4df9-8141-7257c22a89cc","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":137,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"4ec552a6-7df7-4b1c-80d4-24dbd40fee71","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":137,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"c5e28172-5d0e-4570-b2fa-246f205c63b0","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":137,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"00a9c077-97cc-4df8-a9ee-242ea14a549f","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":137,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"2a7fbfe5-2fe5-4a31-898f-d297d38cd5ab","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":137,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"5540ef9c-d3d5-4120-b009-586c82e21a61","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":137,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"13ff7535-edd3-46e1-aa9d-e349a0b22652","block_type":"box","text":"distribution and marketing agreement.","page_number":137,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"cf8a1708-a4c6-4b6a-b5f6-c9ccabb796bb","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":137,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"ec70e76a-9cda-4e61-b537-d46a861e0f82","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":137,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"cf28e94c-6b42-4081-81ad-f8381cb7a055","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":137,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"160ed0d8-27a0-4393-8d6a-f6a9e3936404","block_type":"box","text":"Class G Shares","page_number":137,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"badec13f-0b19-40bc-b07a-149da63b17e3","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":137,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"45550e3d-5b27-4e30-b3b8-a1893e2bf082","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":137,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"5f9ced64-321a-4c77-b0e4-608834b97e58","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":137,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"94ead5d4-9509-4027-8591-dc60aae26655","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":137,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"06ecd538-5263-4ec8-b4e7-f59022375c12","block_type":"box","text":"eligibility requirements.","page_number":137,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"25f90dec-e371-48fa-89a3-eed55986bd1d","block_type":"box","text":"II-107","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a1378442-381b-439c-b8b7-7280fc2af066","block_type":"box","text":"NM1026U-5978647-137/232","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0ee0163d-b7ac-4acb-ab79-4ecb05351c6c","block_type":"box","text":"Service Shares","page_number":138,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"bdd83e13-7aaa-4d3b-be2c-79a0d2ca9c16","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":138,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"723fc02e-ce70-41ae-9fbc-a851e9fc7d30","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":138,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"31548429-f881-402b-aa36-c74733fcd29e","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":138,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"076e8ee2-dc63-4063-9691-70b423ae305c","block_type":"box","text":"®","page_number":138,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"f2661cd6-874d-4bbc-89ac-5fb0653fd269","block_type":"box","text":"Fund in 1996; and","page_number":138,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"e9bcfe86-ae0f-4582-bc99-75d6edbd5bc2","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":138,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"0a1187dd-be10-4b2a-9aa8-642e24f05b4e","block_type":"box","text":"SM","page_number":138,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"68170d19-9d87-41b7-8165-3589bde02431","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":138,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"a7ca66d5-9faf-4fcb-b2e5-06e68a9fb347","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":138,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"02c4d304-5bdf-481e-a67e-97850265038e","block_type":"box","text":"BlackRock Shares","page_number":138,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"e0a65919-a53a-464a-a9f0-69eb49b2e5d2","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":138,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"e7e6883a-695d-48b7-b0f7-bef7ab094549","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":138,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"e2e843a3-802e-4cd9-a118-c1f117d3c773","block_type":"box","text":"fee-based programs.","page_number":138,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"9203e9c7-ca91-4e59-817c-6d87f5158f82","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":138,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"c8e5f570-6887-4460-b1f7-48ed9d1ad15e","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":138,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"eed85067-6fed-485d-8304-fb14118e18db","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":138,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"45c76c10-da59-4dc9-9bdc-637d62ccf1db","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":138,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"b746b22f-86e5-4441-8059-74d7580b845e","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":138,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"601ddaee-7318-4ba1-a1f2-ed478798dc66","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":138,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"f37ab0f1-8838-4789-8718-eecf25422ba9","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":138,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"bd38b485-fe7c-42a2-a05c-8aab313bbd77","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":138,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"f09770fc-a8bb-4540-afa9-b9502beb9949","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":138,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"e248dae1-09d0-4caf-a7d3-f08e47bb378f","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":138,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"3e58b971-3607-4ff1-a4a1-651f9f48fe4c","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":138,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"aa49252e-ab1e-4dbe-bd6f-0035d2c809fc","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":138,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"09fb28a1-31e2-417c-b640-f2cc7641d669","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":138,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"7c4621d7-6d8e-4f8b-97db-e7c45fff46b8","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":138,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"8380b933-0148-4a4d-b030-1d1b048b7d36","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":138,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"0cbf0ab8-af37-45fd-8758-3bceecc59a74","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":138,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"1a73cfda-e85b-411b-90d5-cd37092b0ca6","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":138,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"8a2e369c-c707-4262-ab5c-4ed8b0c6cc35","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":138,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"88e392d6-af9a-4e7e-9e90-854ee43a8a5e","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":138,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"124a582a-6226-49ae-8f2c-a6a21f924f72","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":138,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"23ece18f-3864-46f1-8657-ef7f38030d4c","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":138,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"83c8c792-529e-43c2-89c3-3b4fe233a8b9","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":138,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"27d7ea44-ac23-47b8-91c7-b59a03d7da03","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":138,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"b48d86da-9701-406e-a30b-e9b7da35f284","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":138,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"6cfc61f8-5aea-4a46-a86b-9b9f834a9f6e","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":138,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"5597db2e-34a4-45f6-bb13-382d0bd193cc","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":138,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"7c20721d-e79c-4b98-9621-af2de6af5f83","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":138,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"e30992e3-68c3-4c25-a8fa-06ca70a97d9f","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":138,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"a33e1c10-c6ed-421b-9818-2d3b24ef923a","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":138,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"abe7a72a-738b-40ab-9bbc-525ad4cc7516","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":138,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"552915e1-1af2-465e-bf49-c7f195414aa1","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":138,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"b02128df-00ae-40f2-824d-5044a671b89a","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":138,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"1132d775-d3c9-4a39-bb27-d5e331bee021","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":138,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"262d2082-566a-405d-adf6-fdd7b33a21ef","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":138,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"ce453c35-0dff-41b7-adb4-c9489e3b1962","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":138,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"19229a81-7964-4363-9c13-4546ec918f91","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":138,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"6fbe04cb-265f-472a-a7b3-62216633f3b5","block_type":"box","text":"compensation for selling different classes of shares.","page_number":138,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"e397c7c6-4903-4783-8bb3-e30a6811f9a9","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":138,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"586f5b9b-f8a5-4e0e-97bd-4514a0f8d8ad","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":138,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"0f79e12b-8776-41e2-8b36-2655edc8b0bb","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":138,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"13c71d1a-fff4-407b-b6f6-5dd5f2f3129c","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":138,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"b9b534a2-2f4f-4895-8061-f67fdc49cfb8","block_type":"box","text":"II-108","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ab204b41-1edd-492c-b811-6f53e2c0781c","block_type":"box","text":"NM1026U-5978647-138/232","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a6a34d8-f216-4236-ba0d-de1613e5c2f1","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":139,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"3881754a-48b2-43c8-ae99-922933b21fe9","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":139,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"4a25eb78-bf17-4985-a06e-9165c7d0eb48","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":139,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"a4a01c48-ed05-4edb-87a5-06e6a350a3a3","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":139,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"ece0573d-bd90-4b28-8fa7-f83ba8d1b437","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":139,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"b394b250-d82e-4c0d-ab77-a50753cd7775","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":139,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"f8465881-e2ad-4d59-8d3b-defb9c6d1110","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":139,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"fc27b07e-294f-4acc-a0aa-4cfbfd55e9f8","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":139,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"feab5456-dbaf-44dd-b1a9-3f7f236e7ad5","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":139,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"a6e0c9b6-a704-46e8-b115-98b39714dab7","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":139,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"5e4fa47e-e9b2-437e-953e-0105025e6555","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":139,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"e1b33b62-bc5d-4578-850c-f98238068df4","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":139,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"4b6d0230-e691-412d-927b-9d7be33602c0","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":139,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"eda2a55a-d119-4400-bc6e-b8d47f41b2f0","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":139,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"53e7d0d0-a37e-4ca5-b499-1a0843b6fd59","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":139,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"a7802b80-2048-42cb-b2c7-439b1bf78f0e","block_type":"box","text":"easily accessible place.","page_number":139,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"c54ddea5-04ef-47ba-9099-3d49445c1f43","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":139,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"4446bbc2-3234-4deb-991b-058c83b78ddc","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":139,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"0da67fdf-12e6-4666-b53f-51d6ff7ec632","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":139,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"2e05f712-e8c5-41e6-b674-cd99e470dc2d","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":139,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"d0a130a8-ed6b-4d2e-9a5d-2d3c9a6641c9","block_type":"box","text":"fiscal year.","page_number":139,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"bc8a1bf9-d262-42e6-8422-1789fb57df52","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":139,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"eb906719-fb24-434f-94cd-fc536bc5cd7d","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":139,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"e29229d0-4b6e-4471-99ff-fe7da7016ad6","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":139,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"4c73643b-3a87-4db2-9238-35e8ffde3492","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":139,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"c28b4b70-f53d-457c-8f92-dd05d2294552","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":139,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"b426d315-8534-44b2-bf0a-be1a8aad8697","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":139,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"47d229dc-2621-471e-b962-f0324f204b46","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":139,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"2efefe5f-29c1-4b43-8a5f-d7f0a1a0ce71","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":139,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"4d6cc7a3-0f15-4cfe-8aa0-cf06ab90e6bd","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":139,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"dacbbf43-e0bd-4057-a8fe-3d06b94fe585","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":139,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"d1d64b21-864d-4acb-96d4-43694ce4c809","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":139,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"6adea60f-e950-47fd-9d1a-3cca37941910","block_type":"box","text":"and Class R Shares of your Fund.","page_number":139,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"d48d70de-667e-455e-b63e-3e5780706623","block_type":"box","text":"Other Payments by the Fund","page_number":139,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"4ee46224-cf44-445d-ae65-99db617b3978","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":139,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"3e5a40ef-6640-4e6b-abcf-5436b42b3699","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":139,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"c8b82428-121c-4ec2-8414-8ccb9d9b6eeb","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":139,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"197d3bee-49bb-4154-9c70-343b59e3c1e6","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":139,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"96033d66-281c-4e61-8854-4b923c315f14","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":139,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"dd9e4405-253f-4126-8108-f8342c7d94ac","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":139,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"bdadf324-1d6d-45bc-8548-d44f4f90a946","block_type":"box","text":"of these payments may be substantial.","page_number":139,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"4213ea53-94b3-4b55-92cc-7cecbba6d5f6","block_type":"box","text":"Additional Payments by BlackRock","page_number":139,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"84389e36-c604-41fb-a62a-1d5eea2c6888","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":139,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"a0660501-e783-4275-8435-4ef03c08c1ba","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":139,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"ff865ecd-5795-4b45-b6cb-ba5a52489dbd","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":139,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"77c2ff37-8ccb-420c-b978-0e21c590136d","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":139,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"323c020a-603d-4897-943b-1a01988ff5be","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":139,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"e02d4679-6458-4ecb-acc6-1cbabd9a569b","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":139,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"dbc53061-05f7-43a4-9940-de556f1ff4a5","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":139,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"11bf685a-55a2-43ff-bfd3-dc1bb2a747ad","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":139,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"ad74eb1f-c66d-43a3-9597-ec18608e8a9d","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":139,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"93e3a7a1-0cae-4cc8-a5fa-70fa01d8e0e5","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":139,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"8601aac1-90c8-48b3-95f3-8acd0bd8528f","block_type":"box","text":"II-109","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"16451228-e524-4b1f-94d7-5e3581d53ed8","block_type":"box","text":"NM1026U-5978647-139/232","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fd2e470f-a663-4581-9fe9-bf8534bbf891","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":140,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"06be5309-4050-40c4-bfe0-d7feee246cd3","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":140,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"d0e22948-b615-4222-b4fe-bb68d6ab8144","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":140,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"82be8f8c-a2d1-4d02-9009-9d7388965392","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":140,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"e3a14ac9-4661-4a7a-8935-872b51a0de66","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":140,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"90e2bd76-d57e-4515-ba5e-5a299a7d909d","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":140,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"7cc7fbd8-73e4-4fc4-b5b3-89044e98943d","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":140,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"9cded5f9-37d6-457e-95c5-25b73e5dc0e0","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":140,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"420ba310-4e12-4642-9826-de866ab6f8b4","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":140,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"94ca48f2-5c34-49b2-bd3a-6b68c76741aa","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":140,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"c8504009-ba1e-4e1e-af21-ec749de55ae5","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":140,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"0045426c-1236-40e3-bf72-e3e290c87996","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":140,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"9f493649-03e3-4589-8d97-99bd510511ec","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":140,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"bd22708c-bdad-44af-a1dc-4eba1d2f9eca","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":140,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"c5de1aac-3124-494a-8546-646191954b84","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":140,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"b7ca7839-85b8-4803-828d-bba5ad1998f4","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":140,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"d7af95c0-357c-4446-a4f6-499eef9a3c02","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":140,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"4a76c8ad-8728-4668-8993-580486649131","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":140,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"96fd562f-5902-424d-93b1-bb2b098d8e6f","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":140,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"24242e37-65cc-4906-9d13-b29dbbfd87d4","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":140,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"25429e09-1701-4d8e-9482-e4dbf0d95650","block_type":"box","text":"Funds.","page_number":140,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"2d80429b-6ef5-471b-944f-7b9dd9f27a0b","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":140,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"a1cd2bb4-a690-4cad-ab71-6413cbe93058","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. 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BlackRock","page_number":144,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"e0ee14bc-d692-453b-9a1f-80c964ca5a35","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as par t of its customary","page_number":144,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"352df76e-b629-4b3c-b780-594d4a66e5f9","block_type":"box","text":"digital marketing suppor t and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":144,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"6669b7c5-27a3-473b-bc48-9a2c12727995","block_type":"box","text":"traded products.","page_number":144,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"a10e0a1a-8f2e-438f-8030-66b438d2bf90","block_type":"box","text":"F. Conflicts","page_number":144,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"ae2ce07d-275c-4241-b424-79391e9dc36a","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":144,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"97d5f840-bf10-4f7c-aabc-35b6b24a43c9","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":144,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"ff2193c9-8b3b-4d13-829b-5a540be70797","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":144,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"d23fa3d4-2b36-45ee-81e9-5c323f9c6f28","block_type":"box","text":"Additional Payments and other incentive arrangements may also be impor tant factors in the Service Organization’s","page_number":144,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"981511d8-5ee1-440b-a9da-259033e77ed6","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":144,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"fa831d41-4475-431a-9496-1b38a83d398a","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":144,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"d39cc419-62b6-4969-b5fe-3eecae061aa3","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":144,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"096b518e-c3de-48f5-affa-33b20e2415b9","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":144,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"dd70a539-048a-4de8-a0d4-dc2420f7c38c","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":144,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"a5015655-e0cb-498a-9aac-dc58ab89985f","block_type":"box","text":"Service Organizations may have financial incentives for recommending a par ticular Fund, share class or fund","page_number":144,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"c1e3ccf3-5a19-445e-8dea-236726cd2643","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":144,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"6a16d3c4-4d0c-452c-b377-0e1cb53aa820","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":144,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"3821270d-4d6f-4578-be72-11e960a24777","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":144,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"78cf04ba-5905-49d6-ae27-cd2065b55645","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":144,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"ff9343bc-d821-4fa1-a6dd-673170a117ae","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":144,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"bf59aeba-8d3e-4d71-99f4-38cb918d0a2f","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":144,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"b97d2fa5-dc09-4b32-a9df-069f2902356f","block_type":"box","text":"appropriate.","page_number":144,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"a68dfc7c-8b5b-4e37-b20c-fc0de2386c32","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":144,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"2f64132f-8193-4fb9-b2d7-61ee4d4402e8","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":144,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"64381675-2456-4aae-b2c2-0b81940705df","block_type":"box","text":"described above.","page_number":144,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"b40e56cd-522e-4575-83c5-bdbd7659f603","block_type":"box","text":"REDEMPTION OF SHARES","page_number":144,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"a0a4f46b-73bc-45f4-be70-d6786f0d26bd","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":144,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"b3bb1ccf-4d11-4774-81c8-4215ef847b48","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":144,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"6512eccf-ff00-4edc-96f9-820551b63fef","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s por tfolio holdings at the","page_number":144,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"32ab7995-4529-48a7-b6c0-3568f392b179","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in por tfolio securities and other assets rather","page_number":144,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"b37bc83d-1375-4ffc-a905-881f7af41e7d","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":144,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"7092860f-2ae2-4466-a3f3-473d6002d3c5","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":144,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"6b8d8195-ea10-4e31-bda3-96af1a635d20","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to conver t the securities and other assets to cash. Each","page_number":144,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"a82c5041-0f4e-48d1-80dc-33a409705588","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":144,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"7239c414-d98a-4184-b6a8-00ff66a17efa","block_type":"box","text":"II-114","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6eb10412-25b2-41df-9210-e4ecb4ce70e5","block_type":"box","text":"NM1026U-5978647-144/232","page_number":144,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"43ec985d-ec45-403f-b466-0f621d90094f","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":145,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"6e5b735e-64ca-495c-9f26-cdd7106537cd","block_type":"box","text":"for any shareholder of the Fund.","page_number":145,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"2c01e671-e8c1-40fd-b082-36d34bc2e608","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":145,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"742195fb-e9ad-409b-b9ed-9ed2edc36862","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":145,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"21af332c-5d36-4c91-a7c9-492e1166d47e","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":145,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"fa95f6a6-c82d-4624-831e-855dff1e65a2","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":145,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"ea142e0b-8948-4290-997b-2faa341769d7","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":145,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"364a4270-3e1a-442c-94d6-428fc77d6e10","block_type":"box","text":"redemption.","page_number":145,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"cb995fc8-1f70-4a17-8424-0fdf7061dba3","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":145,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"029abc31-e43e-4bcd-a9c7-5c7611df9221","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":145,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"3e665452-85ea-44e7-88fc-641721678c68","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":145,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"48479920-fc8e-4522-868c-86dfb39cd523","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":145,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"08dc3801-6642-4db7-915d-4052d2df2131","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":145,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"91c91fd2-8c5b-4463-8c6f-22f7863d5f80","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":145,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"58d78669-cfc4-4ea3-b389-508626ae5c1c","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":145,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"686bb396-b456-484f-89e1-527a4ecce601","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":145,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"7e34579f-453a-4bf9-8bdd-d4bdd9dbaeee","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":145,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"6855fcb3-64ae-48cc-9e3d-6e52d3c6514a","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":145,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"6225075f-7f0a-4bc5-b70c-90a947a66006","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":145,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"14832fdb-91cb-4417-bd11-ea45aaebb81e","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":145,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"3d1a9435-cf9d-41b8-9ca3-47df47899f84","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":145,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"db12a707-16b2-404c-a8f3-57bf26d9de78","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":145,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"f29c50fc-a8f0-46a8-8457-5eaa038e9594","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":145,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"f2870c5f-85b0-4035-9785-7fbba5836202","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":145,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"67835257-dc9f-4822-aa3f-68476bcc9772","block_type":"box","text":"Redemption","page_number":145,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"f8490e88-bc77-4239-947f-a0feb5f2a955","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":145,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"6d945eda-ae70-41ba-ade7-ed14ebd80def","block_type":"box","text":"Redeem by Telephone:","page_number":145,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"09cbf309-8284-4fdf-b608-0875a5db4a05","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":145,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"38ae0d51-f57c-40e5-b114-a18c23b13dce","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":145,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"71c948d4-2692-4ce5-ab55-741c6a9caab4","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":145,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"60434646-beaa-4939-bc74-aefccadf34ce","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":145,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"5aaf6182-89d7-4886-be9c-b48d0b39baae","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":145,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"da7756be-61f9-4232-9491-9255064435ed","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":145,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"c399955a-81bc-46fe-bf03-b42e80694243","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":145,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"9b1f2be4-6b49-4dbb-b324-c75dbec7b6a0","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":145,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"a2eeabd4-09c4-465e-bd83-3a9057035c6a","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":145,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"46d9e545-9081-40e5-91a8-5199527a71e6","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":145,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"34644366-ce2f-4e01-a8a0-f15c47f62fa1","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":145,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"fea8e93a-4366-4faf-94a0-9e822beaeb4d","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":145,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"7cac7a7c-7b69-4f48-9634-a58c9854efe2","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":145,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"4d85ebd6-b8b6-48a2-94e1-edf9e6925e02","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":145,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"6aa7b1e5-c410-4428-966c-99781da25c03","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":145,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"367dab2c-7f36-4321-a496-3a7731e34fe0","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":145,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"a0004135-d326-46b4-b6ff-234ee009d8a1","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":145,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"4aa2003d-e9b0-4859-b548-61bf8d4ff496","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":145,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"50b03b6f-e2a8-4e54-8453-2f5104c809b6","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":145,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"d72c501e-1a39-4120-bae5-e2ecd8d92db1","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":145,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"99b461bc-9b5b-4385-8162-552006c23037","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":145,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"38f00cc7-ca18-4d51-91c9-5f9080fce998","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":145,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"32dac776-8aae-4653-8991-8f2bf246238a","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":145,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"528395b5-e295-47c7-b85a-fcfa185c74d4","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":145,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"8c2d4dc2-938d-455e-b978-976809f294d9","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":145,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"dd97cc9b-c0a1-4f9c-be14-7633352c7218","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":145,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"546e7e4c-7142-422b-935a-a35cfba35910","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":145,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"3330abdf-addb-4fc5-8471-080d6addeb57","block_type":"box","text":"II-115","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d17728d5-bdd3-4fec-8750-f8cd5f9ab613","block_type":"box","text":"NM1026U-5978647-145/232","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2a8436ca-2060-40fd-ba6e-b785699dd4d6","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":146,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"90ca6a7c-2b6e-43ee-ba9b-a6cd4b06c9b1","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":146,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"fed039a1-2607-4071-9f79-6edb1ef8ac79","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":146,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"c903f04e-a618-487d-bfde-cdb63f148f92","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":146,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"e56a43f0-3260-44ab-9ee6-4351735f1f27","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":146,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"0693c603-dd96-4ae3-bbc7-3e24cf828060","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":146,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"f397eb29-57be-4ab1-81ce-2a8038db4447","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":146,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"916e1134-283d-4c20-8ada-a30f134ecdce","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":146,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"2784aed9-7015-4fe8-b1b0-798dd95db48d","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":146,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"d158b901-2c7b-4730-bc9a-b49226f1c540","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":146,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"73e8344e-7ac4-48fd-ac83-dc6f61275b9a","block_type":"box","text":"Redeem by VRU:","page_number":146,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"8698eb78-4f73-4b40-acf3-daef4733845c","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":146,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"638e4b92-2645-4c81-a23c-01835f21c672","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":146,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"21f68804-01ed-40ef-b492-b3af3a591626","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":146,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"0aa39c2f-ff43-4f8f-91fb-96ffb276dcac","block_type":"box","text":"Redeem by Internet:","page_number":146,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"2ac3b9d1-ac80-4b3a-bd82-69eaa26c08f9","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":146,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"d90c24b7-4d01-4da5-a241-cf5e95606d6a","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":146,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"92796392-0007-49b1-8029-19883a268171","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":146,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"33a4bcd4-d3e0-4e66-aa51-84c276334aa1","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":146,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"07e777e5-5c27-497d-a147-32e6e764e8a0","block_type":"box","text":"institutional investors.","page_number":146,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"a84550cf-e6bf-4f5a-bcc5-dbd1fcd5a20a","block_type":"box","text":"Redeem in Writing:","page_number":146,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"49d547a1-8959-45cc-a01a-e5cc50c841b0","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":146,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"03b40545-df51-4fed-ae92-e22a01f47e53","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":146,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"6387bb1b-68e2-45e5-8eec-726e3c45a876","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":146,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"ecbda5f9-8fc2-48be-a649-3096f9a72aa6","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":146,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"2e0057bc-ec6b-4ee1-98f5-4e565104e0c6","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":146,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"f703ff94-4e18-4425-9e8f-e2e6912c03ea","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":146,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"18df22a3-e812-4918-8276-383a201de910","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":146,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"1eba734a-7e65-42a9-b21c-65e738df2d1f","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":146,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"de55a48b-ed6b-4331-b115-db7ee3c2bd13","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":146,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"9f8f4aa1-a97a-46bc-b60e-e7dd1528c1b7","block_type":"box","text":"or wire to the bank account of record.","page_number":146,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"6dbbd6ef-6410-4c28-bb84-dd09d4986106","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":146,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"274755fe-1af3-40f4-af9b-13480f97f3fe","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":146,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"25e7ad22-26c2-4748-b473-3a1ea9afedff","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":146,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"e1c2bdea-39dc-4739-9ac8-1733e716fbcc","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":146,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"20c6a883-2dd8-4d07-83aa-9cb9fe4e3a20","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":146,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"ed3a9907-2aec-457e-8818-6e5fec905522","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":146,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"ec7a7b4a-849f-47b8-9dae-d365244c5d86","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":146,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"5d47bfdd-d3ac-4f41-bbf1-5db15e4dee36","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":146,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"28568c62-dd80-4624-b856-58fa4a008d3f","block_type":"box","text":"redeemed by the Fund.","page_number":146,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"db3d9c0a-f2bf-4f6c-b4bb-33074b46d4b3","block_type":"box","text":"Note on Low Balance Accounts.","page_number":146,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"7044f657-4e91-4bc1-9110-d3436623c196","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":146,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"1211cfc3-9155-4304-b290-193f8e8b263d","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":146,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"7f021116-d6fc-442c-847d-761ad665d492","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":146,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"3be7c3d3-ba37-46ef-a6b8-cea50be7a92e","block_type":"box","text":"for any reason, including market fluctuation.","page_number":146,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"94a9d309-4539-49b6-ba0b-458988a061ce","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":146,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"62f699f0-bf7e-424d-8244-ad52d90529e2","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":146,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"03df70b4-dc3a-4608-a3e2-672ba7b8edeb","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":146,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"52e99ba5-0a92-4d30-94dc-60d9566fb9da","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":146,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"f55d9481-f0fd-4543-bcf6-b30dacfbccb3","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":146,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"5dca2be6-a5d8-49f9-ad52-03776c22a9f1","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":146,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"7a2f0ea6-1c1f-426b-9851-74f6284726e7","block_type":"box","text":"Redemptions in Kind:","page_number":146,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"bba6c8da-4b0b-4cff-a887-a218251b9e2b","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":146,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"de9cfe98-5198-44b4-82b8-2ab84649ca99","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":146,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"edf6e458-e81c-47c9-97f7-bce567c40616","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":146,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"93e3ae9a-0637-419c-a3f8-9267280c3f25","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":146,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"09d922b9-0d1f-4358-996c-833615da074a","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":146,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"5dbcf0f0-89aa-42d6-9c29-f102e26c3295","block_type":"box","text":"II-116","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ff74b9d8-a0b3-442b-8a6e-d84cd9e5fe6c","block_type":"box","text":"NM1026U-5978647-146/232","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1208a63d-2634-452b-8453-87d3ba686cd5","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":147,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"80843911-7379-4843-a23f-c5de5a50078d","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":147,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"c59a8a9d-ab2b-4c9d-8174-217ea8916f13","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":147,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"1912d75a-7955-45ad-b3c3-f8bd10a6df71","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":147,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"0302476d-bea6-4e99-a985-6019e137d4bc","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":147,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"bf647b1a-9260-4c5a-bcae-53cb1cac59f7","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":147,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"62f4b033-7816-446d-adb9-6fd7234e2171","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"8e784d0e-b3e0-45bb-9a54-61d5624b98dc","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":147,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"2c059d02-30bb-4cd3-a239-861c3a96654c","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":147,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"092b970b-b2e5-4dda-bf25-19f36bb4432a","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":147,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"bdfa481c-9add-4d37-9fb3-7d4c1bfc3fd2","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":147,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"0aa0a992-ea6d-4176-92f1-8f05c8020f2b","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":147,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"20b482e0-7b4f-47ba-b445-41f19cd7ceeb","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":147,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"9ec6f15a-4687-408d-a230-c0f5a2dfda49","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":147,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"9f1cfab1-f384-4d97-8ee9-a5bdf839afd6","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":147,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"c3ff278c-1bb9-4eb8-a4b7-91e7509f4e83","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":147,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"57ad34f6-c3f8-4426-8ac8-31493a474899","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":147,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"5699d288-17f7-49c4-9f76-90587517c317","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":147,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"97fe0f13-1167-4f73-a4fe-863c4fcdbdd7","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":147,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"dcff79ac-f379-4569-b600-e5b9d1a05ed5","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":147,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"6fa3f781-49a5-4288-af05-3aa6ab561a0e","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":147,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"12fce156-719e-4e69-846d-c5172a9a490f","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":147,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"2a743f92-3a1a-4316-872d-3e9574bcecfe","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":147,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"11d3abd3-04e8-4c09-ad10-9666ef59ff9c","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":147,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"6589d32e-f8dd-46ed-96fb-badce4b1c71f","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":147,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"dfd9a0de-c9e0-4afa-a8cd-00a7bb272c7d","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":147,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"ad76a6df-4007-4ddb-ba47-d90c05dfef7e","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":147,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"bb1b10b9-04f2-4698-97d7-58d7a462ae07","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":147,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"daec49a5-3d0b-45e1-a9e5-cb5913da00d3","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":147,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"a25dd451-eff3-4f18-8d81-6556524544d2","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":147,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"b7234503-2750-4ecb-a685-c2c993668370","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":147,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"869666fd-c886-4946-b861-0d1bf8cf8d5d","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":147,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"36f26910-8b88-41d6-bff0-195f024a8f55","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":147,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"bda7d18b-d714-4604-bdc8-61b01eab98d4","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":147,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"a24f5574-9374-4b14-8602-9c295f53b9ab","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":147,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"2c053188-aafc-4395-ab08-9baa27ff519d","block_type":"box","text":"Repurchase","page_number":147,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"db251706-2fe1-44bc-ab32-439b87e877bd","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":147,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"4d6df2b1-2004-4e99-9a69-503114af4f8d","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":147,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"3e88c7f9-4b30-41f4-970c-8adedf0d1469","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":147,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"50a614ad-5eae-4a89-8a13-f10c416875a9","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":147,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"1580be32-16e1-42f7-b93b-9a215f36dcb5","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":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"cd5b1201-1413-45fa-a6fb-b1c24e3d06fe","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":147,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"7eedbb11-69dc-403f-9ef0-b3110722e3d7","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":147,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"80a0cb59-ec25-42a5-ba9d-d692f1c1db65","block_type":"box","text":"next business day.","page_number":147,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"7efbf2ba-f221-42e1-89db-372c6ddb1200","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":147,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"a8966e7f-04dd-4dab-b719-9b50bd558af7","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":147,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"d439a26e-7a4c-4a7f-9dca-1157c424b107","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":147,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"c5d5a7bf-1a94-48d4-9600-29806780d48f","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":147,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"f3eeef2d-4899-4ad5-9191-78e153673b8d","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":147,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"f583a7b9-8e48-4980-b469-220e180258c9","block_type":"box","text":"redeem shares as set out above.","page_number":147,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"7424e105-c30d-4a66-886f-0bc9f0e13ae5","block_type":"box","text":"II-117","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bb0bff53-7ec1-4a82-bb56-f2cdd7039ba4","block_type":"box","text":"NM1026U-5978647-147/232","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a8d8e45a-8986-460b-9de1-325d2fe414e1","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":148,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"f45ff95a-26ba-431b-9ad5-6f69a5e25159","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":148,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"1b11a70d-0905-4137-bd18-b6a2595c4e82","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":148,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"e2ec78be-c177-49ae-8541-2f843160a0f5","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":148,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"dd6b1f79-c236-4cbd-b682-4b1d1c3317ca","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":148,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"25808b61-8dac-460b-8edb-eab1ddb920ac","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":148,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"b657dbb8-e7f2-4779-9b85-23769bffdeea","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":148,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"efac9bf8-1375-4fc9-8da5-35a995bc56e1","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":148,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"240db846-c641-487d-b871-b1997bda300e","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":148,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"0698e365-a238-4cc3-bd0a-2a335f7b3899","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":148,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"7615de22-2f44-40f6-bfde-6218658ddee0","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":148,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"a1d209b4-13d6-4036-82f5-57cf3d03eaae","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":148,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"ad17647a-554a-44eb-9881-40b367e41ed4","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":148,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"dce59464-bdac-4620-9a47-437d2d1bce66","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":148,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"cefef736-6053-4bfb-99db-81ba535f4d33","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":148,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"f4be8a02-153e-4339-b693-60f5af9dfdc4","block_type":"box","text":"Investment Account","page_number":148,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"aef03c0a-d100-4b81-b8be-30290f534d0a","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":148,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"cf06c94e-dcaf-43d1-ba12-0d86385be0a0","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":148,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"45fe519f-1cf1-4b33-8347-2ee18f79dc55","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":148,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"94cfd87b-c8f3-4bbf-9dd0-dad96afebd83","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":148,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"793361f2-574a-4a6d-a63f-675fbdd67011","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":148,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"44d9b04a-6734-40ce-bb12-d60011aaf39e","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":148,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"58bfe920-283f-4063-9be4-e298e28a2b85","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":148,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"a26d5625-4a13-46ee-ae2d-dea8aa4dba15","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":148,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"bedafb65-978a-4f8f-a1cd-e4fb4c9d2cd3","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":148,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"bc042413-fb75-4104-ad40-0dd9155b05b0","block_type":"box","text":"automatically at the Transfer Agent.","page_number":148,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"95ba900c-c383-43ea-880a-d5b979d901e1","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":148,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"ed977ebf-ffe2-46ce-9ef3-96c7ed91bdbe","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":148,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"7eb0aff2-a010-4b86-bcba-200ba71da6d6","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":148,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"11a665c8-3b75-483a-8d52-336a4d97848c","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":148,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"0af855a2-5d1d-4ac7-a7b1-46389df7261a","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":148,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"4e6d0e23-1a2f-4208-a78d-634b81fc13d9","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":148,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"724d097b-e539-4e71-8dbb-d4581c304604","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":148,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"5257aa24-bc38-4584-8229-44fed5772795","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":148,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"b967fe4d-597d-493d-a06c-533a0d0be031","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":148,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"23e5e9dd-dd5f-43e1-9803-ffda71ac4feb","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":148,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"ac37b493-0065-49a2-9516-bb3178501f99","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":148,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"3b278036-0d6d-4d44-8e61-8cd79f1835e7","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":148,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"61dc52b4-e8c3-423f-a034-803fe1c382cf","block_type":"box","text":"issued.","page_number":148,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"2b4c9b8c-037f-4a81-b3b2-16fc375cc39c","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":148,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"609d9c91-a3a5-47ee-8e08-f91fc95414c8","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":148,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"43476c64-c00f-4ee1-9483-0fc95096db70","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":148,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"1879cb17-983c-4574-a222-e465468d5154","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":148,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"221f00d1-a8cd-47f4-a5aa-efbb12c95f84","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":148,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"bb866f6b-0192-42e0-9f2b-3756a25c1351","block_type":"box","text":"Exchange Privilege","page_number":148,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"83f3c129-1da7-4607-a55a-66a668e6cd41","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":148,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"cb1f8d2f-8896-4228-9097-2135a049388e","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":148,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"1752481f-b8f5-4ef2-a5ef-c3332afdbdcf","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":148,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"bb918e6c-e690-426f-b299-68f6cd9255cd","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":148,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"6d31c195-8c38-4c16-bd67-fd5d8c5a4d5e","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":148,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"bf71c15d-e6f2-46f4-87e2-4228cc248031","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":148,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"19e092e4-2c09-44e2-b5e3-5bc5f8dce2db","block_type":"box","text":"II-118","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"878974ca-1ece-4bcd-a95e-8a5e06d6694d","block_type":"box","text":"NM1026U-5978647-148/232","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"593709b8-ce8b-42ca-9879-4cf38d94865d","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":149,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"dda90a00-b42a-4f8e-8d93-12e255cf3969","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":149,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"27dbc951-fdd1-4680-be9f-1e7b17c98520","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":149,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"cafa2c01-74a3-4dfa-8358-34416a138a33","block_type":"box","text":"Institutional Shares","page_number":149,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"55a066fd-8bb8-4f8e-9418-8bd220284b80","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":149,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"80770510-09dc-469b-94fd-f738fef9d48c","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":149,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"343b2a18-30be-4198-b8c3-30a6649ff8ea","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":149,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"19d60b53-74f9-4588-8a31-883a4397ce39","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":149,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"d6510394-ce3b-476a-a7f5-4480666eef79","block_type":"box","text":"for Class G Shares of other Funds.","page_number":149,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"62dfa23a-4fec-45be-a186-c77dcdef420a","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":149,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"0daffd3d-e3fa-4371-89b3-c6b7d84beebe","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":149,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"796f8994-8fde-451b-8baf-d655bbc2b023","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":149,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"a44ec8e9-16af-4ae7-ae83-1302ee645aea","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":149,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"3fd282d3-7721-4747-bf11-24905b02d82e","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":149,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"bf99f09c-f0f5-4991-a429-3a39bf373169","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":149,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"73c4d6cd-ee42-41df-8962-be08e5a43ed7","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":149,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"ca46a0aa-25b5-425b-b28f-fb505b999535","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":149,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"18ef1557-fd39-42ff-968b-6eb810898f00","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":149,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"558ff516-a9c5-49f1-a3ce-e12b7c6c3795","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":149,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"0132b1d9-02e6-402c-b149-faa9db10a45f","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":149,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"b86b1d87-8b78-4924-bf6e-331fe187a0db","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":149,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"f18ea25d-1337-419e-9e82-386770ce32fb","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":149,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"7ef27e54-1b57-4c7f-83ce-510ed237af1c","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":149,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"2ab36e11-9574-4143-9465-5e8d3b934afb","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":149,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"9e282679-bbe0-42e2-a703-1b6caa604e75","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":149,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"b83d617f-75fa-4620-a506-2326355949d7","block_type":"box","text":"Exchanges of Service Shares.","page_number":149,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"7a577ab2-db14-433c-a063-f6f74ae342e7","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":149,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"105b0dbc-c26f-4b45-86e7-6205b40e4957","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":149,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"8f2b3c3d-ec03-40df-908c-157f4d0387a9","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":149,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"853093ff-784d-4b2f-a48b-e19e845db4e4","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":149,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"ddfc1c49-cb4e-4836-8c77-ce785fa3406d","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":149,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"71c9b59b-5c52-4314-b206-9614d373eac4","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":149,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"04eca388-af87-483c-a698-001be48fc1f8","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":149,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"8d1fd5f1-ef9f-4432-9431-aa81ec5145a3","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":149,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"c6dbcdd2-4581-46fe-9e0d-3df272a7ebde","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":149,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"1f9b2d35-942f-446b-9e2a-8a99a4ad5702","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":149,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"9e244637-fa31-470e-ac5f-d71fdc4f0070","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":149,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"127543a4-e995-44e7-870d-ce19fc54073e","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":149,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"d7965c23-8e22-4d7d-8d9f-7a1b5722bd67","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":149,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"0da6f4c6-d744-4465-8a12-bf051f9852f0","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":149,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"4493eaf6-0eee-45eb-bccd-e1185af2a530","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":149,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"588ad74a-42bd-41b8-9819-7c455d8958e4","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":149,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"3ea551a4-3d62-4be4-ba7d-e472dea00939","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":149,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"4a0c88b1-b9a0-405c-87fb-5beff6ca457f","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":149,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"9c4f72f3-64cc-4471-86fe-8d91dd48a6f2","block_type":"box","text":"exchange.","page_number":149,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"a8aa4560-2ab1-4678-8d0e-60bf07b764cf","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":149,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"b4d391c0-cf95-468c-8344-44eecccd2d28","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":149,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"d0dd14f8-41c4-4780-a73a-85c8cd25919a","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":149,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"9848a538-04bf-4de1-9f0e-9de7fb5b65e8","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":149,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"c6d0db9e-6605-4b9b-9a8d-c4705f17e526","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":149,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"827177c9-dad2-4700-aa93-d7fb24a25d3b","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":149,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"4c055861-f46f-4997-9390-c5fd2b47ea63","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":149,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"ac76d1d2-fc19-4e3c-9887-9150fd876faa","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":149,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"2e4fc286-f4bc-4a01-b7fc-e05208148811","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":149,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"4d5c6114-615e-4f7b-9894-c39215c8ef7f","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":149,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"0b79aab2-f43c-41d8-b7ce-21f9447b1928","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":149,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"59be9f59-549b-4380-884e-660f5eac046d","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":149,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"ec0d4903-ef97-4d02-bdd5-c18e96601dd4","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":149,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"4e0d8860-d53f-442c-a74d-a800563fb19c","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":149,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"7d7addc8-7806-4dca-a0a9-06c52ea58610","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":149,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"8e04a22d-c67c-43d4-a3f6-0bfbf21db9ec","block_type":"box","text":"II-119","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5950d4d4-7dc9-491e-816c-f7ef4244320b","block_type":"box","text":"NM1026U-5978647-149/232","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"30b57384-2188-4947-b582-63300a1764d7","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":150,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"c61930d1-3757-489b-a48d-e87a556856ce","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":150,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"8853c7a5-34c4-4b85-aa45-23b11e5636d8","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":150,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"e223afa7-449d-452a-bd65-bb9522c62618","block_type":"box","text":"Transfer Agent in writing.","page_number":150,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"8e3b3fc7-4202-4416-bb17-4420b7bccfb2","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":150,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"a613729d-330f-4e07-b24b-a33a3ebe34a8","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":150,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"6fb13b55-8f48-4c4b-ab2d-0f8e92e7521b","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":150,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"4e73065f-4361-46c4-8b8a-bdb7ca7e9ef6","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":150,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"60cb61b6-4804-4a5b-b33f-1afc1a9ad6a3","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":150,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"3847e05f-6714-4455-84d8-37ee7e363208","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":150,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"8ba41f90-0761-474a-8a15-d16936e0e814","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":150,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"239d9012-759b-45cc-b777-c2b99463fc43","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":150,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"80a54136-1a07-413f-bf7c-26f5cfd8b351","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":150,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"131164a1-6b1c-4c15-b703-e51ab06327fa","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":150,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"40a3bdec-29af-4232-844b-e25ead7ced2a","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":150,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"d1b7f3dc-109e-473f-8daf-8df627ff2c04","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":150,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"0dd5df9e-dfcb-4f67-b719-bfa1395a5f44","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":150,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"88d99e70-d2ba-4503-bea7-47014b75c820","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":150,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"ea4e58c1-c1e0-4168-acc3-d2fe8dc320c6","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":150,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"bb4e2db4-71ed-476d-8f43-556385b3a967","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":150,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"5d013e90-6fe2-40da-835b-9a39b0d25f57","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":150,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"44fccf2e-6be7-4934-8cdb-de2dec12d33e","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":150,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"9b0484c2-e309-475a-af42-f4ae95a5cad4","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":150,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"6c6e1c53-4a5a-49ce-9463-98499466bd53","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":150,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"c85bbf47-5e8a-4a8a-beac-ab3ac43d24ef","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":150,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"94a133c1-7f00-475a-98e9-775f8563269a","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":150,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"2e6926dd-6db8-4746-b4b4-8da3e01d94fd","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":150,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"82f8102c-14fa-4476-a3da-2dee52c2bf97","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":150,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"dc6d0326-403d-4dc3-8664-c581f2097706","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":150,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"685cf3b0-549d-4038-b31f-15ce9475eed1","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":150,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"dfea0710-f726-41f2-8c79-5936c4341275","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":150,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"6a9892f3-41b1-453c-bdf4-15b712fec8f7","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":150,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"1b7df538-b95e-4433-a0cf-a3c2a9058b3b","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":150,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"63bff4f9-4c83-4dc1-9590-4c2d7551ad0c","block_type":"box","text":"may be distributed by the Distributor.","page_number":150,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"b4f50ce7-94b6-4934-99a6-df7b6e72ca8b","block_type":"box","text":"Participation in Fee-Based Programs","page_number":150,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"e9427ed8-b122-4786-88b4-ce3767180805","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":150,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"ede34dee-6ad8-4186-95e4-9bf9afd42038","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":150,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"8bbe48d8-c481-4b57-8764-0156d2655f09","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":150,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"40424210-a0f2-44aa-a50e-be11a2295a91","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":150,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"d0db258d-48c9-4aa6-bf9e-cba7a6291b68","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":150,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"40226c58-1b13-48ce-b60e-4c1bb61c6ada","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":150,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"bc473240-1d5b-4851-934f-3b2122f90c56","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":150,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"0faf2486-a717-4fce-a13c-7811e59c91fe","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":150,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"467b8fc3-5ddd-4f95-9f89-83d4f5070763","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":150,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"9f08ec33-70a6-404c-b4f2-9d1535d699cc","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":150,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"f719d590-b845-4a92-be6c-5693841c8f4c","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":150,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"6f694696-41e3-42ca-9387-2d0c622dbced","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":150,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"4fb0ef5b-4911-4147-bba7-a0d53b83e52b","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":150,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"6148e04f-c97f-4fdc-93d9-f8be3be6371c","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":150,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"4b257698-870a-461d-b855-ef5296f5de6b","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":150,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"44533984-3bd0-4602-9698-b761f5bdd334","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":150,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"440f64f3-a48b-4e57-946e-b37973ad207b","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":150,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"ef6efcd6-e758-417b-a142-1fa66cf79d2d","block_type":"box","text":"II-120","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d6584e23-8d71-471b-8d71-a3dd54a0f58e","block_type":"box","text":"NM1026U-5978647-150/232","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"14549a3d-9f86-48eb-a207-4575f875f0a2","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":151,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"a27ae91a-2fda-4325-b55d-1c2a6941ab53","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":151,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"adc63c7b-4ff5-40dc-82eb-a29b63a4cf72","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":151,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"0675e1f8-3f27-496c-8138-492750f3d13e","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":151,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"7caee5e6-5acb-4fe0-b502-9524324aef05","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":151,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"29a3cc95-6122-4c0c-b9cc-5a17b51976ca","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":151,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"d3d5f8a1-2fb1-4680-b82d-c4e84975c79f","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":151,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"07711e3d-8cc2-4965-8f8e-3e7fdca75b45","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":151,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"39245c4f-306d-40d2-b620-a1a00c377893","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":151,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"3fef683a-b16a-45fb-9cb3-420aaf9cf928","block_type":"box","text":"information.","page_number":151,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"bb412afe-bce2-476b-a4d9-843df9d5eb3c","block_type":"box","text":"Retirement and Education Savings Plans","page_number":151,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"8e4e4bca-e3d5-47c8-bbd3-4bdd2f3f2453","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":151,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"3bce9e5c-0a56-43df-bf96-3ac46e472bdf","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":151,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"ee36878c-8ccc-458f-a72c-ee2b70670800","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":151,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"78f224cc-4612-4b49-ae07-ef64e765d6cc","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":151,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"19c47c23-3375-4e7b-9b95-e5090f5c8717","block_type":"box","text":"your financial intermediary.","page_number":151,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"a695d6ed-18f1-41fa-9edb-30f5e943d876","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":151,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"2d647be2-3e02-4af0-b6c2-cdd8588ec206","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":151,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"6955e68b-d844-47fa-919c-f94d8bbd95cc","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":151,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"d2200223-1c69-4c36-b67a-0f71841018fc","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":151,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"21292038-ece0-421c-bcab-a2c365839d66","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":151,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"952df926-bff4-47c0-ae18-b4ef25a56134","block_type":"box","text":"Automatic Investment Plans","page_number":151,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"9c7f83be-e113-49a3-90c9-d2d6049ec3e0","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":151,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"db8a672f-0ffa-4f77-b14f-2c9c8bf4ad06","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":151,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"f6c35a11-5457-44ed-a0c2-c5df7a72ce13","block_type":"box","text":"®","page_number":151,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"02b3c44d-44ed-4440-858b-b0563ee91a18","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":151,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"f7a71cb4-6be2-4a44-b756-20ade2e5a6d2","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":151,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"2f70cf37-f178-4441-8f13-03867f33ad30","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":151,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"1fe40443-4c17-4007-8269-fcb4456e9b32","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":151,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"415bfefc-9e5a-474c-aed5-1a83b8a96d9d","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":151,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"b929eed4-f34a-4c76-9008-ba06eec1df0a","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":151,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"13673ce4-02b3-4fb7-8257-75fac1fd93d6","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":151,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"6c8d5e69-8d11-44ad-8944-6ec52652ef62","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":151,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"e69b3fd5-e653-4e0d-973c-cf642b67abae","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":151,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"5377f1cf-28e9-4194-a5f0-de6b45c04ff0","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":151,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"0cb3fde1-c052-4088-be9b-b6b04046b4fb","block_type":"box","text":"Systematic Withdrawal Plans","page_number":151,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"7c4a6a10-36e6-471c-81ae-acd6a303ff8b","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":151,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"760d4a45-27cf-47d6-b6b8-f1ff32ff4488","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":151,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"d5f1a5f5-bf10-4d49-b50f-8548b98e16ad","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":151,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"f337e36e-01ef-4828-8ffe-a1c02a043c1d","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":151,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"a1d2b89a-7f72-4a80-ab73-ac592604bf95","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":151,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"2febefdf-0e8f-4047-a539-b21fd3e5c61c","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":151,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"33e47a71-4066-4353-a4c9-fcda3cd7d0c2","block_type":"box","text":"www.blackrock.com.","page_number":151,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"4367b9fb-93c0-4f6a-89aa-281fa5073bb3","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":151,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"c107a030-6ea7-455b-890d-9713c49ee39f","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":151,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"ec0b558a-7b5d-41b5-8069-efd0e01e37cd","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":151,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"50d5f6b7-5176-4341-9b9f-548e8e74454e","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":151,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"07d13df4-0a57-445b-8125-6de599762bef","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":151,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"e9d1e630-43d4-46b6-bce8-f4d782e3b73e","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":151,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"2ba631b7-710e-4a6f-8935-4b22674271e2","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":151,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"520fb965-44dd-4ff8-82f9-12c5ecf7f202","block_type":"box","text":"II-121","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"af7511e6-34c6-4baa-854c-c346d80d7452","block_type":"box","text":"NM1026U-5978647-151/232","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1a8f5666-0668-4607-a4ca-d9ae46b05815","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":152,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"00b022ef-527a-45cd-96f4-16e4c65e319f","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":152,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"11fae7bd-1dca-4fa6-8112-c84687ca793f","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":152,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"641cd528-fb32-4c93-88e6-97051d4da64c","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":152,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"25f0df41-477c-49f2-8350-d7fcb6b8a515","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":152,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"1a07278d-7735-4cfa-b38c-177806bb2c8c","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":152,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"53859127-5df4-4969-88e6-989eeb96f047","block_type":"box","text":"Dividend Allocation Plan","page_number":152,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"d1e5922c-30a7-44b6-b41d-3e1f64671db0","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":152,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"433a075b-6bab-4af7-8025-0634adf6f8fd","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":152,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"c2ec6cd1-90f1-4ae9-bf38-c972535f90ee","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":152,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"2ba91318-4b54-4a53-a5db-f79b3f827875","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":152,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"b85e275a-0f54-46d4-886b-213677012922","block_type":"box","text":"PRICING OF SHARES","page_number":152,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"fe3b4e2c-56c4-4c6b-986f-30fa7dd67833","block_type":"box","text":"Determination of Net Asset Value","page_number":152,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"21e1c6b6-0fe3-4ec7-be88-ff9466581283","block_type":"box","text":"Valuation of Shares.","page_number":152,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"29c157b7-6f30-48dc-b1c5-291c759dc921","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":152,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"a2307d3e-6047-4c0c-b52a-b04cf0e439e7","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":152,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"27aa8a30-5994-4077-a9c0-3ee7b15826a0","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":152,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"59ca9253-ad29-4691-8aa3-773009639d13","block_type":"box","text":"Equity Investments.","page_number":152,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"bf2890ac-2e8b-42ab-b6b8-3e7561249509","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":152,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"1dabe65a-cfc3-4071-8a16-4c3b4dae7858","block_type":"box","text":"e.g.","page_number":152,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"2c4b51ac-c945-4d44-9cfe-299ff4085253","block_type":"box","text":", NYSE), on separate","page_number":152,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"210cfc67-4c31-4117-b445-d3ba93bd7072","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":152,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"879fd5d7-d88d-4fec-9714-217900c7dfac","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":152,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"2d576a87-c29c-4b17-bcc3-b8a9e8432b04","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":152,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"998e6073-b89b-41b5-8b77-2f4dc9814ae7","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":152,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"6672b781-1910-4c90-a402-263bb2da6dcd","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":152,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"e0804a25-4fa6-4f12-b2a8-6ebc1b551513","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":152,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"de42eee6-0b77-4428-9310-001afde67cd8","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":152,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"5b956a7d-3b93-45da-9867-e84b17ffc939","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":152,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"4f82a8bf-08b9-4fc2-9254-7a12c7f3cb5f","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":152,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"6e2b9042-98ec-4776-b6e9-ea5cc46cccd7","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":152,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"f4d8d869-5658-4dde-ba8c-36c0699012a6","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":152,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"c0a54e8d-2b13-45d7-ba67-8482896684bd","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":152,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"786d829a-51a3-464e-8ac0-ff5acb4d9e08","block_type":"box","text":"defined below).","page_number":152,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"5de5ac22-69cb-4cf6-bb08-07d5d53db290","block_type":"box","text":"Fixed-Income Investments.","page_number":152,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"ef56a601-cc94-410f-9494-d780c00fa9ca","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":152,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"975e1856-4e78-4ab7-9601-4e04e3eae1df","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":152,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"19ec0c75-1a28-4819-a313-6af7a2c0d2b4","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":152,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"000164cc-cd2c-485a-a26c-0356d712cbc2","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":152,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"71e267c4-8489-4b35-939c-58cee0821808","block_type":"box","text":"e.g.","page_number":152,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"214d5e03-6c79-4160-a90b-03f9755f0d6f","block_type":"box","text":", recent representative bids and offers), credit","page_number":152,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"cb96f462-1639-4bc8-97f9-8a08092bb3a6","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":152,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"f6891ef1-3a6e-4227-973d-260ba5982e75","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":152,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"4760d1c5-add0-4a89-8321-0107a706bf1c","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":152,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"30c92d9f-26bc-45be-b91d-f919e3b00fe5","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":152,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"6a3a2836-51e7-4d47-99f1-2d5558491cd4","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":152,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"bff51210-3c13-4bd2-971f-e2a5ba3c26e2","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":152,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"3a729f98-10d0-46dd-8c03-21ee72964570","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":152,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"fccb0dd6-8a7f-4dc5-985c-fb6557804f7a","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":152,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"f3f2f4ba-cc0d-4f84-8a4e-c7ace717648f","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":152,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"468d60ce-9a02-48dc-bae9-ca0f2fc9420b","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":152,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"b769c5e0-c6a7-4058-b46a-a51425baedd6","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":152,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"c1a5aea2-ac09-4ea0-a9ff-a5ed88c05bf7","block_type":"box","text":"attributes of the tranche.","page_number":152,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"a427e86e-d637-40a9-96db-b753229e17c6","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":152,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"610b7b58-29ae-41f5-bcd3-22eb1b78e156","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":152,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"4e0fb4e6-9125-40b0-9bcd-780d48c7998f","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":152,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"8413f1b1-2a5c-4439-9b42-79add4dbe16b","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":152,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"b68337e1-53f2-4d49-9734-acebb6b1f2ee","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":152,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"861e8e1d-b793-4eb8-8086-c87baa832d1f","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":152,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"368f9f51-2383-4c32-af28-ab4bdaef3b38","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":152,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"499f4e0a-ef39-45bf-ab79-2521f69decf0","block_type":"box","text":"II-122","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ea45e9e0-7c74-4850-976d-d6486411cab5","block_type":"box","text":"NM1026U-5978647-152/232","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ef9e35f9-c00d-4341-bf63-e1197c6bac5c","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":153,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"2d5c4171-067e-4e84-9cc3-83df556e276e","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":153,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"42c7694f-34f4-41a0-8d80-cdd1bbb3dcd5","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":153,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"1afc3c33-74e7-4e28-ac37-50b66affb521","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":153,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"49d26d42-db6e-49b4-8953-798cc0a5ca66","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":153,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"dd6b77dc-309e-431b-9834-31421f6a5136","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":153,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"675efbc5-7fbf-4c96-9fd8-0dc79dc7f043","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":153,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"0ccf8827-b6d7-445f-a6d7-5fb2a1a7fd35","block_type":"box","text":"Underlying Funds.","page_number":153,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"464e2d3f-21d6-4690-9418-1004e442052c","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":153,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"72c9dd1a-eb33-4d4c-8383-611ec4e8726a","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":153,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"661ea858-4664-47e5-86f8-ba0c59674110","block_type":"box","text":"at their most recent closing price.","page_number":153,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"88493c94-9f12-4445-acf9-7977dec1b013","block_type":"box","text":"General Valuation Information.","page_number":153,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"a88eb555-4ae4-413d-99c7-5ab98cfd211d","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":153,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"00394a85-6520-453b-89c9-1c00495f2652","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":153,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"cf711c94-8a43-4134-a491-6b676aabe7b3","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":153,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"583e60fa-bedf-4958-ae4d-ea1ca16b5fdf","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":153,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"ee66f732-e883-4083-bc56-dfaf43e3407d","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":153,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"6b326ff4-f59e-46e4-aafd-4937f153ce55","block_type":"box","text":"the revision.","page_number":153,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"fc1380cb-58d3-4bf6-83c3-7198826e7189","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":153,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"1fb3aa85-648b-469e-aa70-b3b4f8a5fdc3","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":153,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"a5c6532f-d786-4748-8c51-1c0cc45196c0","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":153,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"8f6d39dd-e013-43ec-b465-deff9421eb43","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":153,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"81655372-fc70-4af9-83ad-f1f09ed9a9a4","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":153,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"8f2f0ba4-d987-471c-b41d-7f970cb49f51","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":153,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"2cb7c02c-782c-45e9-8ac8-34bb024fc08d","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":153,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"2311c516-0159-44c3-bc82-553a8cccec65","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":153,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"4c88b01f-185a-4896-aaba-0e736bb3c1db","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":153,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"39b95c84-d7cd-4f82-acad-614a437f0224","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":153,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"7ee29f74-9a97-4846-b394-cb842ab4041f","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":153,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"99ea62b6-9e08-4361-a2e5-615502e9f326","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":153,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"3b27d6ce-a8a7-463e-a896-7261041eaa6e","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":153,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"e63acb6f-3109-4c09-b75f-bfbccc803757","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":153,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"7911c17e-c719-4c3d-bb80-30b4dd636368","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":153,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"15c22ffc-ad86-4fc4-9e5b-277058ff5941","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":153,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"58994ef4-81b2-45c9-ae78-8a17afcc020e","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":153,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"9ca697f8-df5c-4cfd-8f50-517d2a02e6ba","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":153,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"d575155a-ee1a-4db4-a59f-5ee8c9b81143","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":153,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"c4ba0512-8e69-4838-b979-32e048d598b7","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":153,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"f718023e-83d6-448c-b1c1-bedcb9c441be","block_type":"box","text":"Fair Value.","page_number":153,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"69cc52e7-34fa-4c1b-b384-ded298279bb4","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":153,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"acdee9a3-f92f-4d5a-8103-93730dfca752","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":153,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"d6c2bf4c-065a-46d8-83ff-7fe69d74ca09","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":153,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"5c27f36b-d926-4ce8-b39a-554e289ccde0","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":153,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"c552e108-78dd-4087-a0ad-fe255efb24cd","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":153,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"205c071a-80dc-4d51-981b-eae5a167194e","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":153,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"0f0f4001-c446-422a-a787-566e3a11feb2","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":153,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"29f4e549-ee22-417e-99f2-8b3f1df68500","block_type":"box","text":"(","page_number":153,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"6033669f-6212-41c7-a97a-d8d2b132a74c","block_type":"box","text":"e.g.","page_number":153,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"c8283a8c-8c91-4c27-afe5-3e689e545421","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":153,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"2175fe6f-1948-4a40-a5c9-ef7f62f4d602","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":153,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"1d5d17ff-7b34-4359-9740-5515f9a2ecb6","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":153,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"6dcfea53-09c2-45ad-b084-185217572951","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":153,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"a4d84a09-79ab-48ee-8aa1-90c2a15717b7","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":153,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"190ad37e-1d7c-4487-8819-48a528291272","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":153,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"112b08b5-e08e-4e6f-99a9-c1fd9eaa16ff","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":153,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"50161b91-7517-49f8-93e1-0a3fe51d357c","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":153,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"85876386-367e-4352-aa49-8dc53e57c7eb","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":153,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"e43de8a7-69e5-48b8-ae11-43fe18744081","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":153,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"5542d30c-9b98-46b3-95f9-022af7adc3cd","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":153,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"0e90e092-5803-44a5-a51d-da35de480ecf","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":153,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"0971bf38-9b82-4a78-be24-1e3b8331a1b1","block_type":"box","text":"II-123","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c97dd74c-8d45-4c43-bbbd-c26d6112fdb1","block_type":"box","text":"NM1026U-5978647-153/232","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8926cf4f-bbe2-4026-8419-94f836179fe2","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":154,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"bb6127f7-f0b1-4450-b2c7-6067e7440383","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":154,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"3d9b1b96-12c8-48ef-a106-46490197fbe7","block_type":"box","text":"pricing time.","page_number":154,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"01a61b7d-f8db-4451-bae8-e4aa4e29494e","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":154,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"52c0b864-a055-4a91-ae84-20a271ddfa1f","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":154,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"3d71b30e-e45c-40ed-9747-8f83cb6f5628","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":154,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"b8c70af3-8674-4e6a-b737-6a4652fadf02","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":154,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"2486582d-cece-4602-8bf2-268eb7f27245","block_type":"box","text":"assets and liabilities of the Funds.","page_number":154,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"401bb9a2-c448-4904-b610-61d2192c80ac","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":154,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"2928070d-0c1a-4c9f-b65e-c06ec0f86ca5","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":154,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"7b12e8bf-03c9-46f3-a178-a07c3f4438f4","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":154,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"17ab43fe-4cc8-4070-a439-e4f394aceacf","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":154,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"a197fb90-9959-480d-a8a0-f6e13d92b497","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":154,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"22adbcc7-e091-400e-b95b-ddf8f83f76cf","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":154,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"f620d5b6-fa1e-4076-a7fe-1abc24b03758","block_type":"box","text":"valuation models.","page_number":154,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"eade14a8-aac7-4617-96c9-f31492d95b9a","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":154,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"cf41bea3-dc09-424b-b191-53a5c8bb78fd","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":154,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"590f8ad4-a97b-4893-bb5a-89d8cd437870","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":154,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"7a43fea8-b7f3-4ffc-b753-fc3132ac8628","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":154,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"98298d50-e423-4b3a-97ae-5b3a7494afc8","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":154,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"ee9c17b7-b5e4-496a-be1f-145396bf2489","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":154,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"860ebac0-4991-4d2d-a0b0-e9470762c8ac","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":154,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"2bfd7053-3366-4140-a1fe-810a256df489","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":154,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"9b040149-f226-4f0c-aeca-42cdbaa8dc39","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":154,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"4652977d-5f9f-4e06-8059-c45ee1c30d47","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":154,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"c498efaf-be60-450d-a0ae-bbddb2f44000","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":154,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"0fb3d214-d4a0-4470-9588-9c9c56f021d6","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":154,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"dba9d28f-3e65-4d56-b30a-9371b05979f5","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":154,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"d96b61d1-c5e0-4f0e-afcf-de57b8130763","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":154,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"b4bb44fb-e0b4-4cc8-8af0-0e5096276e2e","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":154,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"d2e49819-8799-442d-b046-3d638b00426b","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":154,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"071e3cd7-1179-4a06-b566-0a7a979d3ed4","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":154,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"200d2199-de71-4240-9c1e-d5eb81724e53","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":154,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"747b4728-bf60-4116-a850-c24a75dbfd54","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":154,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"017dcaee-0c84-40af-ae2a-35e7ccd74cbb","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":154,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"49048f6a-a265-42e5-a7c5-d78d70316f5e","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":154,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"5b1fb8ea-2f80-402d-b887-b8bf1059f979","block_type":"box","text":"par ty determination of fair market value.","page_number":154,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"b7723e45-250f-484f-bf8a-b740edc7dfa9","block_type":"box","text":"Computation of Offering Price Per Share","page_number":154,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"6059a1b0-6258-4cbe-8263-b3fa59dd9fcc","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":154,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"a6d39293-b526-4e60-a3ba-0e324a98461b","block_type":"box","text":"the offering price for shares of your Fund.","page_number":154,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"b67e3c77-265c-44c7-9f0c-82501c69b01f","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":154,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"40689379-4dd0-4c06-b0d3-05ae88465b48","block_type":"box","text":"Transactions in Portfolio Securities","page_number":154,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"1561a4b2-7521-41df-ba1b-cad717e85150","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":154,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"3f0f1e55-d413-469b-a724-6afbfd569c34","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":154,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"136b95b3-f5fe-4938-90d0-711f270c581c","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":154,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"3d4fa804-3576-4885-8e69-ce283b5b4440","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":154,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"1e9c7b7e-6210-4276-bc4f-b558a9452512","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":154,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"3f104c69-a048-447e-9df9-337ef0dc74b1","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":154,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"9abcd9c3-c157-4a5e-b239-36f1f20a666d","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":154,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"dd12ff94-846a-46e4-bd56-3d38d5c70dfa","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":154,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"9692a992-01f0-4a34-89f1-c8f5c621144c","block_type":"box","text":"II-124","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d1545370-4da5-496c-91a8-5bef060cdc83","block_type":"box","text":"NM1026U-5978647-154/232","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"01a99139-e679-4f19-a750-3d2115b8cb0e","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":155,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"9a307c2b-5206-4ff4-a93c-0f92ebed9b07","block_type":"box","text":"reasonable in relation to the services provided.","page_number":155,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"f342beb7-52ee-4c28-8bbe-95107e6e62ad","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":155,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"a8356b51-8ddd-4c6e-a56f-263302d180c3","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":155,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"bc058415-6685-4e2c-86b1-5c1cd2fd0fdd","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":155,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"295b36f5-2cbe-4e66-89cb-2f357f8bb265","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":155,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"10453382-9f98-4ed3-8950-49feda6b9751","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":155,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"882415e3-ff44-41ef-9e0f-cd6dc9a36f14","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":155,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"0e97f183-5d59-4951-9e35-8e2c773815ad","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":155,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"a183066c-4e56-4e5f-9d77-8a84c216f719","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":155,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"35571d0b-91f7-4e8e-a293-621677529845","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":155,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"e299acb9-a27e-4e01-ad9c-f26dbf4b81ae","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":155,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"22879ca7-0068-4027-9626-78751c1706c2","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":155,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"058b22f5-afd5-4932-b7c8-62c64b33e7a2","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":155,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"55584c21-e87e-48c3-af6e-c790e9b99eb6","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":155,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"bb6010ae-2599-411e-bb70-5f2212837b61","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":155,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"08710fc1-ffb5-4feb-8984-cc1fee120d98","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":155,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"6f24f2fa-6485-431d-b11e-9751922c2151","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":155,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"65a0dea3-696d-4714-bd13-4b2cfa81ba40","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":155,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"cd2a1723-00a3-42df-abba-b8a58664bbf2","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":155,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"1ad0afcb-244e-4b58-8650-f7e5837f6471","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":155,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"b02822ae-04c9-4d4f-a88c-0ace2da4542e","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":155,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"83b64d5f-197e-403b-a02b-8059be042bb3","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":155,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"f843c42e-0241-48f1-8ae5-c0bf81a9088d","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":155,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"eb20f06d-94c4-4804-8cb4-63889d5e0e76","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":155,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"438657fb-dafc-4713-8363-f4b90362560a","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":155,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"6b54a166-62b9-49f0-ade0-ef52c05efbf1","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":155,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"11a40adc-70d2-4f7e-b7ed-3ce69e879ecb","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":155,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"b4ca3861-4ed7-432c-aea8-495ba41413b7","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":155,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"78f88811-a750-4132-bfee-4df5c3a75fbb","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":155,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"c3c32ae5-1439-4504-bdec-9ef48f079913","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":155,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"1903127d-406b-443c-9e9c-6a4bdba94a15","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":155,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"a29e3595-dfb7-4e7d-bfda-006e746e5428","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":155,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"5f798c54-b235-4de6-83eb-a0c4aa4600b7","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":155,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"e90e1eaf-1000-4743-90fa-d9bc5f994a25","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":155,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"8325a7fe-dd7d-4a85-9fbc-81bbe8922921","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":155,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"479ea3c3-d944-491e-b883-cab077da36e4","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":155,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"76c55be1-b19c-4177-856f-8dedb124bc0c","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":155,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"421d5b9f-6fcf-4dd5-9eb1-0b83657b2d9d","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":155,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"1a34bb4b-0df6-4575-801f-c05c15489272","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":155,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"113b8fc6-9544-4439-a469-fc2aa9dba900","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":155,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"41dce617-5425-4d30-96d6-8b405d99b4ac","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":155,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"f3ff5aaf-a712-49f7-b706-994f0f1fdca2","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":155,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"f3ece277-d791-4b6c-b0bc-ca9edde4e03c","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":155,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"d6b3002f-63e5-44c6-be3f-041ea4b3771b","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":155,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"7c8ca532-96b9-407c-aca1-8f0403754d5d","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":155,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"8885366c-c83c-4ddf-bfb0-cc813bc1deb6","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":155,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"4ea50255-f79f-4bab-93e6-c12bddf25053","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":155,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"758817c7-5076-467f-95e6-2d4bd3b68eac","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":155,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"a74052e6-1dcb-448a-bb35-12996ac3d000","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":155,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"6d9f6c84-dcb9-4cf9-bb64-b27032f6acc2","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":155,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"e3194cad-6b49-4744-b810-e9cc0b999222","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":155,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"4cb267f6-65e4-48f6-a3d5-245f53bd91e5","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":155,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"51d69945-e255-4f42-8a92-d281d8285c77","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":155,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"02cc2b7c-7110-417d-b8bb-b2d322b0e226","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":155,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"34f127d7-dc66-44ce-9b09-564ffe44856e","block_type":"box","text":"II-125","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"601134bd-6d70-4549-9f28-79d3ddd2eea3","block_type":"box","text":"NM1026U-5978647-155/232","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ca079796-00b0-4445-9695-767c56cd1d2c","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":156,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"fbe2f8b7-bbf6-42b8-96e7-312da8a906f4","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":156,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"e24555bb-719a-4844-a870-6a8c7850cb20","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":156,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"a8d31a7f-24d5-4c26-9d21-eee7a71126fa","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":156,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"66142580-69ab-4e20-8c07-ce6311872321","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":156,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"49ab6296-1b08-4deb-8714-fa9bed51bf42","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":156,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"17435031-f14d-4c67-910e-03dd59bb694d","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":156,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"a430bad5-954a-42ab-9b3a-0b568ed4e32c","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":156,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"4a5d65ee-aa8b-4766-914c-3a9677912941","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":156,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"c36ae908-737c-4b64-a0fd-f8321b6dddf8","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":156,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"68e91ab5-5a57-4dd9-bf3c-705ac07aecf1","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":156,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"d9c8cd15-b3df-46b2-9f5c-a7ba813f3596","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":156,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"90bc6ab9-2a79-4615-bbed-de7751c36053","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":156,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"137ec0e3-bf05-48c1-bb9d-3e7ee251f345","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":156,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"b309d8c8-ceac-4819-a49e-ad79fee2a02a","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":156,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"75d8b892-88ee-4304-b72f-6ef6f68be2c5","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":156,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"2fe69adb-ec9f-41af-9e70-41ebb6d08f35","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":156,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"f498fcb9-148e-4210-9d82-2ee9a70be048","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":156,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"190ba95f-83cb-4be7-b7f8-09cb926c2612","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":156,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"87821bd4-2ce1-4c99-a4d8-b97c86e32c85","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":156,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"eddc06a8-cb99-40e2-ac08-9729bb6c2957","block_type":"box","text":"brokerage.","page_number":156,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"f577fa19-9a8b-493f-8f98-3c76cf69d948","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":156,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"d1d4cfa1-5cf5-4a7a-a159-49e74e7e5542","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":156,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"0849c56d-7065-411a-8dfd-70288466eb80","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":156,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"d4f8d722-b1ea-4443-b836-b31c216094db","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":156,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"7c4db589-87b1-4514-aa5d-c61810e6fbd8","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":156,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"f74dae5f-3f88-43bc-8a62-1ad54dca2674","block_type":"box","text":"Section 28(e).","page_number":156,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"8bad87ce-3386-4ffa-b4e9-303cc422be98","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":156,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"ead2773b-c493-48ee-b8f8-ad06c4be9c57","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":156,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"6546ce32-c0b6-4617-b4bb-8f2d54c99e67","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":156,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"0226cd6e-8494-4d82-9614-438ba8802e60","block_type":"box","text":"execute transactions for those mutual funds.","page_number":156,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"26047f63-5b3d-4d22-81c1-7a79ef827ff8","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":156,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"1f17cab5-2d97-4927-9302-35f55cb55a21","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":156,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"7539aa90-00ee-4dce-9993-28fd6b9785d8","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":156,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"6d4f9f89-debc-4b28-91f9-3138ccd16df1","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":156,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"69af658c-7a9d-41d7-a785-49975f8d1606","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":156,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"1d661c7f-4eb7-4f8f-862f-b72f9f62f719","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":156,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"342414d1-7fab-4a2c-9a8c-d920aa8ecc88","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":156,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"e890f21c-8d9b-43ce-a960-719b25c4d351","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":156,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"08cebc54-49a4-4a98-b1ed-eb443dd4865d","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":156,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"98ee7b13-bf18-468a-be37-1f96d6d97c99","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":156,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"3f3bb1b6-2a6a-439e-9274-594da226aefc","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":156,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"661855ab-82c2-46f4-b0b3-d7143432781e","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":156,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"122c834f-455f-4bbd-b5dd-1d5e34ab4604","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":156,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"ede1b731-d348-4e20-884a-56d51fd6a3e6","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":156,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"44987f29-ef2a-435f-ae0c-0f6ebfff9350","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":156,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"356e894c-30ec-4cb6-b4d6-b204945bab46","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":156,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"714ad15f-648a-4aac-ba48-6cbf2aa74f5c","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":156,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"9f8b2c0e-449b-4fec-a697-901092c99b0c","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":156,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"d8822f16-051e-4c0f-9549-b7c6e67bd78f","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":156,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"40ad2c39-2098-470a-88cf-9bfaf10bbe18","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":156,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"1ec087d6-4411-491b-a3f1-070e66584864","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":156,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"06654c1a-ef4a-4ba4-bba5-87a21da5dc81","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":156,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"c5f80086-ec01-4aae-ad14-657033cdc7bf","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":156,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"d43e055d-1095-4e5f-814e-4d60b829fa59","block_type":"box","text":"II-126","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"48dcd02a-c4f0-4f1b-8e95-14e51ed1e57d","block_type":"box","text":"NM1026U-5978647-156/232","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"376e35e6-fbdd-4f49-84d5-72add73955aa","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":157,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"367ceec1-5532-44f1-af97-fb4786a82183","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":157,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"217c2c57-891a-4b20-87da-b648d618242f","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":157,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"0839c192-572b-4ec1-b0f9-962941152dc2","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":157,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"75813094-ea63-4d9e-ac09-dd27652e9d58","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":157,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"dff04820-cc4c-4566-85d7-c9d75c727c22","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":157,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"28986986-80c0-4d3e-bbd6-d04a03f45fed","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":157,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"d54aec19-a775-445e-80c3-f8bbbbb98bf5","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":157,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"cb529541-88e7-4fc8-897a-44ef098adada","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":157,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"eb488da2-f5c6-49da-9147-25e63ffec406","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":157,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"eda49aca-7741-4310-9b9d-d52d9b534ef0","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":157,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"0942af24-8e8f-43be-aa61-467d30c2efbc","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":157,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"adcd5474-46a1-41c2-bd5f-660c4270e269","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":157,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"cf83daa8-2d96-4eaf-9485-d869a9673a3c","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":157,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"93b7f48e-0605-4bd0-aedc-b3376762ad61","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":157,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"66cfe3d2-3dd5-4980-86b7-831f1d347e50","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":157,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"db613898-6649-48e0-abea-e3091e89f85d","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":157,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"2dc8816b-e175-4335-970a-a18ceae744a0","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":157,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"ef8186be-76c8-4162-b9b8-bdff6b52e4a2","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":157,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"ee8d25eb-868b-4c96-8b0f-377ea53be733","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":157,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"2ca12cf5-a9e3-4c95-a793-98036d96f7c6","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":157,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"f841b444-5d77-4fcf-b7d3-c69b9fa573e8","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":157,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"62f235c7-e6f8-446a-83d0-a4c8a09a5758","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":157,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"50582d63-4f48-4999-ab18-a515d9daf93f","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":157,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"b63c1253-c880-4d1d-894f-55495ae28dca","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":157,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"a7222b5d-2d8c-4b35-adbb-08fd5a53377a","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":157,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"87e8a3ca-cdd0-4e41-889e-7045bf4850c1","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":157,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"5bff312e-046d-4823-9132-c1a2e0b4bfbc","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":157,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"31261252-05de-45be-b973-c351c45a14ce","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":157,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"59e512f6-c196-4b1a-bd96-17b3a2bdda54","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":157,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"b7dbe29c-f826-41a0-b8dc-d7c646ebd725","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":157,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"36fb8f5a-1c7f-42e5-a930-5ce8d51c4fbc","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":157,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"1c1969e4-3bd3-4a0b-9008-2e41d11c611e","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":157,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"51146219-8ee0-4072-993c-5e816792060f","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":157,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"cbc1e325-87bf-4a59-86e1-b92dd6b137d1","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":157,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"6752c5c0-d71d-4b76-9042-ec67b8f8535d","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":157,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"be415265-244e-4efc-a51f-f9ed01664dbc","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":157,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"3a6776ca-b6ac-44b3-b61c-61ba64e4e31e","block_type":"box","text":"accounts and compliance constraints.","page_number":157,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"5af2bb02-0c94-4653-8d0d-8873bfda02b7","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":157,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"4df59cba-0c1a-4e76-bce4-0cf2c888c2a1","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":157,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"84e97845-7889-4a8e-933b-5564c7ac0487","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":157,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"dcbbdaac-b6ee-49ef-b78f-9cd629f6cb95","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":157,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"9f0e224a-c022-46dc-a1f6-045607f1c524","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":157,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"e120b5ed-09fc-4598-9cca-0be3af1675aa","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":157,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"91e04d04-f830-4100-839e-bed7290f218a","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":157,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"5f876e23-421a-40e2-95e0-f62e49c36f23","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":157,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"0ad7a521-a165-440d-9fab-1091360dec1e","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":157,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"b94b559f-91fa-4e03-8893-27f3337017b8","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":157,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"2fd4fe42-951c-4a64-be2e-452d5585bf5d","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":157,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"cade6ff8-fa0e-4874-a72f-44a6941446fc","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":157,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"5b9eb394-ca05-456c-834e-cda569c847b3","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":157,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"564750a8-e3c9-4256-b5ea-0843283f3d4f","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":157,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"31822ede-bda4-4e6b-a4fd-7f0afa175f6c","block_type":"box","text":"clients may be used as well.","page_number":157,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"d860136d-0bc6-4b8a-8044-cdf165e275ea","block_type":"box","text":"II-127","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a1bdaf31-e766-4a73-9dc6-0ee543046a10","block_type":"box","text":"NM1026U-5978647-157/232","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1c9358e1-6f48-45ec-a28d-daa7f8104cea","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":158,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"425e8543-362f-4145-a158-a19e66e1970e","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":158,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"293d4f7e-5b75-468d-b2fa-36c7754734b5","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":158,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"147d06a9-d668-404a-8202-eb3446055baf","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":158,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"8e5b2d89-42e5-44cb-97d6-570231ca6d0c","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":158,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"873c30be-30fe-495d-9839-223f71128751","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":158,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"1465fdf9-1f59-4ff8-82f0-84ea61c8c489","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":158,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"621114be-fc50-42a9-a0ed-2201d3e79180","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":158,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"2e965478-7120-4f19-9ea4-a605fdecb4c3","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":158,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"773a4ebe-5320-44af-8d26-cfd147f99d01","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":158,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"5a8dfd17-13ec-455b-91f1-0211fd6e4416","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":158,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"01e320fb-5a6d-4c99-a502-d4d5e0709112","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":158,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"2512dc6e-3ba2-4fba-81bd-21b97420a8c8","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":158,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"416d9f3c-6020-4313-ac5f-636d9f216741","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":158,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"b3f4fbb3-b26a-4432-a81c-c81926d190c2","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":158,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"c255d22f-c3d0-4ccb-a924-e5481a767dd6","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":158,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"45ce62b4-54e7-4318-9d30-2b4dc70bed84","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":158,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"8a59690c-e261-4a14-ba20-e5c361dd1484","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":158,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"7f867a50-091b-4038-bc9b-c19ae98e654a","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":158,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"c2a9d50d-38e2-409a-ad73-e8d5a72f89a5","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":158,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"18fd9f35-71e7-4142-9f44-11106b46b911","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":158,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"8b8fe38e-f32b-47aa-a9cc-97f3405df558","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":158,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"2730baad-39e4-428f-b101-c3e5329c0437","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":158,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"8ed7ca5b-0c02-462e-9d0e-8f2b88fb7af3","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":158,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"5fd6503c-eef2-4a12-ba8a-1231e3669ac9","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":158,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"66c8e168-51d9-47a7-9bed-18199d708f94","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":158,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"c54802c0-c595-4662-ae1b-16ce4e7a879d","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":158,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"b4ee16ab-6abd-4c04-a089-05257de25c95","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":158,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"161c8972-0af9-437b-9290-8def68ffc3b2","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":158,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"e73fc35c-a1c2-47fb-92fb-a252a413db80","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":158,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"205b485d-c546-4f4f-8452-bfbeee41667d","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":158,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c4048c3a-3739-4a61-b21a-43a9ef8bdb89","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":158,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"d4462d40-2a1c-4936-b82f-22f63dc0ab0c","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":158,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"4674a84e-917e-4f3a-bbdb-83f64ec9a145","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":158,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"907c4880-c830-42fb-a956-c3597f762793","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":158,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"e54f5a93-0194-44db-87ff-1fec60f583ee","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":158,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"fe4b264f-01b9-4bd0-9279-c9ba18d07c18","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":158,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"843b79df-1c55-48f2-acfe-5c66a1970990","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":158,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"cc65e626-3f3c-4b6f-ba7b-8ed27590a634","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":158,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"d1bda335-c588-46c6-abb7-bced7548fbad","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":158,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"1dd14694-c617-4410-8a47-d292f876863a","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":158,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"49967ebd-c16d-40ee-8c29-8221bcd9f2ca","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":158,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"aed68cfa-5298-4d2c-ab71-7e664aef9fa1","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":158,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"081355ea-bfb1-4617-8a54-b3b2fca517ad","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":158,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"58cfe5a1-5031-4d3b-93f7-f06bfb0d3cc8","block_type":"box","text":"Portfolio Turnover","page_number":158,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"d1e11c3a-b88a-4e25-8622-321d3d85250f","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":158,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"6c91f896-9d0c-43cb-92b0-2c5f3be36004","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":158,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"c6e2cb55-35ab-4e9f-ae43-a14905abf5ad","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":158,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"bf064595-ab15-4115-ae1b-bbc06c986cf8","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":158,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"61047afa-48ab-4b2e-9841-f8da875abe29","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":158,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"6188ac39-ac35-443b-b484-c720172f0516","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":158,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"a301ea95-93d6-4881-ab5e-cc10718dda7b","block_type":"box","text":"II-128","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"03850d33-ccf9-46c7-9593-07b2002b190c","block_type":"box","text":"NM1026U-5978647-158/232","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ad57e5cd-3c06-4940-bc62-85f31228fd1f","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":159,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"0045bce9-e02d-4cd3-bc41-758a49eaad59","block_type":"box","text":"Dividends","page_number":159,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"5b3ef2a8-85a0-46a2-b24f-d2ecf02a9962","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":159,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"9c23e634-9e54-498b-9431-fa531d8f58bf","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":159,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"49d581ac-b73f-4c96-8f56-16e8274a6407","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":159,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"fe6124b3-9bd3-49a3-931c-28484fe17781","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":159,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"d91db1ab-cdba-4dd3-ad40-d553746abc2c","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":159,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"8317e46f-9b7d-4a3f-84a3-923c3ce8e7ae","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":159,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"7d5ed058-0a5e-4e5b-942c-577bc8905e13","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":159,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"38391df6-ba93-4c65-b1d6-7be4875bf402","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":159,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"3f82b787-a027-46bb-911e-c880cf4764fd","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":159,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"efef0376-b01d-4a03-970d-643e3c6191f1","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":159,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"475e54fa-0b1c-4b89-866a-7599425279c4","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":159,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"cbef6f08-51fa-44bf-904f-1827dfbe6c2f","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":159,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"a6fab2f8-561b-44dc-ba0a-3acda6a5d184","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":159,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"1c752245-26be-43b5-8b1f-685ba614a253","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":159,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"1598f3d2-8b74-459b-9938-5d2abedaf94f","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":159,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"7e41fc2f-3870-45dc-9ee4-87ea0e427f31","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":159,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"ac041843-597d-4eae-8107-246f7160214e","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":159,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"7b70891a-9e14-438d-8d4a-13ad466caa98","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":159,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"4b980956-01f1-468f-ae8e-bae1da47ab06","block_type":"box","text":"Taxes","page_number":159,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"8f5a7a11-5c1c-4959-a78e-dc368b94854d","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":159,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"98e1bd18-631e-43dc-86b2-2a40fb4540c4","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":159,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"520e3c8e-8d81-49fa-a505-6a692f70e0cd","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":159,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"49691a91-f2ec-4947-9e3e-c91c079551c9","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":159,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"6fddb54e-6a36-40b1-80c7-59b026ba679e","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":159,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"0ac5e6db-5243-4d1c-8290-c923c8256b9f","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":159,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"ba35d3e8-59fa-4aa4-aae7-55af41a10e9a","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":159,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"dd557397-525e-40e2-96d5-47e1efd5ab3d","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":159,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"18b23571-adf4-47ea-93f8-9386f31b2322","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":159,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"5f002fb1-0f91-4ff6-b7d3-efd5e3b57d4c","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":159,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"4d12de0d-5496-46de-ade1-3b0d54a5d311","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":159,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"215d7f77-bb92-45bb-8055-58b3a0f1979a","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":159,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"69660c08-bc00-4e3f-9aad-a56aa8d7142c","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":159,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"fdc072f1-133e-4f4b-8527-9ee8283265fd","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":159,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"95f2d38c-94f9-452e-83ec-7ccdd32a1f09","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":159,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"7eaa327a-8c95-4d82-b5a9-65769d703e84","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":159,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"3ed2563b-c7c5-4620-b20d-9c1324750f26","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":159,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"1ed2dee2-752b-465a-a9e4-547fba33dc94","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":159,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"dffbb816-9ac9-4f47-b4a1-70048e4e52fa","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":159,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"f02fc133-dbab-4c00-bb21-f0358bc7976b","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":159,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"2b74a41d-e83a-412f-92c3-5fbf94c49e22","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":159,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"6d292d26-e69c-40e9-a8ec-d18f15dbafe3","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":159,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"7451482f-69b6-4f97-8e0e-bff8b6a2b451","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":159,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"f33dd86c-4595-4aa7-8ab7-c945beeef883","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":159,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"a52e7722-966f-4b73-8088-b262007e269d","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":159,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"2a8f0891-9135-4ae5-964f-15c5390dd7f5","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":159,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"c2b6aebe-2bdf-4585-b6de-2de553072522","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":159,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"a5531e84-8c77-477e-9470-c9f8524b4295","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":159,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"8f6e86ab-3e33-46fb-bbc4-7bb55ca6208f","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":159,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"eb812768-bafe-471d-b0e8-58b5d18e7db7","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":159,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"9e3c9aea-9613-41b2-93ba-e12a4d658651","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":159,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"7b7c1539-727f-446d-92c4-ae0de0fdfa68","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":159,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"39eb1a53-3cad-4536-81d6-6e2b9a6f3c9b","block_type":"box","text":"II-129","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ac95991c-2989-4dd4-a53d-57cef78039a2","block_type":"box","text":"NM1026U-5978647-159/232","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e306e199-e6b9-4c88-a711-9280d52af9a3","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":160,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"469b1b85-9bfb-4573-a40e-73cc3201bce4","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":160,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"3b74700c-742e-4bf8-b0ac-91ec5dbe3985","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":160,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"c8b9f21b-3000-4b8c-9773-3d4842b6bb05","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":160,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"bfbbbb22-a890-4ef1-8b3f-3ac6b105f8d0","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":160,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"4051fe12-0e72-4d3a-90ec-2818b30eb9c2","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":160,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"46b43c33-6cea-464e-9359-3fbc20e1d91c","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":160,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"67fc639e-1c29-498a-aa1e-cdef6793dace","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":160,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"052fdc5f-9f2d-4654-8e8b-cdb4c18d322e","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":160,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"265630ce-04e8-406f-bba8-ba99afd28085","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":160,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"6ec3e344-b089-4171-bb27-5fb052f094b1","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":160,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"da5ccd8d-5a93-4f74-a3ef-7fbb4664b4cd","block_type":"box","text":"limitation.","page_number":160,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"f267c691-cc1e-427e-8247-7df7a0910789","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":160,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"8b6b814c-bb6b-4652-b1b7-d11a153e7b3b","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":160,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"400a9000-88e3-465f-956e-a64a7764a363","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":160,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"a87eff99-b1d1-4060-a1d1-5f7cc915d5ea","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":160,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"446b7c3c-74bf-4353-874a-d77a0326faee","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":160,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"f2ddfe2f-69b4-4aab-acd2-a2f4038dec6b","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":160,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"cfe71815-973c-4fb0-a517-a2b2d8d75623","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":160,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"a97b8c9e-5569-4b71-bcfe-a7c3e9231949","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":160,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"2260ef6c-3352-45ff-93da-52cc886a9288","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":160,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"a6a4bebc-c08f-46a2-984b-7dfcff05f660","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":160,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"c2d8ed71-8887-4332-842f-c5976429f6bd","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":160,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"3084a242-e1fa-4afd-be9f-e10116aea5bb","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":160,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"b2f074f2-af0c-42ee-9c1f-b66edc3ea705","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":160,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"9b087c3a-68d3-4cb7-9a73-c2c5945c4a64","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":160,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"f71c0567-76fd-4f94-b53f-40f3c323d591","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":160,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"9eb09f61-f7d1-46fd-b351-87afc0eb3f32","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":160,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"ab0a08ed-62f3-434b-ad9c-504f9f10712a","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":160,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"b109baeb-715f-46e4-b597-1d4e5daf0280","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":160,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"c08619ba-7bd8-45de-92da-bddfb4e3ccba","block_type":"box","text":"constitute “qualified dividend income.”","page_number":160,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"937593b8-4723-42c1-aea6-a8c99f930bb6","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":160,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"e0d68d47-d94d-46b8-84ba-d9fb2d1b32e5","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":160,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"424ab9ea-d235-482a-829e-77c63da5e633","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":160,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"e197d1a0-85d4-4cf4-9a5e-78f45c4b50f7","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":160,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"8f5f1c59-72cd-4371-9acf-9c565385ccff","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":160,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"3d288766-c8e9-4d54-a984-56c75127c76e","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":160,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"65d270b4-cb82-474f-91d1-af27bc33ccd4","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":160,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"cfa241f1-8cb8-4a1a-86b7-02ed08bb515b","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":160,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"3d634771-b1c1-4fda-b42d-f868cd623c25","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":160,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"79105747-2228-4802-8a45-ac247aedb220","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":160,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"7e4497d4-27dc-4080-aa57-c163f406f7a9","block_type":"box","text":"against their taxes.","page_number":160,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"fe824e5a-2b6a-462f-8236-5809bcedea07","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":160,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"d96aed2f-d993-44ae-be70-482b333f9861","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":160,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"9dc167bb-98d6-4f76-9288-f13afd166fe9","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":160,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"84d36530-fd95-4ffb-9877-42e08eaac986","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":160,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"edc593fa-9283-4331-8e29-11f870ffe8a6","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":160,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"9db178e9-7fda-49b2-bf4e-0b48ff0f372a","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":160,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"81b8a73a-09db-4723-ab18-46b1eb91d9b9","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":160,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"588877c8-25de-4ef3-a36b-11b6652ee17d","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":160,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"175d6666-6cad-4079-b409-d1c24c52657d","block_type":"box","text":"dividends received by the shareholder.","page_number":160,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"0e63d005-f61e-408f-8793-a418e7c4a8f5","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":160,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"dac75561-8665-4d4b-a87e-b8888b4259b9","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":160,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"a4f88915-9889-4547-9626-82acbc2930e3","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":160,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"fdea490a-7849-4c19-94dd-184267281d26","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":160,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"31d41e24-6862-4de0-bc88-3f4f1c2eaee4","block_type":"box","text":"II-130","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b85cd2c0-0d30-4f0d-a621-eaf8e0d4e90e","block_type":"box","text":"NM1026U-5978647-160/232","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e575383a-f17a-43c1-954c-83c42608f9bb","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":161,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"0a1c657f-a158-49da-a78d-002ee6761284","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":161,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"71897629-35a7-45f4-9acb-d5e68c739d37","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":161,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"671c209a-ef6f-4af1-9365-72816791515e","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":161,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"79012251-62f6-4b9f-97e3-058bad1ae88b","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":161,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"748d14cc-002b-4dfd-9555-93f8ae025157","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":161,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"232da0be-d0c1-4cf4-8fa1-6c2133fc43ec","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":161,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"f67327c0-743c-48a6-a05e-50523fa4a20f","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":161,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"93e7dab6-6f9b-46b4-a7d0-7a5de838be56","block_type":"box","text":"taxable year.","page_number":161,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"34a60b81-d74a-4059-84c0-85582bade12c","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":161,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"c469a7d9-74ad-4ec9-ab76-be953fd4476d","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":161,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"f1d2d702-a476-43e4-bc28-9afd910ec296","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":161,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"efa89682-acaf-47b9-944d-0845e9c53f43","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":161,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"91086da0-975c-4d76-9c99-cf7420217779","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":161,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"a0f13573-7e1a-4035-ad2b-5f15e83bec69","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":161,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"f0feb4bb-2060-4653-9eb6-06176ff8862c","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":161,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"b3809a8f-4201-43e1-982d-1dc8e2244aa8","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":161,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"6829e1fe-984c-4cd4-aac1-be64061e65bb","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":161,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"b7dc6440-586b-4f8e-b606-633358c10df5","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":161,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"705d6880-204d-43ab-a8cb-f5aff153625a","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":161,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"fd2e0425-6cb8-478b-9d4c-eeb15edbe178","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":161,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"3d691385-836b-4dae-b968-b7aa10e4ce58","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":161,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"9867898b-2f07-4876-8ac2-6a304bfa847d","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":161,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"50dfdb68-ddda-48dd-94be-908a1203b180","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":161,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"29cf4594-047d-496e-95e5-700d03dc1cc1","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":161,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"ad92efc8-20b4-4664-8903-79904c8e5608","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":161,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"3f8d8585-ba0d-4357-bdb0-a956fb1d0794","block_type":"box","text":"special tax rules that apply to their investments.","page_number":161,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"f715a0ef-25ca-4761-b017-a3e521cc959b","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":161,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"5a40e39d-1202-493f-9cff-f891c6d48402","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":161,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"e69eb248-7d8b-4262-8b43-df624c73b462","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":161,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"07e1d112-4c22-43a6-9652-511082bf7245","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":161,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"eb921ffe-94df-40ad-8fb7-1a4d9c931445","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":161,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"b848f44d-bf84-4c53-8429-9cd83582c56f","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":161,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"1346c302-7dfb-45cd-84b9-80142d72ca25","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":161,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"06a85852-2560-4d10-9645-374e6967799e","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":161,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"39089110-6927-403f-947a-f2210be0b271","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":161,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"515c4f63-a659-476a-bd18-51176ca2b5b4","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":161,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"fa3dd350-9985-43f4-9cb4-9decdd0aef46","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":161,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"cfc8a125-b369-4642-9516-e0bb2608fae5","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":161,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"3fd45e92-e166-4dcf-b519-0b553f3a3f38","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":161,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"c329b772-5aa3-4b35-986b-223430f19d0b","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":161,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"650e0210-adfb-43ab-93f4-ec1ff32c3749","block_type":"box","text":"redemption of such shares.","page_number":161,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"5a97cd8a-e75b-4ca1-831e-34889b251001","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":161,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"4f1e5dab-249a-472a-b0d4-ddc80373a001","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":161,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"19ac6baf-34ea-4e67-a7a3-c040fa5cbb49","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":161,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"02d5573c-c165-4c2c-b26d-37d07e48a869","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":161,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"e1277f22-93bb-44ee-8bbc-c320e7e82863","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":161,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"f6f05812-76c3-48ff-810c-e830059c9773","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":161,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"7ff93af5-7d1c-41dc-ade1-deed73a2cc3a","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":161,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"8640711f-4949-4a2c-a85b-fa423e815ae9","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":161,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"4926eed2-5e43-435f-b4be-602a3e949978","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":161,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"91df9c49-425f-401b-9ee4-cff97db6dd17","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":161,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"9cae56d8-d28f-450a-b04a-14a5773dd720","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":161,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"2ac0a370-ede6-47c4-b0eb-34d78ab86242","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":161,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"82e6d863-55ae-422b-91f3-978c49c40b45","block_type":"box","text":"II-131","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9a37a5c2-b46e-42ab-bb04-e2b3e41a8d7b","block_type":"box","text":"NM1026U-5978647-161/232","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"050746b2-4df2-4ce0-8ab0-9283e17fcbf1","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":162,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"69657934-96d5-4ea3-8682-1fe4c6c9e274","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":162,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"6e6142c1-2911-4eec-a3a1-279d1e0d9078","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":162,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"5805c3f8-6f64-4146-a717-c99035db8d0d","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":162,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"1e962edf-84b9-45d6-8ba0-5311bfcb73d4","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":162,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"b7be3c52-6c9b-4e83-be98-57daac59c5c1","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":162,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"c03bd006-3cd1-4d22-8065-f291341eb4b2","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":162,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"f07f09ec-90fe-49d9-bf3a-990bc9d70633","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":162,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"61394b6b-dc50-43ef-8758-99a75fa85b82","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":162,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"02445120-1f2f-4af1-b4de-b33327d508d8","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":162,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"a26942a1-9ae5-4bd4-998b-16a4cae7712d","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":162,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"a524a69d-2456-4491-b950-6a4aa0de0e32","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":162,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"005f0031-5147-4b64-aa8b-900d9139d14d","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":162,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"7a5a348a-835b-46a4-9208-b715038c429d","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":162,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"97019001-6c63-4751-b3dd-c5dd1f9c5119","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":162,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"226add96-aefd-4f3c-b123-cc3d2bba68e2","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":162,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"b71f0034-bbac-47a6-819f-1c0e11abb8d3","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":162,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"abeb7bbb-9141-452a-a66b-a56bb97557e2","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":162,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"739625f4-8e95-4c9e-9833-6f6977b8927e","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":162,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"c74ea0fd-7a06-411c-9a00-edf621145c16","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":162,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"f5376a3c-14a3-4c1a-a8ef-3840386ef7f3","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":162,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"6cf66b5b-bd1c-452b-9c12-1a3c6d963fcd","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":162,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"d236f986-b2ed-49f9-9f7d-e2f8edc6ec0e","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":162,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"0c0d8ff4-6230-43c4-812c-6809d8cc1f0e","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":162,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"c03d6f36-8115-46b5-aed2-4b7bb5565e44","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":162,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"22ac4f88-298c-4185-83bd-48f192d638df","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":162,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"3e201123-d4b4-4b67-8c94-4f838c0197b0","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":162,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"9a9df295-b6cc-49a5-b681-3b4b49b8cfaf","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":162,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"37a72c0d-f645-44e0-96ef-ea46cb838a01","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":162,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"3bad94e1-78e2-46ed-8f14-f144acb8164e","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":162,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"2614362d-7944-4ca0-a095-b9703642e237","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":162,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"be8d9884-fc4e-47b9-921c-d9c867516201","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":162,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"487beaaa-fc65-4d9e-a11e-f9157bb3314d","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":162,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"b94c2007-3380-4dbf-a1c7-1f6b68bd3be9","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":162,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"eb041ccf-356a-4cf6-93a7-e0e28573db3f","block_type":"box","text":"in subsequent taxable years.","page_number":162,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"1946acf9-8ed6-4780-8202-b435c2f83e43","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":162,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"395941c8-7b94-4784-8863-2a733c3bc06b","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":162,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"4bb84fee-1669-497e-9446-0561556bb14f","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":162,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"ce390116-0134-4b70-9184-8c074d037e7d","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":162,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"91c4b079-155e-4ddf-9437-81c268914bfb","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":162,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"afb876ff-8e4f-4b01-a1d3-b2ba35b3ddc6","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":162,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"97a15257-96ef-43c3-b783-82ca9b6c4f84","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":162,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"ffbd45bb-6f46-4824-85d7-f2dccf302d63","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":162,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"45202ce8-f9f3-48be-998e-d93f9258aa44","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":162,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"e3541b81-51d1-47e9-95c4-48d351c1cc22","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":162,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"42c9536e-b801-4428-83b3-f308b85a3fe9","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":162,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"0d0c1e5f-e716-49c3-bdfe-7f0d1e44868c","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":162,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"b2f55ded-550c-49b5-bbe4-ce6ca794ee86","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":162,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"197834ab-95c1-450e-8b37-7cb40f7cabcb","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":162,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"8c17f469-e8bf-424d-8357-66e7a4ef4083","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":162,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"1051d7fc-81ab-4d61-a994-404b81a0deaf","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":162,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"0d01026a-4ff2-4b75-a7ad-d990dfd50c3f","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":162,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"dafcddb7-c726-439c-8506-46ae4751ae10","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":162,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"e7790628-1399-4bd1-af60-485314124b63","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":162,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"fece00f0-fb16-42b9-ae23-61e3539bda2e","block_type":"box","text":"dividends under these rules.","page_number":162,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"2c3598e2-df1e-40f4-815c-79ac44304030","block_type":"box","text":"II-132","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"28ad2fbf-2ead-476e-a768-f08fcd3c1869","block_type":"box","text":"NM1026U-5978647-162/232","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cc911a41-3b24-4412-8f7b-2026a33b14e2","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":163,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"cc146300-cca6-47e4-bcf3-b273ccb28c5f","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":163,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"51ada831-5059-4c20-832a-ac31bf8348bd","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":163,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"dd7e29c3-ab1a-4a33-a1df-8b262c84ea59","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":163,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"f0114fab-a487-446d-af38-a9e0b489f300","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":163,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"60ff9cd2-0bed-4ae4-bf76-bad55b146e5d","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":163,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"5bdf2f09-c006-4609-8aa8-715f176da143","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":163,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"43c72d8e-912f-439c-9c30-ed7d90681492","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":163,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"6f521310-60df-4c3c-a46b-a674e432204e","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":163,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"cf1e5268-fe43-4fd9-a527-00bf5537e84e","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":163,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"a5a238d6-391f-426d-a910-852183cf5cef","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":163,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"7fdbfe9e-bff7-4f8b-825c-32fd30509e98","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":163,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"9fb65fef-ed17-46f3-a64f-6d899b3673aa","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":163,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"952b6d50-cba3-43bf-bd02-c5c41bf5ee99","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":163,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"67ef62df-2c64-4fa9-901b-45a03569f441","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":163,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"d1f1698c-bf60-4471-b65e-191136efdee4","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":163,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"72c8f35d-acf1-449c-afaf-12731adec8b3","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":163,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"9637f556-469d-4c37-882b-83a840a6801c","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":163,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"559ec835-b646-4a30-a531-7463bd6db941","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":163,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"1ba588fd-659b-4620-ba6e-e56992494e26","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":163,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"113eb308-f0e2-423e-99ba-9508ca0d9236","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":163,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"d568e519-c6a7-4743-8142-23e6e222d8b6","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":163,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"8998eff2-36af-47d3-b1e1-f11822895995","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":163,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"6e62987b-602a-489f-9944-b8ad36de238d","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":163,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"08503783-e335-4961-9400-ce49dba46f92","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":163,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"dd93b887-ee4a-4835-a77f-85c1971a65f9","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":163,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"902d319e-f57d-4fc4-b192-628b85adb1f8","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":163,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"41d18a39-56b4-4f4b-8ac9-a467d01d8bbc","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":163,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"56a20d2e-7e82-4f7e-9865-efd19f86dcfd","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":163,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"c173859d-6cd2-46ed-abf2-8d4a3fc15c58","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":163,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"732727d8-a698-4572-a78d-552a66b6b5bb","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":163,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"480a2b8f-b804-473d-8567-54aae35b3f7d","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":163,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"78094005-d5c1-4f85-ab97-a981a39feb1a","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":163,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"02f74f71-256b-4276-a46e-b64e7f3c6e6a","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":163,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"012ae53a-4464-48d0-b8c0-4fdce744e52d","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":163,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"8133d61e-27c7-40ed-a75b-cb2d94b72bad","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":163,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"a573b05f-0da0-4d8a-81c9-4ab7f7179700","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":163,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"5e5234ed-2dce-4067-a6cd-254f79fd7b76","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":163,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"a8cbcdd8-ed43-4cd4-b57b-5142c5ec2468","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":163,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"10aa1169-f363-4f01-86cd-5c6d34ef0299","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":163,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"0a24150b-743c-494d-bd7e-76c6953e07c8","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":163,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"53f50ca2-605a-4e68-ac5d-78637c69e0ae","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":163,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"3f1ae319-73b1-4bfb-a324-c4d5e6c59767","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":163,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"23f3ed88-4bc6-4bff-ad73-b34a373e592d","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":163,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"b94ec3af-4d2c-4460-aa0a-e814c6cac5ef","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":163,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"3322a457-2c65-4731-962b-0daec8c5df81","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":163,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"41a28c70-88b6-4b0e-a03d-f7025aeffe59","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":163,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"4a080033-1b05-484c-ac80-4438a954fd15","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":163,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"37d518c2-bdba-4715-8a9f-ab653c7ff7f2","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":163,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"93615780-73b5-4e75-8342-cfb25a03069e","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":163,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"f618020b-8ec5-4051-9892-bb5bad3f6a20","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":163,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"72d44f3b-9eb8-46a3-bbf1-2ce47e37a37d","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":163,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"15ebb62d-c844-4385-addb-bc52676fdc22","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":163,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"da1ef69a-f712-4480-9622-f6a1a93cfa17","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":163,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"5f3bd2c6-bc31-4f6e-8fae-3f15505451df","block_type":"box","text":"II-133","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"313e483a-f440-46bd-8426-91bf5710087c","block_type":"box","text":"NM1026U-5978647-163/232","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b517072a-fbcd-49b7-a5f5-f8991d74a7b6","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":164,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"4f6c03ae-00f6-4294-ba6a-560a5b49ee71","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":164,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"679b036b-bf57-436d-94d4-0782f90eca91","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":164,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"41573661-880b-4b2a-a8e4-b54b2fdcdbbb","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":164,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"c3b5b002-7701-456e-98a9-a30df0d8597e","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":164,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"5e9afef2-bb05-4658-946e-10d1ef22772d","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":164,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"648d61f5-d0a8-4144-8e16-31d4ef631551","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":164,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"970fd301-3f7a-4c6e-a42e-68b2a34be392","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":164,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"e46bc4c9-5c94-4cc8-ab8d-a44df4579447","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":164,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"c249f3f5-8ff5-4059-853c-3c9ec43c3faa","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":164,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"61691f9a-182e-407c-a0bf-8953017f0556","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":164,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"17010f08-5457-41d0-af4f-d8b7915a078c","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":164,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"f3515cdb-0af6-4c1b-8685-58ddf4702a82","block_type":"box","text":"investment oppor tunities.","page_number":164,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"62ba29ca-ce55-40bd-a3ac-b33362192166","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":164,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"1091aae9-4496-4dce-9191-8acdc4a6ed85","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":164,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"0c24fd74-47da-4952-9563-c83bc0f06901","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":164,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"d4e7c3b7-13cb-407a-af67-ad05b794c76e","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":164,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"8ab616da-22de-4fea-8c0a-aa94d4912693","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":164,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"03856b6d-ade4-4dca-abcd-600078d06c93","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":164,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"f84dcd07-a11d-4278-946f-18d2e504c215","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":164,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"2a603aaa-7d66-432f-889f-ccef57aca768","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":164,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"05eb53ad-612e-4b49-b5cf-bf3384c15a1c","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":164,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"34d551ea-9f0f-463b-aa52-6c7ae2aad00f","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":164,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"649557da-17ea-4e2c-baa7-7aa26783e6cd","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":164,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"bb14da0a-3ee7-4daa-9aab-b8f2d69eab79","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":164,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"d140d2a7-1594-4687-b011-478643d73918","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":164,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"76fb4f49-14bd-4aad-b9ca-6c507a24ef61","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":164,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"bd81948a-cac6-4661-b13b-cb403d849c56","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":164,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"1bdb227d-4509-4b2b-a4f1-9729a0b4ea22","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":164,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"402798a6-924a-407c-b9fb-ae27e5ae8cbf","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":164,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"e5495700-0f86-4906-a1de-b7bb25289466","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":164,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"f75510de-1779-4189-b2da-d9fd8ed75f1b","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":164,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"5f14c758-85b3-4126-b59c-01fa7758b6c5","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":164,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"979829c9-38f1-4185-991c-cb5caa317104","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":164,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"a04dcf40-15ac-4745-99c0-2697eae12c86","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":164,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"13f86ccf-cf7f-44de-8258-c85ffb37ec70","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":164,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"c818c619-050a-47ec-9ba1-747091228f40","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":164,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"87543c8e-be44-4a1c-9378-9e61cc2da32b","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":164,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"b3d58d09-8b18-4894-97ec-cca39857111e","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":164,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"1a901fc8-c8ce-486c-8628-96f894e71951","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":164,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"8defb783-b451-41cc-9bfe-92d9f3b596da","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":164,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"10f88046-83f0-463d-a209-da198a13d7e9","block_type":"box","text":"positions in its por tfolio (","page_number":164,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"9502aec9-c2a9-4906-960b-9412f91693cc","block_type":"box","text":"i.e.","page_number":164,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"78340373-497b-4527-8454-185578feb622","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":164,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"89394a4c-9f31-4923-9d5d-21f4b5addb7b","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":164,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"9af829fd-9339-4f4b-a1dc-3dcf752e16cf","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":164,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"96592edc-51e1-449f-95bb-abf6f544f502","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":164,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"5d98f265-8038-4020-9d5e-1b95c5a29fbe","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":164,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"ae96768f-c500-4278-87e0-598f1fef241a","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":164,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"4ea2bcc4-ba3f-4d5a-8683-eb8d0043a91b","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":164,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"78631bb0-84a7-482b-94a7-90f96a17be57","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":164,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"f7fe3cb1-8cef-4f73-8a2a-9da5aef8ff0a","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":164,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"8f6d79c9-113c-4434-bb1e-c191094bfdbf","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":164,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"f1f2f39a-8b83-46bb-8cb6-9e7b9d2956d8","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":164,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"51828daf-3c4e-4c43-9026-a46dc174ded8","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":164,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"8c54b104-dbe0-4ab0-8248-9813df5df422","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":164,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"60bd9b1c-8fff-4833-aadc-352a7d4a657d","block_type":"box","text":"II-134","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5a3e0929-270c-453c-a5a5-193a2339f45d","block_type":"box","text":"NM1026U-5978647-164/232","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8975731a-40ff-4de8-b7d2-8a0ddb7108a1","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":165,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"7b795266-bfca-490b-a7a1-dc0231350b3e","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":165,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"c938b328-7272-4feb-b430-ba356cd1a133","block_type":"box","text":"capital asset.","page_number":165,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"dc34c966-c1cc-475e-aacc-ce6f11bcce0a","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":165,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"3e96bfcd-134e-4ef5-aca9-52bb58da640a","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":165,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"bc69ebbf-782a-4124-8729-a11378ab76eb","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":165,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"4ebe0e97-2a80-4e5a-896b-2d498db1b0d6","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":165,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"c3871d8b-5e6a-4781-9307-f67c9e325e7e","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":165,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"6926339b-cf9a-4f5c-93fb-6432852b1604","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":165,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"2fd9cc51-ffa2-49bc-afff-e2ea3d1af36a","block_type":"box","text":"Fund were to invest otherwise.","page_number":165,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"72d82379-227a-4528-bd66-608c041809e9","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":165,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"85923820-c702-415b-9455-037825e30874","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":165,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"8616ae0b-57bf-4811-9245-5671447198fa","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":165,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"0a29c654-277f-4087-9781-21e692c0aa0b","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":165,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"6347cc0b-7cee-4a81-813b-4972462ec1e2","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":165,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"3ed7dcbe-8710-401f-ad21-fb8e70856bf6","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":165,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"35c2dcc6-a290-4517-82bf-e07ae271dc69","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":165,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"d7bacc08-4240-40b8-90a6-25c1c920c73f","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":165,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"0f6beaf0-dcd7-40a2-bf8b-544180e2db32","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":165,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"371b524f-e996-46df-ab49-7d2e30ec33ef","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":165,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"c89b0c37-ba1b-4ada-9387-19676fb3ad54","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":165,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"71eb1ca8-154f-4c2d-8468-b41a7cc8c207","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":165,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"7a912ace-7595-4433-8910-f51e570ccdaf","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":165,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"ff9d34d3-36e4-44e9-a51a-e85af94267b2","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":165,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"1b73f460-858a-4a42-9d50-b983057be5a7","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":165,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"fec5928d-4547-4a58-94e8-6226c3fbe2d2","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":165,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"ca5f3b45-3dc4-4b6e-85ff-987167a03a9b","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":165,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"84c6bfbb-5e32-43cb-a34e-be104aa7ab67","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":165,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"c3cb3bef-e563-4235-884b-4543dbcbb55a","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":165,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"9627f53e-998d-409c-a454-fb95644f8b90","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":165,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"33041d1c-bbde-44dc-aed1-594ddddccf1f","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":165,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"22eeb289-c747-4e4f-95ea-903468452bf6","block_type":"box","text":"PFICs.","page_number":165,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"b5b26cd8-0ba4-4a5d-a7a1-29a2a9f3c516","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":165,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"3f025bc0-43df-4bcd-a1e1-8f156b0170b8","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":165,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"2d8add8c-696c-48a7-aae7-f64c014333b1","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":165,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"08387b1d-4cce-4258-9af3-65b075a607ed","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":165,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"aae77640-b07b-4780-b513-df6597cc5ff5","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":165,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"c212a416-cfe7-4de8-b2a5-168821f6eac9","block_type":"box","text":"difficult or impossible to obtain.","page_number":165,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"7bc646c0-10b1-44bc-8dbd-4bd4e52e19e2","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":165,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"e97b64ea-92a4-4701-9b77-ddb47ac5135a","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":165,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"774140b8-558e-4cf6-aae6-76348cc5af58","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":165,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"157ccd5a-84b6-4284-a0b5-949ad26c00cb","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":165,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"f75e006a-0e99-4d85-abfe-afa958143ece","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":165,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"320d6b38-d3ce-4937-8242-e5fd9168f948","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":165,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"0ff89a7e-9abf-443f-93bb-a9ce0b8b5ee7","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":165,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"8b89aee3-fa71-475a-b046-ec33427e7399","block_type":"box","text":"Municipal Funds","page_number":165,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"36f3330a-5ab8-4bf7-aed0-8ff1d0aeef48","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":165,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"84eaf892-b642-41ad-8118-940784954bcd","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":165,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"416aef2e-9046-46fa-b537-d25514d3c001","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":165,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"77c5ba75-594a-42ce-802b-a5e148d8c5f2","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":165,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"272c49b3-e45f-4d4b-86e2-0eb5bcc2b69f","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":165,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"43f1956e-3f9f-4d14-a8e2-0a72d50a37c5","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":165,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"e1c18c4f-e7b1-455d-9b57-99302e7f1429","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":165,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"f59b8019-1c84-4e15-a63d-47acbce0a2d9","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":165,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"16a0d8d9-11ba-4122-9293-720feca51b4f","block_type":"box","text":"II-135","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a69e409a-418e-45d8-8840-a09cae2b8d66","block_type":"box","text":"NM1026U-5978647-165/232","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7490ab50-8ea4-469a-ba6c-51036a374129","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":166,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"16492f02-8219-424f-9e16-3c32d75a1731","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":166,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"3df0d413-598a-414e-a1b4-1204f390b567","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":166,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"b88a1aa9-a39e-49f2-96e2-dd51b95fcc64","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":166,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"e2986043-2e66-4dfd-9e97-3a2ab7b7e6b3","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":166,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"f2d57901-6cca-4640-814e-6b8c0156c299","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":166,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"f63970d6-92e7-4ae9-adc9-a71232f4d175","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":166,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a149252e-8b4e-454b-8712-f73022642c70","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":166,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"fddf5cdc-d20b-41ee-bc63-f37383532b64","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":166,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"cfe39c52-df7a-4653-af59-6d3180917ac9","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":166,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"d581b5dd-74e4-49a2-87ce-fe0ba94599e8","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":166,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"202508bd-c61d-4f9e-beae-d41a0a77fa33","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":166,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"081ee22d-c8a9-46a7-9e3b-1544119efb9f","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":166,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"d4bc4105-b318-439d-97f2-fc02530ae1e1","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":166,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"00defca4-a812-4264-b848-17215e1813c7","block_type":"box","text":"constitute exempt-interest dividends.","page_number":166,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"f0a4f813-e830-4141-8fdb-bd15c8eb9bf8","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":166,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"f7cc21d5-80dc-4b12-806b-cd53ba50fdb8","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":166,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"ac8b0ce6-dce1-411f-9d85-04a38e6068bc","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":166,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"2a48f706-4c62-4743-bd2a-99f24d6e65f7","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":166,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"5476cb3b-06b3-4e3a-97ed-dc3715a23978","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":166,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"825718b3-4c37-4432-865c-fcc4b55a7171","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":166,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"5f89d8f3-282b-4cee-b306-ee8b49c3b2b8","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":166,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"af8bfde2-2080-4d0f-b2db-27f5c99a8696","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":166,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"180e147e-321b-4cb7-a824-37e1814961f9","block_type":"box","text":"income dividends received by shareholders.","page_number":166,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"0a634433-2f17-44e3-a0dc-1cae420e7abb","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":166,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"48ded66d-da69-4814-9342-67ec78cbac4a","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":166,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"709c9401-d9c8-492a-b4d3-c7cabdab5658","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":166,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"0d21504b-1adc-4169-802f-420a5d429edf","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":166,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"f341cbcc-42d9-4b44-915a-b50b4eea87a0","block_type":"box","text":"the accrued market discount.","page_number":166,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"bc012435-ba5b-4423-9e2d-869cad445b80","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":166,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"d3d883ed-2d89-456b-aadf-f3579aaa086f","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":166,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"4c378702-5031-4930-a40f-ae05479ba987","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":166,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"f583c5d3-9187-4455-bfc2-8a7e8ec0cbda","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":166,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"21c31d02-242c-48ac-896d-f950289b5e75","block_type":"box","text":"e.g.","page_number":166,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"f78c5299-81ed-4fee-8e7b-520d003baf4c","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":166,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"9362b0d1-105f-4ddb-bb0d-2beed429edb0","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":166,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"5b109e37-32e7-41e2-b19b-1c55926c91a5","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":166,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"3df1c56f-60d1-443f-b1bf-ab3b0660f288","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":166,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"ba7dee65-857c-4e42-8d3e-90b0cb7e10ea","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":166,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"bb9b7ab9-708d-4c6f-b3e8-627b3f15e32e","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":166,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"e69273d4-5d81-49b5-86f7-189f559da154","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":166,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"0958b169-880d-4ab2-b940-d12215ab4e4c","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":166,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"0834fe91-f1b7-4569-b44c-cbcbfdfdd8cf","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":166,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"01d15291-00fe-4f48-a538-7021e40a79f9","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":166,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"eebf6f21-5c6e-4a39-8f57-c3f397fc0a96","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":166,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"5796c7c4-67ff-407e-aeba-7963289e9e91","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":166,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"75debc2a-eb8b-49ee-b7a9-b832fcfe944e","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":166,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"6a73f738-b76c-4e92-bc34-4d8acfa922c0","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":166,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"87cce977-dfcb-4241-95a2-368785f4148d","block_type":"box","text":"within each applicable state.","page_number":166,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"8668aee3-5b29-452e-9c66-6f5358f3cdcd","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":166,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"63570f4f-b5be-46c0-b036-8e30d0d13a3f","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":166,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"1c03a376-472a-48d5-b93a-16ccee3dc4bc","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":166,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"49b04066-788e-4d7d-8401-d630546cfeb7","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":166,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"82b8a991-1426-4383-8e30-29d249951673","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":166,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"edd061ea-02fd-4087-9436-5bf2e1c427d2","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":166,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"22c6c905-b46b-44d6-b860-05ea849c2abd","block_type":"box","text":"II-136","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c5577b1f-7c36-4c31-80b2-a5aafac48615","block_type":"box","text":"NM1026U-5978647-166/232","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2cc734ad-8651-4573-b759-8e7ae5ca2d90","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":167,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"e72e23eb-4fd0-41d0-9d73-fc16dd1bc6b2","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":167,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"18a927cc-78db-417c-a097-ad3978a5a059","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":167,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"c198b535-73cd-4dc1-af1c-e310d80cc261","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":167,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"ef9ee19d-9a2b-4c0f-a18b-745ad2db1632","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":167,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"886023be-d0cb-46db-b9fb-4c14c375cf35","block_type":"box","text":"exempt from state income tax.","page_number":167,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"85a350dc-6427-4a66-a8b6-7d55a30746e8","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":167,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"81b0457f-c167-404c-a590-731fb790d4e2","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":167,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"5ce6d3b2-c030-4ac5-bb14-4552f2130ebd","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":167,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"2419a226-7d31-4612-8744-c5fdbc12612e","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":167,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"049e3ac0-367d-4e54-81fa-e54955de2695","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":167,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"9f912064-22fb-4dcf-91ee-92a99c55eb2f","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":167,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"0ae38c1d-f2da-49c8-9bf6-8a4e4fbe8568","block_type":"box","text":"decisions may have a retroactive effect.","page_number":167,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"79f26203-c3f4-40ea-aa19-1bcdab77f9dc","block_type":"box","text":"PERFORMANCE DATA","page_number":167,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"81be202f-3429-4816-a7b8-fa84dda63724","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":167,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"c401a9c6-7f31-4e06-abd0-0347e58d2c78","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":167,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"157737c1-653d-4aaa-80ce-550fcb9935c5","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":167,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"7fbce338-f1c3-4b79-93f8-fad5e6fc4e9f","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":167,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"f886e0d2-99f5-454a-8e15-b1067be93d2d","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":167,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"6bd4c053-546e-4ec9-93dc-dbabd91a0659","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":167,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"cf2fb8a7-7efa-480a-8a65-30a95e1e204e","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":167,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"bde135fe-d1ec-45ee-b177-85aa2b4e97f1","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":167,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"c990c8a4-6dd1-4446-8dd9-89629eba7231","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":167,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"85df5661-8935-49f0-9778-a7115712675c","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":167,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"065025a0-3934-4a5c-9b1e-c9f44360bcfb","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":167,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"58909980-88b7-4d3c-9986-8cee05598538","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":167,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"8fa6dc9e-46bb-4742-8b57-fdae2d49a876","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":167,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"76602f4a-c326-4748-9868-79cd94104693","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":167,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"67ff08c3-de4c-492e-934d-07556a577f65","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":167,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"1191f2b2-d933-4940-ba90-0b2b2f4f1eb8","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":167,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"3b13c328-f171-43a7-8591-77c592969948","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":167,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"ffa6e51c-f71a-4be6-8a26-35e6fec2ba48","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":167,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"12ac2da1-51ce-4ac8-b916-889ca4245ec7","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":167,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"f613564b-2bee-4ac2-980b-82374fc7a691","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":167,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"8d00e0f1-c62b-4e6d-976e-7c453e7c7e7d","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":167,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"38d0fe2a-de37-46f4-9898-fa922f383500","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":167,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"8686b225-1df2-4944-91c5-942da5595517","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":167,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"854eba91-f78a-4b59-8943-d9aa58e7f99b","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":167,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"2fbd63e6-749e-446d-9cd1-1b14e4e9f29c","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":167,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"42efdb3d-2a9e-4f83-b279-62b75b9bd4e2","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":167,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"552b3a2a-6d5b-4064-86d2-f1b9dd26cd1b","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":167,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"8ac8acfc-52fb-42e3-a153-b2fe96e675a5","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":167,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"d8b0f630-5b2b-4a5e-a909-82d19260ad83","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":167,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"6cfed944-e48b-47d6-bc57-9c15c2bf5398","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":167,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"e53f9d8c-f470-41b5-91d6-197686a5d817","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":167,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"7400b6ad-4d36-4dee-a351-b59a05e8f43e","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":167,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"428f7cb1-619f-4d54-a924-abe3c1c8031d","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":167,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"3fe7c28f-a45d-43ac-887f-e9392020ba7b","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":167,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"198c8171-8ad7-42b6-92ef-286392ec7674","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":167,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"9c713a1c-e192-4f31-9761-c8a0b0de2a20","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":167,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"94f097dd-6540-46bb-9592-6e6721dc8df6","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":167,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"859a2682-73ba-45dc-9489-da170d8bf3be","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":167,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"d3b385e6-5a41-4895-8f30-250d41e2e61d","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":167,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"ab0dc9d9-9139-4323-9262-c0fa51deeb98","block_type":"box","text":"II-137","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4a24a7a7-fdb7-4ffc-877b-3cf590689891","block_type":"box","text":"NM1026U-5978647-167/232","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"511812d1-b91b-49c2-b3c0-fa695d733bbb","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":168,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"6ddc0999-a94f-47ab-9532-244b7feca950","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":168,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"76d7090d-a9af-4d90-a696-7f8109248ca9","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":168,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"f084ee98-6ff1-4588-963b-77ae009fdfef","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":168,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"22727388-a895-4352-8e78-260911aa3739","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":168,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"272ca3b4-6efb-4687-832d-a76a4461c20f","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":168,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"55571fc3-c961-4f67-9fc1-e84bede170c5","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":168,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"e84927da-0db2-4306-a0d6-4c75fff379bc","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":168,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"3dc0af5e-4c50-46f0-9977-5c1f95187a86","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":168,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"5bda9cc2-768c-4608-b964-d717ca40ad84","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":168,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"b927249a-56cd-4d02-8b3a-57d55106e84c","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":168,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"030c5db8-e6bb-4532-93ef-642f5f45cf90","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":168,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"7ec156d0-1817-4039-995d-4cc696f2516f","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":168,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"5aa78b91-3880-422f-a9b9-6bd24cb2440c","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":168,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"8e59fb68-69be-40c2-9676-535f2fd64dfc","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":168,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"c45ae6c5-79ca-46f4-87f2-a683e2b30e7f","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":168,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"38c6f777-741c-47d9-95ff-60401df94f40","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":168,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"4833ec1b-9ccd-48d0-81ca-2f182b7cb76a","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":168,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"b817a133-4aa4-4079-bd3b-845688a36dc6","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":168,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"3f3290d6-a6ab-4bc1-9811-bead89fea4e1","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":168,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"48b278ff-251a-4411-ba00-4e399f6738ea","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":168,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"d01bd68e-0f70-406d-9dc8-b48b9f2ebda8","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":168,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"2c278156-053d-4258-b617-e83a7fe6a5da","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":168,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"9467e10e-3f5d-4555-af9a-f11b47539bcc","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":168,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"1c22e53a-6e19-4a85-922c-82c8b925a2f3","block_type":"box","text":"less than their original cost.","page_number":168,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"054cb179-3c39-4411-80ae-265b70422ddb","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":168,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"0b92dd6c-513e-4623-b28a-39f4d65e090d","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":168,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"ff4a69e0-6020-40c4-a58a-4ef0d7aa395c","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":168,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"f3c323e6-47e4-4d26-9b89-12fcc86499ad","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":168,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"10fa1651-e251-4da1-90fe-5fe6390e726c","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":168,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"f00ebdd3-4eb0-450b-b4ff-84841f0b8029","block_type":"box","text":"lower amount of expenses is deducted.","page_number":168,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"709237f1-5cb9-480c-8667-a6934dd63898","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":168,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"8946caf3-5da4-403a-a557-69e127dd6ed2","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":168,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"2c77c46c-14bc-477f-9e66-0f5741943b87","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":168,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"09062515-4b8c-4f79-bd89-717debb58e9b","block_type":"box","text":"Money Magazine, U.S.","page_number":168,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"5b9660c8-c5e1-4d8d-baf8-1f67180728fa","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":168,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"7ea3f20a-1a8b-4f90-bd86-90b9d102de4b","block_type":"box","text":"or other industry publications. When","page_number":168,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"9dbaeaa5-a735-40f3-bdc7-1a1f97870bae","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":168,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"0aaef37a-bb2c-4956-aa78-e2a0232d3a08","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":168,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"65013bad-2628-4417-a07b-3611546020ab","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":168,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"539b17e1-f1e2-4183-ac4b-6938d1a5f245","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":168,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"5e29a6ca-76ad-4568-b269-0f2fed011f31","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":168,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"05531caa-aebd-452d-922c-01450f54a3fb","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":168,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"4f11172a-2bdd-4fe1-b01d-a1d26edefecb","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":168,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"74748ab0-c6da-43d5-a60c-9bd975fc409e","block_type":"box","text":"developed by Fund management.","page_number":168,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"3a4ba3b3-1a70-4310-9d3b-4f7361322421","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":168,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"ad5b716f-9163-45d3-8709-856cc8bdd928","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":168,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"ec120e84-4dda-49c6-8289-35e96124919a","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":168,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"4a36e5e5-2611-455b-bb94-ffccbad7ca7b","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":168,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"22987b62-30f3-4a87-94c4-dc46351bd102","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":168,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"03fad4b1-142a-4abe-a909-72c2d9a4fc2f","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":168,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"13f8aef0-fcca-4681-b49c-2089ab8ebcd9","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":168,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"23c79d2b-6d1c-4847-8d63-9407b45d3072","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":168,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"f73f7d57-7812-4445-b757-007f84aada5d","block_type":"box","text":"II-138","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1a52745c-d34a-4bdc-804b-8ab8abfa34c6","block_type":"box","text":"NM1026U-5978647-168/232","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b7e8569c-0659-4e88-a91b-5cb9cefe42be","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":169,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"e148cec3-dc87-436f-a199-12df20bc1990","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":169,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"b9c33d3c-cc76-4b28-87cc-57b8fbf765da","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":169,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"666a7be0-b0b8-4944-8648-1e29fc31b7b1","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":169,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"a8e5a3e4-334e-40b2-a977-1c231d3e8b05","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":169,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"35374dd7-7ae0-481f-8a8e-028ce6cda71c","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":169,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"a1a96efb-915f-46e9-b544-dae7b8e91a63","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":169,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"442c2ec2-3c2b-44f1-9f1d-fe53fbc54f40","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":169,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"5f7f9885-7797-41bc-a401-935f6aa92efd","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":169,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"5c5b6603-7d99-49cf-999b-bf1eb869064b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":169,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"d7c64b8d-bc79-4b94-bade-9fb296e6c03b","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":169,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"744bb823-d7a0-4949-82e0-98bdbeda0440","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":169,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"661ace51-f4fe-4459-91b7-7d124f8cedc9","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":169,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"0bc14860-45b7-48b4-8459-1568920d4b1a","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":169,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"98363c9d-5f18-4065-93d0-fc48e05ed0cf","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":169,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"ea9cb6db-92fe-40ed-a16b-dbaf395ce366","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":169,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"fac644cc-604d-42e8-8845-52bfea2602c1","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":169,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"85d6cdb6-0cb7-4fe0-880d-1b29dfa7662c","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":169,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"cf5d23c5-ca5e-4608-8a79-8c14b5aaad36","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":169,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"b055856d-0c4a-4d08-a56f-c419c3b41a50","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":169,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"25198bfc-16ac-450a-acbf-06741f2c9507","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":169,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"24368619-5cc1-4b60-97ba-2dd1d2aec06f","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":169,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"961acefb-7aae-4353-87b2-43d79dd671a9","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":169,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"2bd9d4d6-5a36-4d40-b917-c11cf4a456c2","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":169,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"2e24a644-0295-479a-8e10-10208917f791","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":169,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"6da81bf1-435c-4959-b7dd-7c2cac9fd660","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":169,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"c62613aa-0eae-4d47-b1b8-3d463d99398b","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":169,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"06a0abd5-a614-45c5-abb0-77cdc7a68f13","block_type":"box","text":"GENERAL INFORMATION","page_number":169,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"55e268e1-df8f-4756-b3c7-9758103042ff","block_type":"box","text":"Description of Shares","page_number":169,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"a1724010-448b-43b6-acee-7d2358c9287c","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":169,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"37e630b0-76b2-46d9-8147-d920999a33ab","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":169,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"940475f0-ae55-44b1-8371-941029a3f6e1","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":169,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"8b081098-6975-418f-8ff2-24b0caa2021a","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":169,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"5976961e-8257-4a9f-9a8a-c03b94d0f1e5","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":169,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"7c543136-80ec-4696-8dcd-2e17ce311802","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":169,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"44881853-0773-4f55-83e4-0487dfcb030e","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":169,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"2e6a6bd9-37d0-43c5-8d7e-fe804abbf5a1","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":169,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"34cb04de-425c-4c4b-bbdf-ca287c03ae66","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":169,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"afbdbbe7-fd52-4655-bf63-bbd61420bbd7","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":169,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"089b310d-0cad-46a5-9c5c-6bfaff82c1e1","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":169,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"4d1f7796-6843-46c4-a44a-49bd0d037913","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":169,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"3f4f1676-039b-4699-b366-e015698818b6","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":169,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"b9518098-7148-4d6c-bc2d-2cb092da93c9","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":169,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"ae146c04-c67d-4b1f-8076-36ddbc30cd16","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":169,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"9f727b69-0fcd-4ab9-bd29-8f33f763b6e4","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":169,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"716a5cf1-4df6-49b0-a621-637280fc4465","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":169,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"4d325091-6f37-4b61-a6c5-e0b2623bf69a","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":169,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"24d891a7-7d77-4891-8091-7b97580cc99a","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":169,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"0a691dfe-7dee-440d-bd35-e1ab8d012803","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":169,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"b12c74c0-f069-42dc-a3b9-e8607a434dd4","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":169,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"9652c31c-6998-493e-905d-920173db49e7","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":169,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"5096ca69-f150-4c6b-90a9-b265dc8b27e9","block_type":"box","text":"II-139","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0fbdb676-780e-4a0b-8119-a38a834be28e","block_type":"box","text":"NM1026U-5978647-169/232","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"477e2458-920f-45d3-9c9a-463c657a3a5f","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":170,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"cff7f8d5-1981-4749-a871-1ca386b9d4cb","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":170,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"da9aff4f-073f-42b5-a717-a34d34ee1e1b","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":170,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"852f3003-cdf1-4052-a128-f04903400a16","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":170,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"88caecc6-c262-46b4-826a-32596a603840","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":170,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"5a868d76-2970-4321-84fd-1d3586f60b22","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":170,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"bd1f26be-7f18-4384-8d22-3a35cb3589f6","block_type":"box","text":"Additional Information","page_number":170,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"85fc8629-50f0-4026-a796-ce13df0da09a","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":170,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"abd1b569-aeca-4cf0-bf70-64172802c0ed","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":170,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"532d664d-97dc-4a66-824e-bf7bb04a57ee","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":170,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"1a65e9c2-b8cf-4eb3-ac27-6df0b1e4cd2a","block_type":"box","text":"such name to any other company.","page_number":170,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"c2af4ced-e904-43a6-b9b5-648b183800eb","block_type":"box","text":"II-140","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6651c537-e4b7-40ef-a78b-3fb7cbbe4645","block_type":"box","text":"NM1026U-5978647-170/232","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"395c6395-eaa5-4a54-a247-6c3cd0cdb7c4","block_type":"box","text":"APPENDIX A","page_number":171,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"8bf56174-4bab-4cd7-adb9-a7d8ad8c88b8","block_type":"box","text":"Description of Bond Ratings","page_number":171,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"cd631590-41b5-4288-8eff-4024a14cdcc7","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":171,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"67ecf516-dda6-4f7b-9e71-55e5a8a7de3f","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":171,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"d57a3465-ea11-42c1-a9fc-ba13d157ffcb","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":171,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"1f90bc96-a15d-4b54-b4b2-cf73499c62d1","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":171,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"095800df-cb54-46f0-98a3-77fa4b3ba883","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":171,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"11e2ee38-6a2e-49fd-97f0-aa1c3bd2fced","block_type":"box","text":"NRSROs may rate specific investments (","page_number":171,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"97384025-86a3-44c9-9f79-cd3f8ee0f73b","block_type":"box","text":"e.g.","page_number":171,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"d49e127a-a2c9-4262-892e-defdfb8e5382","block_type":"box","text":", bonds), issuers (","page_number":171,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"f53ccc94-aae0-45a9-a05b-c43e280072ab","block_type":"box","text":"e.g.","page_number":171,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"c929721d-43e6-4d0b-b572-fc87f8583a3d","block_type":"box","text":", corporations, governments and financial","page_number":171,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"02b46785-6df5-42a6-8a8e-2cd4c092075d","block_type":"box","text":"institutions) and/or programs (","page_number":171,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"19f068eb-34f5-4601-9537-849cd3fe4eef","block_type":"box","text":"e.g.","page_number":171,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"eb25ba92-7339-44d6-8c1e-ed2714f6651c","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":171,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"8d02c5e4-84e3-4b03-9029-db4213b51a41","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":171,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"ddf6a4b7-045f-4114-a4fe-cc8878cf6cdc","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":171,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"df144947-c7f1-4a19-b52c-148c543a3999","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":171,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"f282b444-c425-45f8-b3d0-0f05f47fbdbc","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":171,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"9b9ac88c-6f10-4516-9276-6fd77d884a2c","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":171,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"02d42ee8-8c48-4aef-93a7-fcb66fd4cbaf","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":171,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"2d4861a7-0dad-4b65-9307-5c9d477c9cbf","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":171,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"2706c7a5-46f7-4748-b4ef-5759547d5a65","block_type":"box","text":"security (","page_number":171,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"2d31aa38-60d4-4718-9df1-0971b9151f76","block_type":"box","text":"e.g.","page_number":171,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"5d3dc502-e4b6-49f3-bbc8-c5ca82749629","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":171,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"bbf031db-5998-49ee-9add-ef2cc74d50c9","block_type":"box","text":"highest of the multiple ratings.","page_number":171,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"3093b682-0143-4e53-ae50-414ebe629387","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":171,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"7012d393-e8a8-49ed-b59b-33c259a07be0","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":171,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"33caa926-aff9-417c-9ca1-292a2bc645d9","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":171,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"514ac627-7a70-4b52-9252-1ea8924080e7","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":171,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"17639634-1276-4624-8205-ed3087a3ca2e","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":171,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"a05e130d-2e2d-4561-91c4-0547b47b1ce5","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":171,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"414d2d27-4118-4f0a-88af-da85c6b894cc","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":171,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"9f5aec36-13d3-4aa2-aed2-b1a8ad39decb","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":171,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"aaffb7e4-d2ab-4da1-8fe2-3e2683096281","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":171,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"632286e9-650c-4cca-8e60-5c683ffc78f9","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":171,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"a48c17fd-2282-4ad4-aa2b-5c02badb0215","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":171,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"49a2adf9-0155-40d6-b200-a7a07eaab12c","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":171,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"10dce98d-d8a9-4cc6-bd06-747e1fa90070","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":171,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"594c51e0-f8d9-43ac-8d58-9c0832e83f35","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":171,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"3f7b51d4-1203-46da-9dc2-7eb746c9967a","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":171,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"56cd8ea4-712e-40e3-a7f4-c6e93fcb2738","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":171,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"9c1f1b52-e89b-49c8-9ce6-8914ecc7c87d","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":171,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"25724796-e8cd-42fa-9e5a-0df99be93ddb","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":171,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"993358aa-bccd-4f48-95e5-2f95e53b2edc","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":171,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"1ae5ef0b-f25b-4563-9b2b-dfdc26740195","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":171,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"93e635e5-2be7-48a0-b27b-1b2f64767f8b","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":171,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"2c57f822-a42c-4219-b9ea-d2304a4b27f6","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":171,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"7ef73550-f8b5-4047-ac17-52921ef3778c","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":171,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"34965050-6b2e-43a5-9806-be8872c481f8","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":171,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"d031503e-d504-4928-ae95-aa1cad7f4556","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":171,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"0034465c-2673-49fc-98d9-e21dad00d5a6","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":171,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"f8aafc21-4242-4546-828b-b305b8f59f95","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":171,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"cbc9ea33-9123-4f78-abb5-23c44e74c12e","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":171,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"09000954-e239-4a1a-9715-875fa107457b","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":171,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"0d592f8c-bb0a-46cb-b794-e5d755d48dd3","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":171,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"a035f387-4593-4171-a440-1b8136048bdb","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":171,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"2accaf81-1b33-48b0-9067-26503984b2b7","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":171,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"81789a7c-e0f0-49b8-bd27-2a99dda99fa0","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":171,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"70979986-4726-4712-8c8e-c5350bb95c2d","block_type":"box","text":"upon standard sources of variation (","page_number":171,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"de71270f-1bb5-4805-8b8a-e3e1a799d5b8","block_type":"box","text":"e.g.","page_number":171,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"763757da-aa8e-41c3-8351-be0f7c9ca49c","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":171,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"e5c6401f-8859-462a-b503-447c6f2d0c76","block_type":"box","text":"A-1","page_number":171,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"70ce8aae-e96a-4e18-9a8e-a7f763be24cb","block_type":"box","text":"NM1026U-5978647-171/232","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"08f5460d-fcda-4807-a361-dcf5270e7a22","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":172,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"6af75cf4-001e-4e15-b9b4-0201a18ee2a5","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":172,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"7a554782-bd0a-4419-af0b-81855d6a738a","block_type":"box","text":"e.g.","page_number":172,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"bf206de4-b934-4429-b090-e92fbcb35935","block_type":"box","text":", equity indexed), absent","page_number":172,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"c64e8b76-6ceb-4c7e-84a5-33884ee3401a","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":172,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"f34055a6-6a55-46a5-b287-1eb392295059","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":172,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"d067a682-dec6-495d-828a-3823ecfb8076","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":172,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"969f35b8-0e2b-41f1-8221-9792082f999c","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":172,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"fd8ea31c-e913-460b-bc45-5607552031cc","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":172,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"e22549b0-dab4-4cb0-83d1-4ff6c54fc09d","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":172,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"35d0a019-bf12-412f-8d06-ea6dee80e351","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":172,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"4a37cf4f-7e04-4bfc-b757-e251dca3af14","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":172,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"769e72b5-a631-4b6b-880f-4a090926ef62","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":172,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"96a7ed82-f08e-4704-888a-d980792b1e78","block_type":"box","text":"i.e.","page_number":172,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"2012879b-13b9-4906-9ca7-52d1b4380969","block_type":"box","text":", ratings on nonfinancial","page_number":172,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"d71aa61a-e11d-45f4-b535-6c0291d09ef7","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":172,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"4d8826ae-f73c-45d9-b3d1-857e1c52b802","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":172,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"573f9f87-d735-4b2f-9c9d-401bd6f34bc1","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":172,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"3d23ef0c-02a8-40f1-b504-f3f81f9910f4","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":172,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"63f46818-2a0c-4a87-9d00-ccb15c126db5","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":172,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"64c9ca35-5b87-40fa-a345-ade7915dc42b","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":172,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"e52724d4-22b2-4b72-bc04-3c3a9b0259bd","block_type":"box","text":"of time.","page_number":172,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"a323bc0b-e188-467c-9fbe-17c6fda438d8","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":172,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"2b5e79a8-3b09-4977-a673-6945e54d06ff","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":172,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"a39855de-ddc6-4a18-9f49-c0a240a98922","block_type":"box","text":"risk.","page_number":172,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"e81a6c9b-d126-4417-a3f5-d6de121cf789","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":172,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"1d3e3fab-9b96-4c3b-ad59-9f518d059660","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":172,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"e3f00c21-5753-456c-9bdc-47e9d8075f4c","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":172,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"0bb8ed6d-c07d-4d08-b731-99a37b9c4055","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":172,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"137595c3-1a8a-4e43-81ff-77585d8c7731","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":172,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"7eea16b8-b1e3-4756-bb10-17468ffb49ce","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":172,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"f73797cf-ab0a-494c-bf87-9e6e442da8cf","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":172,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"5bab1d68-e854-4c9a-b172-bc9a6e4def6a","block_type":"box","text":"credit risk.","page_number":172,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"8a7f8a73-5450-4b01-a06a-930b4565e3db","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":172,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"59c07f14-20bb-401e-a62a-5c0b9589610b","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":172,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"50c77c94-a555-4c80-af03-382d736dc7f7","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":172,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"c931539e-df15-4222-be6d-bd0695e30316","block_type":"box","text":"of principal or interest.","page_number":172,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"cc27d839-48cf-4125-b925-e3b541715662","block_type":"box","text":"Note:","page_number":172,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"51d1cad5-2385-4ad6-b751-c90a7baade73","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":172,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"dcd20144-87b8-46bc-bc4d-1a4a5a25a07a","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":172,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"770d1676-defc-4c53-86d9-5069a2d5ac0d","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":172,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"85fa5802-63aa-48d7-9c2b-aa0ca92dcc5f","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":172,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"326f17eb-36d2-473f-a73f-b59dd0e16b39","block_type":"box","text":"companies, and securities firms.","page_number":172,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"b4ab7205-3ec0-41bb-8b97-0f76224148db","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":172,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"732d5fad-0d5a-490e-9aaa-349cdb6beb82","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":172,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"77d48516-ff83-41f8-8b6b-0198c751a7ae","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":172,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"64b02009-7858-4489-870f-d64473f4800f","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":172,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"0b58e7a9-ab26-4ea6-be48-c545c4d8ebbf","block_type":"box","text":"that security.","page_number":172,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"a0064295-d5d3-40d9-8953-8120ba8e0f7e","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":172,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"3e487fbb-2289-487a-9249-181a396f0a35","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"1021f40e-2fcb-4032-9d4c-df36df1db2e6","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"e9b49503-3785-4612-867b-a5329b035af5","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":172,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"a6671f62-149d-4dd9-8942-45aff527b448","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":172,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"6875cf01-5d7e-4d72-be9d-fba29fedc3ba","block_type":"box","text":"categories.","page_number":172,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"fb91b791-e4e8-482c-b2b3-fb2606b1db6c","block_type":"box","text":"A-2","page_number":172,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"72306303-625a-4f1a-8cde-eea7d30e1a3e","block_type":"box","text":"NM1026U-5978647-172/232","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f7d769dd-2c64-4c32-8bd8-a2f96dd1fc9e","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":173,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"b3bd8fb3-eb21-4776-9ff6-585e9e906983","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":173,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"8acdc3db-8f64-4c8c-adf9-a5dba81cf862","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":173,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"8dcec531-89ef-4ac0-8781-08dbe00265f8","block_type":"box","text":"an issuer’s self-liquidity.","page_number":173,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"be063c95-4c71-415d-97cf-0bd8f9dce3ef","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":173,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"c6382324-14fa-426f-8adb-13b19d3ab1f1","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":173,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"e50811b3-532a-42e9-a70d-f87132161973","block_type":"box","text":"MIG Ratings","page_number":173,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"00c3a915-714b-4dc6-866f-38221120d52f","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":173,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"4a1e809b-7f2e-444c-b173-de9abebe4fd6","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":173,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"b1197d9d-db2c-48a4-817c-8b5c08e3b23d","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":173,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"bfe23e31-7f63-42a6-84cb-2fd9b4e16835","block_type":"box","text":"MIG Scale","page_number":173,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"8abbd994-b427-48be-b542-62fb69bdfd12","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":173,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"ac3a7273-4229-411e-85af-db7bd977ccb6","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":173,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"b0d7fbc2-96bb-4608-8521-5bae38d83b69","block_type":"box","text":"refinancing.","page_number":173,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"2bed5e4b-86ae-4d00-bf78-4c999308217e","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":173,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"fe0f4889-baff-4657-8acb-c88dabfb8611","block_type":"box","text":"large as in the preceding group.","page_number":173,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"7e3e2fa9-f1fc-48d1-9884-65c65d4808e1","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":173,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"b95dd301-817c-46fc-8dd2-a05eba354ca9","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":173,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"23045f93-eddc-4552-b747-661036b31d0c","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":173,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"82f36185-698e-49e0-b523-e20f7d59f147","block_type":"box","text":"lack sufficient margins of protection.","page_number":173,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"6a8ab164-f717-4e82-b405-e210c220a0fd","block_type":"box","text":"VMIG Ratings","page_number":173,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"a28686d6-4dbb-4743-b524-4cbefcdfbbf2","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":173,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"068af71d-6434-407a-b6b8-49b26454bb6b","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":173,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"fb765591-8518-4fc9-908b-27b6ab35fa57","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":173,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"bcc407f5-2f64-46d1-8e1e-65aa0faa9393","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":173,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"6b80c107-9154-4c06-918c-2ac0294031d2","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":173,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"1be47724-b3c1-482e-b4fa-ee09418d11d7","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":173,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"adce0039-9854-4e69-9dc8-1d9e00afc28e","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":173,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"e95d9b93-2038-4313-b529-edb0c561c504","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":173,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"1a7a01c5-7e01-48ef-ad7c-b805b4e9a380","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":173,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"8438fe7c-a290-45e6-9eaa-84a9b714a24c","block_type":"box","text":"grade.","page_number":173,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"a654f817-3eae-4f91-9915-6a515edac0b2","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":173,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"2c9df6b3-60fe-48f4-88b4-cda840fa9953","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":173,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"a4b294e0-ed17-4e79-9846-b4f4b27c64f2","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":173,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"00f23cdb-1ea9-40bd-b11f-5cafa01c1232","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":173,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"e0cd9cb4-8a67-4fb4-92bc-5e433f55ed80","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":173,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"af570ff2-b34e-4099-abb0-6a5dda629019","block_type":"box","text":"liquidity of the corporate obligor.","page_number":173,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"03d6499d-17c7-47bc-b12d-918e7448ef4a","block_type":"box","text":"VMIG Scale","page_number":173,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"8e06a37c-b52a-4da5-8c80-29444761a1fd","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":173,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"52a9e6da-5c86-40eb-b2d6-a295aa6ee75f","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"855269f7-08a3-403c-a74b-f015dc07c6ad","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":173,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"4fb779fb-04aa-4895-bf76-7b463091c8bd","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"cbc480b9-baff-4403-9733-2be9bc85eb9d","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":173,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"baf71fef-6e2b-4939-b797-37a11b24cb34","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":173,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"1bcf1da6-2566-4a02-9d7d-c86ca3f416cb","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":173,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"ad8805b7-8b0e-43e0-9966-8d4d8437db2e","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":173,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"bd5ca0e7-aa38-4002-998f-b03952f26ab5","block_type":"box","text":"may lack the structural or legal protections.","page_number":173,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"febe77d1-32ae-46cf-a539-2900c4d1c391","block_type":"box","text":"A-3","page_number":173,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"38a1a206-23b8-48a2-b426-7c4c9310b318","block_type":"box","text":"NM1026U-5978647-173/232","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"38931331-c420-4709-9b8a-6e4b136f6590","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":174,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"2dc8e899-8aa7-4d06-b1a6-e68fe35b8f48","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":174,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"7f12d7e4-f3c5-4efa-8f4d-cdcd7b570b37","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":174,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"3af03b04-080b-4df3-83ae-588938964694","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":174,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"91ab0170-241d-40f1-9af9-2e64e06cb6a5","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":174,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"772653b2-cdc5-49b9-9687-1070f4c1e033","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":174,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"606bb725-2737-4e04-88ba-aa8295b012d6","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":174,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"0ed7fb56-8b65-45d4-a0d2-e0e033b185b8","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":174,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"fe7dbd91-245f-4d94-bb76-ce6eefb6acf9","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":174,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"e172d6be-cf7d-4410-9cf3-4df54b67f67c","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":174,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"3da655c2-eb59-42a5-a795-be6a34617ec8","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":174,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"dbb52931-a17f-4516-84b5-2519d440ad74","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":174,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"9b3aaa4e-e2bf-440c-a2a6-b6f772377cea","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":174,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"a5834c82-ff52-4df3-bec6-eb6ca18e4982","block_type":"box","text":"from these guidelines based on market practices.","page_number":174,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"7b7af331-7f1a-4bd8-90d7-46880db94caf","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":174,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"cede938f-e198-4da2-8f33-de3b71935dd8","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"0fdbeb1e-f713-44f2-892b-30fc2d326723","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":174,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"8600a525-855c-4425-b2eb-ac378935e844","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":174,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"be553f98-8650-4cb2-90d2-87763a2d15c6","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"b2f5164a-a472-49e7-8b3e-572643e25e29","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":174,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"c7f65b82-6910-4a9a-85d0-060462189283","block_type":"box","text":"•","page_number":174,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"8e9ac7f1-a2a3-4e93-afc6-223991644203","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":174,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"fce4b2ea-6346-4862-9aab-2f4c33e5884f","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":174,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"01cb54ef-2b67-4e8c-981e-ccb36914c358","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":174,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"721f164c-0ab5-4f76-ad42-67b39a2a1028","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":174,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"6a6a62dd-832f-40f6-a375-01f56ca4d149","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":174,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"5174de1d-e907-4103-94f7-3f5cc8ee7923","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":174,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"6edc0db8-b043-436b-9f15-e88aee35677f","block_type":"box","text":"obligations.)","page_number":174,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"7da32557-aafd-4ed0-8c6c-d282d2f05121","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":174,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"322af7ea-ae37-4e60-814b-fcbf2b34519b","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":174,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"7599af23-33dd-4978-8e5b-44ef3c4ae026","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":174,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"86af31c8-abeb-4db5-8d8c-2bb6951348f9","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":174,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"1bebf95a-72eb-4d5a-af79-3d6425bc6223","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":174,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"26bce7ac-416f-45dc-aa11-8c8bb5e60067","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":174,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"bfe1ca99-0f8f-49d9-b840-e6fc05e44f17","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":174,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"b2b0d9e3-d1e3-4ede-9e63-00c5b6513d8d","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":174,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"ca162b2a-c8d9-46f8-86b3-0a66f6ec6ff8","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":174,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"1cbd8e09-bdf8-47ca-99b9-df0aecd6e8ed","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":174,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"46d99ee7-c389-4ad7-bf44-cc610dac7306","block_type":"box","text":"financial commitments on the obligation.","page_number":174,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"9839dfbc-9e60-4750-8497-342d1068d48a","block_type":"box","text":"BB,","page_number":174,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"0e6ae30f-6e9a-4e93-8963-e600005b0ee9","block_type":"box","text":"B,","page_number":174,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"6a70c367-1f5a-4001-870a-195522f50b47","block_type":"box","text":"CCC,","page_number":174,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"094607cf-695c-4e03-8515-db5797fdf4b3","block_type":"box","text":"CC,","page_number":174,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"f30e1b55-fd04-496c-9592-6ad7a49d1dd3","block_type":"box","text":"and C","page_number":174,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"de3fa900-cc9b-49c5-9ee7-8a35703b9119","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":174,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"79dcc94e-cffb-47aa-98a0-609b7c18c697","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":174,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"c88f32d3-0532-405c-b124-2a58cd6b91d9","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":174,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"bba6be09-2377-4c5a-8c5f-2ebc53a7e744","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":174,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"59a91b61-8085-4f80-a27c-ead49ded619c","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":174,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"e85ecb11-6e42-4ad6-a37b-9a3838b98b76","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":174,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"544cb9d4-54ee-4dca-8d2b-ebaf65a1a701","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":174,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"0d36131e-e660-4b65-bbae-d5a31febce67","block_type":"box","text":"on the obligation.","page_number":174,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"02b959bb-5963-4cca-a341-a31a112506ed","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":174,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"b32d49ff-a800-45a7-9c35-fc8422ba5514","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":174,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"dc3bbfdb-4649-43d8-9d1a-2c5f21adf2a8","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":174,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"c22b3b07-6160-48b6-9237-11779aeb0679","block_type":"box","text":"financial commitments on the obligation.","page_number":174,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"7ab3b830-77d9-45af-8fc7-873dbc6aaeee","block_type":"box","text":"A-4","page_number":174,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"a311a844-83e6-4582-a191-910cc5392e12","block_type":"box","text":"NM1026U-5978647-174/232","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8b473ad5-f964-4b9d-8980-3c21a6e6abe0","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":175,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"384b4987-0614-45cc-9c89-8bd7e2002a96","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":175,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"e7c74cad-d295-42a2-a510-09e9b2203582","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":175,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"40d369c3-9999-46c1-87c0-8d256f7798af","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":175,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"d61bcfdc-988b-467f-b2f4-4737ce7d67d7","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":175,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"3574da10-8275-4938-a50f-874ca0bf4609","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":175,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"fffdfd96-3954-4879-806d-6555ac675b6b","block_type":"box","text":"anticipated time to default.","page_number":175,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"d987133f-ccb5-44f2-8055-4457f207ebbb","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":175,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"16374776-7257-4c9f-8ec9-5674f702a7f8","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":175,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"1d1649aa-a425-4d66-a4c5-f5a4816fdfbc","block_type":"box","text":"higher.","page_number":175,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"200aee05-a50e-497f-946f-9d2117766a53","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":175,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"e66bf6a0-c628-4ced-9b9b-0d3ccafc9c2d","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":175,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"00750855-e3b9-44d7-a9e3-b1f7401614ef","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":175,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"70ae359b-a39f-46eb-bb3d-3ce4ba9a21ec","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":175,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"35a057c9-1130-4f51-bb7e-c855d4edc897","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":175,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"bffa05e6-d8e2-4329-a11c-2e65245649e7","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":175,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"226cddd8-632d-41a9-9b06-5cbf4e9aa7d9","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":175,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"376319b6-6694-4405-a487-aa320c0c74e5","block_type":"box","text":"restructuring.","page_number":175,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"33af9e18-2f00-4a69-952a-e3d5890463ee","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":175,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"34eb41ea-dfb5-4d3f-829e-139335b7a884","block_type":"box","text":"standing within the rating categories.","page_number":175,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"3772d062-db48-48b5-840d-f016835e78f1","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":175,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"bc07c2be-563b-41f4-8414-f577756664aa","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":175,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"adc42232-ec4a-459c-b370-58f3791b8280","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":175,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"a00ab89a-9b69-4328-96fa-2f4cabf60f91","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":175,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"ec487a3e-49a7-4d19-a3b7-7df055c1bc94","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":175,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"38fd13ef-bb11-4134-be9a-30056c91ccd6","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":175,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"5ead4fc8-e440-4933-a292-f37eba78f2d8","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":175,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"2cfb77ea-093c-4f18-85a2-8231802d2628","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":175,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"5844017f-31fe-4b61-9d40-f5a3d12ef16f","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":175,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"1ff2221b-0223-4c14-ad66-9131675cbbb8","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":175,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"1aea98f0-db98-475d-b3f7-9ec3c0bc858e","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":175,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"8a3ffaa8-879c-4f32-a96c-bc13ecc417ba","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":175,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"ee76e3be-49a2-4d87-a620-f6e5044c6272","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":175,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"c710deb7-2b68-4411-ba67-6fb58b447e8e","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":175,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"e74cf969-ce3d-46f6-acb8-1dac466963f7","block_type":"box","text":"financial commitments.","page_number":175,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"871121df-80a7-41da-abd1-861c8387a67e","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":175,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"ae051133-1a9c-402e-9a80-b0d61b73befe","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":175,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"fed9edb7-7136-4d14-9677-22743fb3b0df","block_type":"box","text":"commitments on the obligation.","page_number":175,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"624ae322-92e6-4c91-86af-cb173b734c1b","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":175,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"6536851a-ab55-45c4-9dfc-0c5fdec32d5d","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":175,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"9a2b27a6-ecb7-4871-9949-b3942ba13d42","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":175,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"01a828b3-2db6-40f4-adc4-624762bff3a4","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":175,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"b6ae984e-afd3-4108-bb63-ddf5f78cdf7c","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":175,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"067b2df4-732d-42c6-a136-86dce460f7cb","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":175,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"66747790-feb9-42f2-ad11-85bcbaaf94a2","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":175,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"83977ead-3d0d-42e9-a032-d9ceba6fe96f","block_type":"box","text":"debt restructuring.","page_number":175,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"fbf92e55-70f4-42a5-950c-230f12496342","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":175,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"be2ae098-3230-44a0-a350-15d119a9fec2","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":175,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"61ef9bca-6935-4c54-b55c-f4a929c54f6d","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":175,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"a0ff99e8-d9bc-41dd-9f4f-2140790c8a9f","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":175,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"4981577b-ac45-4962-9765-d82838e97db8","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":175,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"3a2b8d9c-e569-4936-8bbd-097de1a1e3d1","block_type":"box","text":"A-5","page_number":175,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"bd113932-7e67-45f5-8e75-04c612ee7bb9","block_type":"box","text":"NM1026U-5978647-175/232","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"61b0848f-8ec2-49de-8449-e74ef8e788fc","block_type":"box","text":"•","page_number":176,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"b9c523d9-d2c7-4a0f-bd47-6ce923e4fb2e","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":176,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"681ddc10-ffe2-4197-92ef-16887c8c8f56","block_type":"box","text":"as a note; and","page_number":176,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"6e507069-0527-4e42-825d-167b64e562b8","block_type":"box","text":"•","page_number":176,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"1c1d802f-a9e5-44d3-b379-c3fe702d220b","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":176,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"1b088f2c-c897-4132-91a8-90ce76a4520a","block_type":"box","text":"treated as a note.","page_number":176,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"eadb1132-eefc-493e-9b3e-ca19acc03c43","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":176,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"8b8f636c-85af-4d72-abba-ecac59859128","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":176,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"eef509e9-2dfa-4ef9-969e-eefe319b247e","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":176,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"58b59cc5-29f4-47a7-b409-d6c9ae385473","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":176,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"9e531584-6e05-4352-a5f6-24bca12af4ea","block_type":"box","text":"economic changes over the term of the notes.","page_number":176,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"67aaa9fd-17a0-4166-8ea3-0cfaf69cb505","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":176,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"b61b6543-50f3-478f-8c29-6462072b1644","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":176,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"b18d9dc3-40b4-4f96-814c-5daa291e03f2","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":176,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"3be451fb-5658-41ee-8f50-f38938c154f2","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":176,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"aba7b6c7-942f-4c9f-9f02-1786b0c19780","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":176,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"421a9273-99fa-43a3-846e-951e09039cc0","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":176,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"5081e480-c839-4dd5-a4c1-a052814e118c","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":176,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"c793e702-9778-491b-8583-1427b2420ace","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":176,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"d3d6dfb6-b0c4-4668-b4b6-1de68238b322","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":176,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"09b6d1c2-28ed-408d-9243-2943853b2739","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":176,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"c09583b6-6d60-4f6b-8780-90d916c323ea","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":176,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"1294673c-b78e-42f0-b1a6-0199224b83dd","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":176,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"0c1b536f-668e-4070-b2f3-559f8d90e68f","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":176,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"5e9662fc-88af-42e9-9fc9-631a4861ee02","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":176,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"8a30400b-1a1e-47d4-a371-7448594c844b","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":176,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"81fc827f-5194-4b19-bf23-20de961ebaa7","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":176,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"fd442779-e638-45df-a1b8-e5caf2d4a945","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":176,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"b1bcedff-d34b-4d8c-b998-49d5edc5689f","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":176,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"f32324b2-1743-44d0-a5e9-1f7dc79947c9","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":176,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"8c92daae-a62a-44b7-bbfb-4bd871e3eec6","block_type":"box","text":"receivables or other financial assets.","page_number":176,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"e4bda842-7ffd-44a5-a0af-d08555d976bb","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":176,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"3c1a6454-3489-4534-8e2a-25830c2c3aaf","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":176,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"7bd84da1-feb6-469c-b68a-d5964b497169","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":176,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"aaaebb61-1af8-4e3f-b896-13f111318753","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":176,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"a8390a64-eff0-44e7-8858-082d3ae1489f","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":176,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"71fb3590-6c30-4769-8456-7443208777c6","block_type":"box","text":"occurred.","page_number":176,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"05f697c4-5bd5-48ea-8f7e-7f231078a0d2","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":176,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"814cf015-4847-48ea-a0e7-d657bb831fc3","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":176,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"45635f0d-7bfb-41e4-a81e-69afc2bf798b","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":176,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"9fbe05ff-8843-4cd2-930c-5225a26f2c67","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":176,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"1640a398-e021-43f7-b4c1-510ac1314a93","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":176,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"04d8bc50-28b6-4363-9ae8-afee8692b047","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":176,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"2d03b9fb-a2c6-476b-a96a-9251b1b8444b","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":176,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"584d822b-00a3-495f-9162-390a604c62f6","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":176,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"e742e815-822d-4a3a-8a7c-bc5447c5dd3f","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":176,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"cd00ac4b-5abd-49c3-8c56-c63db4858907","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":176,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"be8c034c-7ad7-4628-9476-d7c80e62f5dc","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":176,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"af0fe168-8ae9-4d8c-9666-210d27b14f58","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":176,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"c5dd5c3a-36fd-4b23-8612-a2867c814fa6","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":176,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"7c363aa9-c43c-4de8-9ebe-cc204958d2f2","block_type":"box","text":"i.e.","page_number":176,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"4f93f3b3-a9bc-4843-ba1b-deb8bb460706","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":176,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"da00108a-0799-41d8-8b7f-5470a10789a8","block_type":"box","text":"the obligation’s documentation).","page_number":176,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"108c732d-fbec-4ecd-946d-1bbca717ab3a","block_type":"box","text":"A-6","page_number":176,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"acb56f55-3dc4-444e-aad3-f27ba146e441","block_type":"box","text":"NM1026U-5978647-176/232","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e0e04a32-1794-4683-a3e4-cf9eaa731174","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":177,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"de54d40b-68cb-4394-bd5a-79a14550b5d1","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":177,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"d566ef31-67fe-4798-be47-eae9656c3e77","block_type":"box","text":"agents in the form of a rating letter.","page_number":177,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"c341f981-1913-4948-9997-578e55e5ac3b","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":177,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"cae3aa54-3138-44e1-a54f-b795519eb166","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":177,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"dacc8ed9-f80a-43a6-bb4d-e00c0c5e28a3","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":177,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"ba3b06e9-9217-46e6-a50a-304b1ec6d806","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":177,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"7405efce-86ff-4b83-be53-1d09b08ec4f8","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":177,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"5d2fcfce-a556-4edd-aab4-6d2587f00700","block_type":"box","text":"e.g.","page_number":177,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"ab395176-17da-49c5-b3db-b9b6bc2cfe61","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":177,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"c9cc0e58-7b96-4769-9fa4-af24006d3135","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":177,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"0d9a52ef-2b1d-45f4-82bf-43a3e837bea9","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":177,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"4fee89e3-fbbc-4876-ae54-942412e2dfaa","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":177,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"03dde193-589c-48de-9608-14af9919079c","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":177,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"ee4f83b8-4a7c-4d01-a374-a12f14d3c03f","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":177,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"b706d3aa-955c-4eb2-8911-81157ad38a18","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":177,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"162b9795-fc73-49fe-9ed7-675d072b5e46","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":177,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"90aaee8a-5d70-48b0-b33c-f71e45c99c9a","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":177,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"427d52d0-98ff-417b-a54d-e59f31e9f6bc","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":177,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"b65cd1a1-1a8a-40db-8daf-f081d4b21876","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":177,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"3a9ddcf0-8bbd-4c80-9fb0-293f925b3272","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":177,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"052e2f5b-aaa9-4f09-bfd7-622a4feae757","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":177,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"d17ac585-c8d6-489a-90f8-483a522b2adb","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":177,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"02a36266-6a89-440e-a229-3de24e805013","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":177,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"68a81089-f8b2-43ce-9859-bf74cd3f4250","block_type":"box","text":"Ratings.","page_number":177,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"eb752f19-6b6a-41f7-b453-365f74a8e269","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":177,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"b44c5eb3-2c38-4e67-b1c3-26e15b287fcf","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":177,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"6acce0fa-91b9-43ed-b069-7965388d804d","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":177,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"6509893e-4547-42fe-bc2b-970440c3aa53","block_type":"box","text":"obligation ratings.","page_number":177,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"f02a1029-e27a-439e-958a-612dbc5db742","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":177,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"6a43ff8c-bb24-4103-a7f1-95f91645107e","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":177,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"691397e3-e0fe-4dc3-b36d-5c6354a3eab9","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":177,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"a5ee0ecf-8b6a-4260-9a51-961b498d53d6","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":177,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"53a268cd-fa79-44a8-b075-69e63fd20c2c","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":177,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"853eb147-562d-4ee8-be8d-51070b28d34c","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":177,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"fac02852-4ffd-4bcb-88c6-395c3468eb2d","block_type":"box","text":"to foreseeable events.","page_number":177,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"ad9c2dc6-ded6-4ec0-a484-4683023fed7c","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":177,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"7d439d58-77a8-4474-8875-85b384829e88","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":177,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"ba96c697-28df-4ebd-8d46-db55c1b42061","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":177,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"434c1f65-6b4f-4438-857b-af65dd133ebb","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":177,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"68cf6d15-5b54-4307-9691-922e0c6eba24","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":177,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"135efa3d-eca3-4f24-ba5a-46f9cdb28e2b","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":177,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"4c343cce-287c-4535-9dce-5ed4185196bd","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":177,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"c17289d6-d987-4d14-8b8f-48654dd3633a","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":177,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"923ff302-cacb-4be4-8074-d63731127e62","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":177,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"cb519dbd-e7d9-433b-bec2-6d31f04dff9c","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":177,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"11962568-a1d1-4aaa-9670-917ab788ba83","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":177,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"73d96cf7-ac33-4bb7-86c7-7b6c802921b3","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":177,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"fa2c9659-a729-426e-b500-02946c85e443","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":177,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"1e37f89b-cd3b-4bd7-819d-88969d008668","block_type":"box","text":"possibility.","page_number":177,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"159d7cee-9350-44fe-907b-976b78aefbea","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":177,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"fe543617-dff2-45ea-a018-982549f19e96","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":177,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"e344f9ff-78e5-49ed-891e-378b7f63f50e","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":177,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"cf4939ab-81af-4d49-9f16-8f313e0a38ca","block_type":"box","text":"A-7","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"343e91c2-c482-40ad-8361-870dabf761d3","block_type":"box","text":"NM1026U-5978647-177/232","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0816cf3e-a051-4eec-a49b-cbcc3123d9f8","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":178,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"39f83960-2e2d-461b-801b-17d90651f029","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":178,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"c00d697b-fdb8-485f-82cd-f69753ce989d","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":178,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"5a6939d1-cf93-440d-9bcc-f9d5999a35b8","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":178,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"0b9d8b40-35ef-4444-b2d5-75cfe353ccbc","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":178,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"ad1d911b-b262-48d3-89ee-3c925edcd71c","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":178,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"44ab20f7-d563-4d88-8cfe-969d88f91a13","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":178,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"cb88046d-70fb-4fe2-ae69-343accd71693","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":178,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"f77ba6af-559a-4fbb-b1fb-8fcfb209a287","block_type":"box","text":"relative status within major rating categories.","page_number":178,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"ea0e6d51-c920-4a1a-a8de-839e38b792a0","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":178,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"1185850c-b1d7-4906-8d08-0103e7d73ead","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":178,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"13b2d859-debf-4f0a-8f9f-05e349d7e699","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":178,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"2c83e697-ea39-49cd-abc5-c3d9d31dc5d3","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":178,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"3b6a6def-e79e-4ac6-abeb-91d5640084de","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":178,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"08634671-e23f-4927-9a71-39b3422817e0","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":178,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"1f48fb97-28a7-4947-a9d4-c50b6953285d","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":178,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"8b478344-a528-49b4-9331-8390979bbd70","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":178,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"7514650c-305a-45b0-8452-efa8c0d11292","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":178,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"5a5215c4-51ca-45a4-81e4-daa16bde4276","block_type":"box","text":"finance markets.","page_number":178,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"53b1bbca-11f5-47b2-9660-aca5faebc960","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":178,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"14a89b46-6095-4873-a13e-fb04f20ea8a9","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":178,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"37a74673-3f36-424c-86a1-f45a602cc0f1","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":178,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"e50e855b-8b58-4f0c-9693-fddecb514700","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":178,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"8d89a354-7aba-4805-a747-57fd1e6bc3cd","block_type":"box","text":"commitments.","page_number":178,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"30f2a075-91c7-4827-8591-27f979e68088","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":178,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"e277060d-c6d8-459b-a65d-c213a3397cee","block_type":"box","text":"adequate.","page_number":178,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"431edc38-f260-437c-8fbf-774a207c579c","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":178,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"d5735a8c-f813-4894-be11-d706e5bcc9fe","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":178,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"fd9fb6d9-fa86-45b1-92a2-31c459125491","block_type":"box","text":"economic conditions.","page_number":178,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"702fe6fc-5abb-4c89-9a7a-28d20898290e","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":178,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"063e50de-76ac-408c-ab2e-97fbefcb4437","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":178,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"b90097a5-f6bc-450d-b956-bf9a90542fa6","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":178,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"36e8e905-a24c-4380-b2eb-6c8f8c3683bb","block_type":"box","text":"ratings only.","page_number":178,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"001b1919-6292-436f-a71c-1b61d8b0fc3e","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a shor t-term","page_number":178,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"e0213f6e-57ee-4f17-bc9e-5afcb7747a05","block_type":"box","text":"obligation.","page_number":178,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"bebb1fcf-43ac-4b59-b320-171dec0ab4f2","block_type":"box","text":"A-8","page_number":178,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"28b13e37-d07a-4d7c-bdfb-c8bbe4dc4a0f","block_type":"box","text":"NM1026U-5978647-178/232","page_number":178,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"af81f60a-1c6a-4e04-845a-10d04aff422d","block_type":"box","text":"APPENDIX B","page_number":179,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"5deece80-4487-4878-909f-6a5485a02956","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":183,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"82339982-781c-4a4d-b4e1-638b5cf899dc","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":183,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"51169838-ba07-4d42-b086-961c369db01d","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":183,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"f04d0f98-a2fd-470e-8c65-4fa866e68e04","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":183,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"242cc326-0fd3-4248-af06-082afe8e6375","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":183,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"d0c817ad-57bf-4884-b2cc-af5610a7e3e2","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":183,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"120af9e0-0190-476d-b975-08f371e1f9a1","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":183,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"15a5ee64-19b1-48ed-b6d8-839a48e6f8e8","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":183,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"82abe7d9-99c1-4f26-8a7e-fb3826b833ca","block_type":"box","text":"1","page_number":183,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"3144a0b6-d6fa-4cf4-af71-c3b2f956b071","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":183,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"8bb79c2c-df6c-4a59-ba81-dd653db9981c","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":183,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"0d032ea8-a615-494f-bad2-c548520d0ece","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":183,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"834cdba3-0055-43eb-a65b-915b267280ed","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":183,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"b8c5e1c2-d726-43de-8118-2f7fe563a320","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":183,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"b0510f31-2cd4-4f12-a56f-ef4ef27e5da0","block_type":"box","text":"2","page_number":183,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"7911ba87-cf88-42fc-b921-f14ddc998af3","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":183,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"c66fe8b7-e5e8-42cc-bdb1-738c2a699dea","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":183,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"3429ee7c-861a-415b-9742-c44844ffc8eb","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":183,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"1a7f50e5-258a-425b-8a29-27bf39e0f185","block_type":"box","text":"policies.","page_number":183,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"aa2da40c-a648-4f09-bac3-230affbf5b96","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":183,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a22457c9-1aea-4f01-85b9-1682414c74cb","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":183,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"97cfd2f6-82c2-43e8-9ca1-3bb1b7636080","block_type":"box","text":"NM1026U-5978647-183/232","page_number":183,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4e2ab52a-84d2-4489-9eb2-9e4dc5f78b79","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":184,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"e180fd20-fefa-46b0-a94f-44777e414373","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":184,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"0ecffceb-d837-42c4-b144-e78980329760","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":184,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"ef938d37-86cd-45b5-ae7d-b61b5c5cbd1d","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":184,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"f5fe9c37-6a3a-4c31-94b1-7eb157d5c33b","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":184,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"d5a30d93-1fc3-49c7-a310-5966f3bf7032","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":184,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"0bcb6252-bc86-4206-93b0-ed88f4e4fa9a","block_type":"box","text":"this work with research, data and analytics.","page_number":184,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"651741ff-6704-4598-abe8-7b655f60d310","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":184,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"7324ada8-6dce-4cbe-aa36-a8cf9e46755d","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":184,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"81895682-6010-4291-8f94-4b6172aa7fd9","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":184,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"371d5b12-020d-4c77-a556-12e272688c6d","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":184,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"c6357abf-6d33-45d2-996c-876b6d4149ff","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":184,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"1e12b8d5-d74d-4a04-b684-82e369b71729","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":184,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"9e6b5a2a-6cc4-49d0-a32e-f4f607492c66","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":184,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"93ae0e12-89c5-447d-ade7-176baf98168c","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":184,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"07b4cfb2-4970-4acb-bd6d-ca00a082c174","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":184,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"0b299376-d832-4a91-91ab-e9e7a4c9e4ec","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":184,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"b1327576-dc07-4450-92d4-a28f508a5812","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":184,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"77efffc0-9aef-4d7d-961b-421d4e465772","block_type":"box","text":"shareholder meetings.","page_number":184,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"abac8d62-1fff-42cd-816f-d6de20a687c3","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":184,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"93b8d54f-709b-429a-bdab-47217c3c8f8e","block_type":"box","text":"investing.","page_number":184,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"1573feec-706f-4ef3-ab28-12a1d72c525d","block_type":"box","text":"3","page_number":184,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"46bff41b-a905-468e-b200-4b2c916e7db4","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":184,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"e364ac6f-de31-45cb-87ea-abf99e661b09","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":184,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"757b904e-342f-489d-8749-f15ea1b3e222","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":184,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"33a8447e-4e08-4e60-9d3f-5cbd6dd5c474","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":184,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"d2c9410a-7be2-4850-a2dc-74d2942deb18","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":184,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"9ecf8a7a-4a5e-4b3c-b144-7998e4020e03","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":184,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"964909c7-7a49-49aa-a8ea-ab61c20bf36f","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":184,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"81abe9a7-0216-429d-9d66-d2506aecd04f","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":184,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"0e4b7f1b-c463-4cd3-8fc0-817096d6eb3f","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":184,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"1f119242-780e-4959-8460-3b7f8dcd2124","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":184,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"0e233085-eae8-41fa-bed5-256637acec99","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":184,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"ff496c26-897b-49bf-a8f5-270546e6da33","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":184,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"5acb0339-7ad4-4333-a065-5226ba27edb3","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":184,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"394ab4b1-8c21-4bda-a10a-6267c4603d8d","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":184,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"0b1d7861-19a9-4faf-9038-733a2567cd54","block_type":"box","text":"management teams and board directors","page_number":184,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"b188bb50-f26e-4e95-b436-2a03ba15ee64","block_type":"box","text":"4","page_number":184,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"fbea204d-80a0-4bb1-8f32-1b587c792647","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":184,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"43fa9384-3b7b-48e3-a3d9-be92fd91ae2e","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":184,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"0e5cca09-9be8-4836-bbd8-8ea962da33bd","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":184,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"8d108354-87ed-46f6-ad3d-13ee539801db","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":184,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"459212d2-9a2b-4186-a331-f0862d455008","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":184,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"806d66ba-b9b5-4607-a50c-8b89b0446bcf","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":184,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"58ec26f5-a687-4f68-b3ba-4b9429ce24c2","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":184,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"33a579a9-00cb-4f17-9273-226cab6d0488","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":184,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"00e46104-4d06-403e-899c-82eaf76dc617","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":184,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"f6652126-6fa1-42f8-a3e0-a9df08b5f8c4","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":184,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"cc812386-e3c1-4ed5-884b-ffc097b50c86","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":184,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"5c9d9198-9ef5-4244-a619-4f2beec66a1a","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":184,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"6ec76a5b-1beb-44ce-8091-bbc30e92cc8f","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":184,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"c722a4b5-a057-48b9-b540-09e0b0d90d99","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":184,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"9f046ef2-bd70-4a7b-bea6-8d2431f77c2d","block_type":"box","text":"3","page_number":184,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"dc2952ca-28f5-49ff-93a0-4ccc55adaf48","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":184,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"13b54164-895d-46c5-880d-eea16896758b","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":184,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"24197c64-3170-4f22-8fda-99fabe9e3677","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":184,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"769b7545-2277-4518-bf2b-e6f8a38968b0","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":184,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"3812adf8-ec85-446b-9c8c-1b8a99497b38","block_type":"box","text":"4","page_number":184,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"e2a45903-0986-4361-8dcd-5701587df616","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":184,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"f3ccb54a-8957-433e-97bd-8fcad0b9f41a","block_type":"box","text":"boards and their members, where relevant.","page_number":184,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"6be32916-e988-415b-8d7b-1f4658333d70","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":184,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ef74fa9f-40ea-4fcf-ab0a-939cc18e75c6","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":184,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"97a45c5b-2f18-4800-ad2a-34caf234ffb5","block_type":"box","text":"NM1026U-5978647-184/232","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"519321c1-d78c-4664-8e4b-8abe73c94882","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":185,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"3b52c23c-f207-4585-aa53-67e0426addcf","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":185,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"a4f68c25-507e-4abe-a728-e1e1338eca6e","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":185,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"ec97da5e-fd92-46e1-8bf3-b97f6db3d4fe","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":185,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"c2969f33-d2a3-4ee9-9c99-fb780a5e9412","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":185,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"bc17a3d3-7b2c-431b-a392-19fe023b86f9","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":185,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"91fa380f-c9f9-40db-bf80-0cb8c0e8cca9","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":185,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"a84a1df1-978f-4fd0-9706-e511e833930e","block_type":"box","text":"5","page_number":185,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"7e7c2b2f-f613-4a1f-b0bf-385270b9436a","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":185,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"41e35741-a3e0-47a2-8cc0-3b18a8b13234","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":185,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"0bfb4001-f0b6-4264-aa29-ac7a371a5d8a","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":185,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"58e789a8-961f-4a35-b950-0916076570b3","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":185,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"b1189d37-74df-4118-a5a6-7ef34478da49","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":185,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"861c6a23-9693-48d4-a6e2-691f2b1ff994","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":185,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"bd433412-9aa8-4b4d-a660-006a23d83445","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":185,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"05175d17-6c28-4b00-a1fe-95922d285089","block_type":"box","text":"5","page_number":185,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"d4617a5d-75cb-47df-a84c-e9e39f7e60c2","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":185,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"eb7faf19-ad08-435c-ac5d-680974b81561","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":185,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"9bfbfe06-8110-4ceb-8071-3860ef67c86e","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":185,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"c3ca43c2-29b3-49e7-93cb-cb7b5c580ab6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":185,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"696f7501-292f-409a-b809-9b7d722d8872","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":185,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"47bddcc7-67ce-4f52-9360-bbead6911cb8","block_type":"box","text":"NM1026U-5978647-185/232","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9c3f3875-dbf9-4703-80df-39c0a28ac928","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":186,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"6e6b711b-3481-4ec7-b2eb-11e1e7f33b81","block_type":"box","text":"Roles and responsibilities","page_number":186,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"ed3b5be3-7578-4ca7-9dfb-aa1b01005b67","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":186,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"47651f52-efcb-4cd5-8a22-70918def28aa","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":186,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"c36203a1-e97c-42ed-bebd-bd0287a52a25","block_type":"box","text":"6","page_number":186,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"07b7b530-b053-4dd6-b476-8691f45a2df3","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":186,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"22336473-0f1d-4c46-afaf-332f8e3457ca","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":186,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"fee2e231-66cf-4e4e-af74-c22b38423bc2","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":186,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"c19f3f46-aa60-46d4-876a-17b9fec45f5c","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":186,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"81186315-3b3d-4623-8e68-1320fad02c4c","block_type":"box","text":"per formance over time.","page_number":186,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"9450a93a-6d2f-417c-b1a0-4820e63d6c46","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":186,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"6c2038f9-075d-45a9-9a02-1b18b4ebe963","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":186,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"184779a9-5c45-4473-8401-5248b364712a","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":186,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"a0e0e2c9-55b6-422f-a632-ad1f49457273","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":186,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"24d5ec32-59a2-40e6-aa89-f4960312fb5f","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":186,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"e2582f5e-437b-4de3-9cce-6bd1b5f68d20","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":186,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"2dd13bf7-84ad-465e-95e0-9b8085b70585","block_type":"box","text":"Composition and effectiveness","page_number":186,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"0806754f-b286-4f44-8962-8fbd04dd199e","block_type":"box","text":"Appointment process","page_number":186,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"81ba6f0c-d169-46ba-b119-d75d10fa011d","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":186,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"eb788d24-79b0-4fe0-b88f-4d3e0670b077","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":186,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"871e4b8e-0d7b-4446-9176-f9869f0c8cd7","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":186,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"0adf8326-c1aa-4fbd-a84d-2c9c1fa9d73f","block_type":"box","text":"e.g.","page_number":186,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"52056744-e16b-40ac-b4e0-2b13009a40d2","block_type":"box","text":", sector, maturity, geographic","page_number":186,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"2c2a2048-f7bd-4116-a8e1-ae75518877af","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":186,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"91741a87-1d97-422d-9be4-d17a0650b3b4","block_type":"box","text":"e.g.","page_number":186,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"6a45a5c6-7253-4336-a0aa-51a295dd1deb","block_type":"box","text":", financial exper tise, industry track record). To","page_number":186,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"730bd1d1-043c-4dd7-99e4-dfefce4de42a","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":186,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"06cff71f-bf44-4c37-8bca-6c25b46c1255","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":186,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"9ef62b65-9896-4ef9-a436-f7fa5d0a81ea","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":186,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"ea9b0383-79e7-47d9-9fa8-5a6c9e04d7e4","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":186,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"b4e828f9-e493-4e08-a852-0bbe77b5d474","block_type":"box","text":"and local market requirements.","page_number":186,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"30587094-3b66-4f46-9bc9-c5b0d5028ffd","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":186,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"3e7cd9b2-19da-4f44-b05a-e91ed41e5fe9","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":186,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"bb768168-ea17-461f-8b83-9b0aa9c9339b","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":186,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"a081228d-94fa-4ed4-9fca-2f95b6c03040","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":186,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"2b733ec6-472c-4664-9636-d68e2c1f346b","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":186,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"d5787ec8-c5d7-4cbe-9056-89f5bb87ddea","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":186,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"22b497f2-41bf-4af8-ab27-8fcfc191a79c","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":186,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"b97edc27-b1ac-48d1-97e3-4b75b37e6b9f","block_type":"box","text":"Independence","page_number":186,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"9cf3d79d-0768-4cfd-84af-8d91cb015a3f","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":186,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"f5dbbd07-ca65-4a0b-a2ed-d32fd7d6bc76","block_type":"box","text":"e.g.","page_number":186,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"b5fec6ce-26d6-4283-9f39-34820258a75d","block_type":"box","text":", government or","page_number":186,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"4af5b9e1-92d2-46ef-893e-b91d68f95f89","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":186,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"ab1e02ab-237d-417e-a5fc-0020100814fc","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":186,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"0d205012-7f6c-4dc4-b269-56199fd64266","block_type":"box","text":"conflicts of interest or undue influence.","page_number":186,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"a6664ab2-b880-460d-9bce-9ac4ae716287","block_type":"box","text":"7","page_number":186,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"3df5e509-0162-49b8-8741-9e48d291d5a5","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":186,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"c684d3e2-843d-4496-bd5d-d34b246cf88f","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":186,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"0d3e9016-7701-486e-899f-40705f228220","block_type":"box","text":"independence should meet those local requirements.","page_number":186,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"19ef2b6b-80bc-44a6-8fac-3da5f532f084","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":186,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"c686f360-d2b8-4fd8-99c5-9e3108654565","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":186,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"d6f4fcc9-d9ae-4f0a-abee-25de41f43880","block_type":"box","text":"composition if this is a perennial issue.","page_number":186,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"4f51fe05-3dbe-4a89-9ff7-7cc42b978cd6","block_type":"box","text":"6","page_number":186,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"aaa4ff13-ef4e-4483-a4c1-51705d7c7ba7","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":186,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"ebb3e06e-cff2-46b1-af8b-a4244a601f25","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":186,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"5a4b0f3e-4e99-475e-a4bc-4f0671e24cf1","block_type":"box","text":"7","page_number":186,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"8bf699f6-b675-474e-ac6c-83d8c92000aa","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":186,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"c24e6cc1-67c1-4ea1-a558-a03fbd7df243","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":186,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"143473d2-11e4-48ec-ba67-d5db49af0a88","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":186,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"601162f3-bd17-40a8-9680-15c155b0b6d7","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":186,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"f6c8aa96-2abe-4c50-9a06-0a3df8112db6","block_type":"box","text":"of the company and shareholders.","page_number":186,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"47a456ec-c9d9-4907-b96d-6a42abe893e5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e30390dc-a764-4123-ac11-de6ba81df064","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"fd9fa99c-fe80-4706-b193-996bbcb15c5f","block_type":"box","text":"NM1026U-5978647-186/232","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"00643068-7f22-4758-b48c-879ad845e1ba","block_type":"box","text":"Independent board leadership","page_number":187,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"6ad4d3e4-e806-43a0-9842-e3114efacfe1","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":187,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"0af4d018-8146-4af5-ac92-1e8f678b8b42","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":187,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"19d30c3a-ece5-48df-b7d8-ed8a400a3172","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":187,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"441ac2ea-4882-4b8b-8510-6c5fe8c48c8b","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":187,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"d5c86499-d2eb-44c9-b0cb-b91aea645f41","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":187,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"5bcd0da7-b861-4bc2-8bda-881ad2d16a3b","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":187,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"f3aba598-02e0-4fab-b096-38b1a5f8ca7f","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":187,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"0d6a0d54-8153-44da-84cd-83db96444585","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":187,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"062ae022-d10b-4339-bd3b-f38f1520b905","block_type":"box","text":"how it serves the interests of shareholders.","page_number":187,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"0a61465c-e8fe-431c-bd70-ecf3ca7f1105","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":187,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"9d39cf73-5ab1-4d9f-a9ae-50a90536988d","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":187,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"dbc153fc-a399-461b-9c19-484681de1f65","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":187,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"b322e10e-dd6b-4627-a970-361958bf4797","block_type":"box","text":"Tenure and succession","page_number":187,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"ae4bc442-fa83-4da0-a7a3-2abf3164ecb0","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":187,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"72ad572e-023f-48be-a953-f3eda089b28d","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":187,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"2e7f0cf6-fbb1-4249-9d6a-8fd826db4f30","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":187,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"faca6a85-46ba-4ba9-890b-027ed3abf0ca","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":187,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"b2a48935-7691-47c7-8a77-3ac9ef9b29c3","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":187,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"30802581-c0b1-47a7-b66c-edb88842c9d4","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":187,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"c504fc5b-ab86-4ce7-be99-e49e134f824a","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":187,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"a388a21d-8e06-4d93-8eb0-f4eac5124b07","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":187,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"ada554e5-0d5a-459e-a130-cb91dc5ae3d2","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":187,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"e5996d6f-e5b7-45ea-8803-e244644ffac6","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":187,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"a8445c3e-051f-4482-98fe-ac75a1651504","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":187,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"9f8fbd11-b8de-4544-a756-a40b33ba03b4","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":187,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"fe53149c-8fc6-49b4-9b4b-8fe6f7472bda","block_type":"box","text":"for their continued service is not evident.","page_number":187,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"32e83088-a5fb-41e9-b12c-298db868e71d","block_type":"box","text":"Capacity","page_number":187,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"3b060da3-2fee-4061-b642-e7737f6197f8","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":187,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"883329ee-bbe9-4932-aa79-5686c6d1cc80","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":187,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"2add0ca0-605f-4b06-b8f8-378a71e9a52e","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":187,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"4f7757dd-d7e1-489a-a78c-6c0b1073d07e","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":187,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"6335b358-8a9d-44af-9f36-f06f9792a7e9","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":187,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"4c65da2b-87fb-432a-a305-66ab9d78d2bf","block_type":"box","text":"determinations across markets.","page_number":187,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"4d035d72-99f6-4400-be8b-de5233f2c0a3","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":187,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"61c96342-89e4-470d-8018-fde9ade994b2","block_type":"box","text":"their duties to the board and company.","page_number":187,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"d869e822-36e5-4c94-a19a-272e10d1fda9","block_type":"box","text":"Director elections","page_number":187,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"f2ac80e6-f17a-45b4-9cec-70768df23647","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":187,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"f17fe2a8-7ab5-4517-8098-ff9dd540e9f3","block_type":"box","text":"structure","page_number":187,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"6383dea6-e40d-48c8-9770-1bbcadf63c56","block_type":"box","text":"8","page_number":187,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"fca6a326-0fb0-44a7-8115-b3eb13266f10","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":187,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"98ed57a7-eaeb-4e1f-a7d4-27ac35313db7","block_type":"box","text":"basis of its business model (","page_number":187,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"8ee61766-f69e-4d07-874e-031155334550","block_type":"box","text":"e.g.","page_number":187,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"e435b43b-9eaa-4bbe-bdb9-9c309f8e3fc8","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":187,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"3565a2d6-101e-434a-8dbc-e30739f4f9c0","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":187,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"4e16d209-9563-4459-8260-c06e23bc0fba","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":187,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"d8665080-f0ad-4124-addc-eac2d8683916","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":187,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"c9af58c4-cc88-4603-95a0-1952d210cbbc","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":187,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"5c788550-81f9-4706-9039-d0a7024fa349","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":187,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"a6adfbcf-768d-4ef6-965f-bcda75176e07","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":187,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"c85f17f0-e893-41ed-a28d-08e00b2c3b3f","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":187,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"1676cf5c-c223-4645-beca-c6eaeac39842","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":187,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"bc37d9c2-9568-47ab-b3b9-0de8925bd3d4","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":187,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"a765d135-e61f-4209-b316-1232e98c8239","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":187,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"fdf9a238-c898-4551-a206-11f7da6e1cdb","block_type":"box","text":"8","page_number":187,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"302e9efd-7130-4d49-a10c-e8044ec8366f","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":187,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"20cc21b3-2160-485e-bcd0-432dfd23d7a3","block_type":"box","text":"directors stands for election in any one year.","page_number":187,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"36d364ff-a32f-40b8-a897-0d8d6fa8bfce","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a9a125a7-ebfb-4967-b6a8-5b0b972ceb6a","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6d5b3593-5358-47b6-a703-c009257af6a3","block_type":"box","text":"NM1026U-5978647-187/232","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"71fb6c2f-7fab-47e4-953f-8db6938f139b","block_type":"box","text":"Committees","page_number":188,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"47d6f3da-c38a-4514-a77f-638a0ca9d3a7","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":188,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"153c96dc-3bdf-42ee-a6f5-c980a0fe5693","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":188,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"c1ebe3d2-4829-4823-80dc-2a5862efd03f","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":188,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"3956e4c2-1178-4bea-b8b4-8b1ca7abe562","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":188,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"162a3ce7-03e0-49ee-b7c4-4d0f4f0374fc","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":188,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"2bf6ec2e-cf4e-4c19-b78f-10baf1796c0d","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":188,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"b3b1a8bf-74b1-4da4-b45c-dbfd1c1e1ef3","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":188,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"337edb0e-e4e1-4930-a0e6-92d4d1424b81","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":188,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"08893b9b-dd48-4793-8fc2-146646bc1784","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"f5552653-1d6a-404f-b10f-412b59ec999f","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":188,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"b463e28b-7ff0-4e39-ad83-07fb94930bec","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":188,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"fac1aeee-97d9-4a3d-8ceb-8f65efdcaeca","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":188,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"d4aa7cb1-aaed-4ade-b0d1-5488fd87f27b","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"80b8c8c4-8fe6-4116-88e9-4b045cb42471","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":188,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"9cd63c99-fe4e-4357-8caf-18e19b3d89ff","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":188,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"1c90e140-4b69-4059-a036-8c4adebff098","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":188,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"8a90f2c5-d3df-49bd-8b36-9ae795a18c71","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":188,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"baaf3e66-00b0-4f27-85ee-1a0d577daae2","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"d1330726-8713-44d9-ba69-fc0fa34d2d85","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":188,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"5d064163-14d9-4e86-bfc7-1e61107c7e22","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":188,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"9806ba57-fb25-40a3-b97c-b04fa32eb23f","block_type":"box","text":"firm-wide compensation policies.","page_number":188,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"2b3ac410-a390-455b-a293-0ea0b70a37db","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":188,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"3ec17c5f-752e-490d-9961-71245fb2cab0","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":188,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"bd71b437-43f1-45b9-ad98-56931e80ce3a","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":188,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"f37c05a6-e243-4898-aa17-aab2f7fbe9ef","block_type":"box","text":"Board and director evaluation","page_number":188,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"6906f01c-4098-4cfa-852d-33868b2e1e7c","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":188,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"a3918844-cf17-490a-a20c-128690d44fd0","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":188,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"f4b7eaad-f957-4c52-b3cb-8e543330998b","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":188,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"d5f14f7c-e3d2-4a26-9f80-4246d321e99c","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":188,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"f08464dd-020d-4a84-aa4c-dbe37a584828","block_type":"box","text":"a result.","page_number":188,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"432c771e-3757-40ae-8358-1d5acba412af","block_type":"box","text":"Access to independent advice","page_number":188,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"106ba068-f3af-491f-b0a4-692bd7aba184","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":188,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"afddfe05-c485-475f-80a3-c462cad509d5","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":188,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"259f6e45-b6d2-4188-b601-20d3e3745502","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":188,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"ea5000b9-3cb4-4255-aa99-f13a45c7e723","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":188,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"0fa84b35-c214-4dd5-957a-c265c21838c0","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":188,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"ccc9e716-1f7e-4bb5-a04c-075801cca85d","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":188,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"5d3cb5d4-9434-4956-b433-8704c0635754","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":188,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"487716f1-5531-4c35-bf77-cd21d1257a8d","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":188,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"408cff31-f5bc-4c97-a86d-9f3c89af3421","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":188,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"204e0acf-994f-4b55-a593-fee7f8d89330","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":188,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"f92f7b46-0609-4a68-8aae-fbbc8746bc0d","block_type":"box","text":"per formance.","page_number":188,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"c8da35a8-787f-4fdb-a620-af896b9be20a","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":188,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"2a769ff5-152a-45f2-b065-ab6ec1f97bcf","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":188,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"03bf45dc-c82e-4fb7-b18c-047b85d76962","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":188,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"ba0b6537-b9d5-4fa9-89d8-caccd94e5d82","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":188,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"41994379-80d8-4fa0-9dec-851facfb7906","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":188,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"c343064f-cb83-4fc7-9684-9fbb06a6e69a","block_type":"box","text":"recruit and motivate.","page_number":188,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"e52b36d3-4a9e-46cb-b51b-20d98b49dc46","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":188,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"9a6bb941-9b49-4631-b2e5-9f148b115b2d","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":188,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"9fbe9836-473d-47ec-9348-aff7878b7c6c","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":188,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"a6eae90f-3599-4f29-ab8c-8f6bb6091796","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":188,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"c06777d4-948a-49fd-9a57-e5cd1d818006","block_type":"box","text":"arrangements include:","page_number":188,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"a6587115-6f56-4ea7-9268-5269aef6412e","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"f8f3b8c9-80f1-4118-840c-2387a0f7a27b","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":188,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"553be661-80d6-4cdc-84fd-24146cabfd6c","block_type":"box","text":"the company’s size, sector and market.","page_number":188,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"4a3fb4d2-c64e-4088-922e-93c1c0bd7551","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f3b1d76d-3d10-414d-b205-0272f5ee496d","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9ff02739-40a2-44e4-b25f-63091e18a953","block_type":"box","text":"NM1026U-5978647-188/232","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4f709373-98cd-4e57-af4c-b248a8eed870","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"6d73658b-58e4-487a-8e89-cb965e8957b3","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":189,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"21e18f88-5815-4a23-b3a4-0d757ee98087","block_type":"box","text":"strategic objectives.","page_number":189,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"ff89beeb-6609-466f-95bb-fa5aa31f23ca","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"b1a9e596-5792-424f-b209-d5ec39cc2693","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":189,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"774b7285-1100-47ab-8fa7-54fc2eb30c6b","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"ff97a6c7-52d2-49e6-a7fd-c4cddeb35534","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":189,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"5bdfd8cd-94d1-451d-b742-50a53df966e0","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":189,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"7721c223-82c1-44ff-a912-78d136a34a82","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"da080900-9ada-4ec2-8f94-a41ddb4962dd","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":189,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"90a9ac5b-602c-4359-9a0f-b00024239fa7","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"14288a54-c97a-4631-847f-d441053d20ee","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":189,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"8100f31e-4032-46c3-b8d8-507cf138a278","block_type":"box","text":"transparently.","page_number":189,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"80a703d6-3d00-4cf4-955f-dad298efa360","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"66b0d8ab-814b-4a21-a634-21ea4b5ca4a7","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":189,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"685d5e7c-a644-4a29-a65d-9e402dc1436f","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":189,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"47ec9cbe-1d2a-4557-81f0-04eb67649441","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"50715df0-c243-4e30-8954-805d7718aca5","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":189,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"81698f8a-d674-4819-8094-daa04938dff3","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"e6232b58-2221-4081-aff9-fe9bd3700986","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":189,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"2c880a86-2668-4589-9c52-82418fe5ea45","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":189,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"fd9f58a9-608e-4f2c-b8b0-141269b41cdd","block_type":"box","text":"misconduct.","page_number":189,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"9929a447-0800-44b6-aaf6-fa72b3ca0f5b","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"7d397dea-7801-4e79-b2d5-8a482041bbdf","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":189,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"ad25ac53-ddbe-45ca-a473-3e4d0144bb97","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":189,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"2a3c39b1-73af-4e6c-ad6f-d84886e403aa","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":189,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"fcd568a2-3321-4009-96e4-c1ab1f97a770","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":189,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"f6d81f1e-399f-47d9-8034-edee632e17e2","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":189,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"19fc4fa9-2cd2-408a-9835-dbc655c1ae42","block_type":"box","text":"committee, or the most senior independent director.","page_number":189,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"f0d8187b-5019-480d-8db8-124071d246f3","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":189,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"975bb479-9f90-4ef0-918d-c1726e2b96ed","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":189,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"b567e977-65f0-4ac0-a536-dfb6bf14beab","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":189,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"321c0cfe-b3fd-4a55-a0bc-b17ff547974b","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":189,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"eaa06848-4193-41db-80d7-cdbbe7099732","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":189,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"dcc72c6a-b0e4-40be-b129-1474a80cd7c2","block_type":"box","text":"CAPITAL STRUCTURE","page_number":189,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"d1e4b87b-5706-438e-82a0-c6b98879877c","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":189,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"34f143bb-dd56-4b09-83b0-16bd450a8560","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":189,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"8c66b9a2-2fb6-4c30-81a9-50b3dc422b5e","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":189,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"0353dc2e-63e9-4611-ad88-c26165a38105","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":189,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"3e65a4ef-f800-495a-b0d8-8c1a92e6ca8a","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":189,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"dd9ee79c-0484-4329-9387-71bdb4dbf870","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":189,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"0c39c6d6-f9d8-4382-8eee-beef659901d8","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":189,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"83a7a1c9-b3ed-41c2-9065-d9590f32802b","block_type":"box","text":"Share issuance","page_number":189,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"2b6903c4-7676-4a95-b44b-935cfc4b8acd","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":189,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"04422439-81da-40fb-87e0-d729b94636c1","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":189,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"a792542e-6785-4ad8-9d37-2079921c8238","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":189,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"44f71135-be50-4b39-9907-e0c4be758e5d","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":189,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"03b1ea83-3827-4e95-b110-164870f4970c","block_type":"box","text":"market environment.","page_number":189,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"2a212d93-628e-4718-beb9-dbe1c753d056","block_type":"box","text":"Share buybacks","page_number":189,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"5d2db910-48d0-4c60-9a8f-01bcad9c559e","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":189,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"0c2ec1af-4c68-43b7-97fc-89fec1297542","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":189,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"97287cef-3b23-492a-9ca7-8d47bf4b4ec1","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":189,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"4ebad640-0234-4ec6-bdf1-d8f40135e3a9","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":189,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"dd2d0d32-3b2a-4504-9018-50b321b4397f","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":189,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"4acb1fe6-1555-4f5a-be5b-49c20f33f61e","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":189,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"2ebf2eff-579a-4739-bbb5-5c4ad55225d0","block_type":"box","text":"of the company and the market environment.","page_number":189,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"e368d935-c7b5-4ace-9b55-72d935f7d2b5","block_type":"box","text":"Dividends","page_number":189,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"6c27a791-01cd-46eb-91df-4d964e0663b4","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":189,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"f492da89-34e5-42a8-9d8d-dced04f800ee","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":189,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"7171e103-e0aa-4542-88c9-73345727574c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c4c3d3f9-f2ae-4f56-9735-1415f8b2a7b7","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"5a47183b-a979-4231-b58e-7b3f7cb0162d","block_type":"box","text":"NM1026U-5978647-189/232","page_number":189,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f70c3e9d-262c-4602-8552-cc66136958c1","block_type":"box","text":"Differentiated voting rights","page_number":190,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"d757cd5d-524c-4e7e-8d8f-d719676b681e","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":190,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"ee334c0b-81cc-4e1f-9968-8308f36b09c2","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":190,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"3c810da6-0781-4c50-918e-68e8f6edb5a5","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":190,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"ad63189d-becf-4c55-8d66-35d91f09dddb","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":190,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"188f9046-f3b5-4ce2-92e3-908ff5102310","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":190,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"89b70514-ba32-4fde-9396-27534b6dc3fb","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":190,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"a697f4e4-788f-4479-94d3-0adf0173b555","block_type":"box","text":"analyses of proposals.","page_number":190,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"9e508d5c-2354-48c6-a11a-8240fee7b5a6","block_type":"box","text":"Mergers and acquisitions","page_number":190,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"5a894109-893d-43e0-bcae-38d065d0a50d","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":190,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"dd743a2e-54d1-4c9d-b560-ed8dbd7f0d71","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":190,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"af671ad3-7086-4526-99ea-6db9f0fd3a17","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":190,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"9e6a9382-7df0-4c90-ba22-c110196cc867","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":190,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"31d1e58c-b0b3-488a-b4e3-7b973b356eb3","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":190,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"0cf1d9f2-5d94-41d3-9ec4-f1780c6f82da","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":190,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"3c2cb49c-fa16-4ba1-95f4-c3716ddf4567","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":190,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"d1bea26f-3c23-4019-ac88-be0e700cc9f2","block_type":"box","text":"Anti-takeover defenses","page_number":190,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"41967f8c-d542-489d-8598-cfb1dc264c9b","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":190,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"a3e59b02-93a4-4678-9fac-d8a17793795f","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":190,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"d4e6d541-fc9b-4712-bd6f-4167c3396572","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":190,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"2bd532ae-857a-49bc-9351-278d80e02943","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":190,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"323dcae8-79de-4271-a36b-a31e358bd995","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":190,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"71bcff3b-7617-470d-884f-36cb87850f8e","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":190,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"64b0afb4-341f-4558-8b1c-2ac4076f4e69","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":190,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"fbb7cb2c-5a87-497f-82ce-f83938e2bb7f","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":190,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"5fc6bd8a-dec5-4090-aa45-c0a4f28c407b","block_type":"box","text":"Shareholder activism","page_number":190,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"7e7c406d-7690-4ad8-9cda-a6bc30a8cc8f","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":190,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"90876100-8fbd-4fef-8a0f-af4ca1a725f0","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":190,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"383c440c-a103-4e7c-a2a3-d3818ac47edb","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":190,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"ac3f557e-fe4e-4804-bb75-2b2207872baf","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":190,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"575c23eb-6b3c-4f24-b279-494b72505626","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":190,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"bb6166a1-9f8b-4355-8e8a-db0bd51e291b","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":190,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"8289d46d-8541-481e-b84a-d892070c7fca","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":190,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"980c3d05-0b4c-4060-94b5-570f1ea3547e","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":190,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"e5fa4bd4-4796-4f94-9e45-08934cd5cd97","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":190,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"6f53e92b-513d-483f-bea8-8ec23046e511","block_type":"box","text":"protecting shareholders’ interests.","page_number":190,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"a974f774-6b48-4ece-9b6b-609c892c6844","block_type":"box","text":"Significant shareholders and related party transactions","page_number":190,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"b3ba3bfe-2991-411d-9dbb-d8f6ced3c1de","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":190,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"0325e640-ada7-4478-80c7-ccecfa69a3ac","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":190,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"bf9dc3d8-ccce-46ce-88ac-de46f5462316","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":190,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"87a389cc-9e58-4403-85b8-b8ac6a510ec3","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":190,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"12b0ec1f-bbdb-44da-a94e-a8d99c39bc54","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":190,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"33192ba7-aaea-4296-95d8-cb0141117293","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":190,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"4f2f2c67-ea93-4a40-af5a-bfccc40f0235","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":190,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"5b5eb244-d59f-4204-a385-fe29ab96f802","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":190,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"7a44f100-677a-4652-af61-a393e2fba017","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":190,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"56d4a9f4-5402-4d9e-b1b5-893ee2eac002","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":190,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"4a783325-9224-442a-82e5-fc26e3e1feb0","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":190,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"6dc28333-d0bf-4538-9512-a498fc477f86","block_type":"box","text":"audit.","page_number":190,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"e06e5b75-22f0-48d2-8023-a7183d78de1d","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":190,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"9634d8fd-20f8-42e1-9678-dc40c2f8f046","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":190,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"42415211-1389-460c-97bd-ec275821c877","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":190,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"f6f1949f-c783-4cd7-9280-44b3d9f2aeae","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"347b2f15-0bec-4e4f-a77b-95803d56a768","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":190,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"d461eb4c-2ca4-4223-a862-181c26435b74","block_type":"box","text":"NM1026U-5978647-190/232","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4eb96438-33c1-4296-a69e-1b9630169552","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":191,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"5b3ccbf2-5f83-4183-bb93-5e2178184342","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":191,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"7716e596-c768-4bae-a087-aa0ab73f88e1","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":191,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"c2653aca-036b-45af-8e37-9e532ab52b99","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":191,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"1c67f701-8989-4211-b12c-9cd41fa07ef4","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":191,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"df4a7f59-2f67-4017-a664-7d83ea5ba483","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":191,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"56986016-362e-40b2-a706-2d3d1a0b32cc","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":191,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"5fef0539-54b3-40ad-b09a-f657344b3523","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":191,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"b0bcf6a0-7f2c-4aea-864b-fcca438326a9","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":191,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"32596e27-239d-48ae-943b-bda4f90a36a6","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":191,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"0b7ace15-8c58-483d-8fd9-b5b4dd9c402d","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":191,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"8f96ba51-2aac-4f70-8215-2734e5386839","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":191,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"ccbc83fc-0b72-455a-8621-e535fadce40c","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":191,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"4471f1ee-c27e-41bc-9693-63645da4c467","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":191,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"1ae425e4-82f8-4e8e-b617-593ab75293d1","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":191,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"d7127f20-39c0-45f4-9a7d-9718ee3e7cf8","block_type":"box","text":"9","page_number":191,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"323af691-cab7-4be8-b2af-c01cce2b4460","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":191,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"d2dc0c03-326c-42a6-853e-bc6a3595650a","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":191,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"e86b169b-8e36-40d3-90aa-7aa428511e12","block_type":"box","text":"standards specified by policy makers.","page_number":191,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"060d16dc-48ff-40d7-8ffb-8667d7099382","block_type":"box","text":"10","page_number":191,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"61724226-10ca-4b70-8de5-386b25509338","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":191,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"603ab10d-9d13-41bc-bd25-978c29f731a7","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":191,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"c767ba2b-4309-450f-a14a-ecc633dc97ea","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":191,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"c04c101c-46a8-42be-aca4-4cb94ddc0a6b","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":191,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"43a97a3e-142c-4cc4-aff8-1c1b9f64bded","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":191,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"61c33284-e3c6-4c82-896d-46c5b2d2c1d6","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":191,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"9b906829-2e9c-4c51-bf11-ed64444dd1a9","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":191,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"7b53571d-68f9-4b22-82a0-7cd0bef6cb35","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":191,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"21c383ae-909e-4ab0-82c9-78f95d7d2e32","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":191,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"0472e1a2-7e54-484a-9788-02a2cd9e6437","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":191,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"c5b4c137-aa42-42ca-9f9a-11449b4e540f","block_type":"box","text":"remained independent.","page_number":191,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"ffcab592-6a30-4a7b-898d-30ab4aa86949","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":191,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"f942e814-e664-4e99-a837-116a198baf3d","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":191,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"51708ed2-0fe9-4b2c-a2f6-dde282136902","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":191,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"556f7236-a6c3-410f-bc3a-fb2f1177074c","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":191,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"e0f986d1-1d8e-4057-8036-4fea3d54eb24","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":191,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"feb47335-195d-48d1-8447-b5e7e8a0d159","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":191,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"114a2025-ad1e-4cc1-b0db-15ed3a4da3eb","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":191,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"c27486f3-5f38-4809-848f-0d90dcd1a461","block_type":"box","text":"General shareholder meetings","page_number":191,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"8ff90e83-88c7-42c2-a56e-209bb7aecd6b","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":191,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"41759b2c-0b58-4708-acb0-343cd8a622d8","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":191,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"be4b49f4-cc79-4130-a7aa-1574c27e32cd","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":191,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"16bcf377-9cbe-4985-bd04-f407996128e2","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":191,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"5ab3548f-48cb-443c-b8ef-d2a4b6f3de1d","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":191,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"838b9279-56da-4f48-be6a-251dc61ce206","block_type":"box","text":"an in-person meeting.","page_number":191,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"c0dd0df9-d247-47c4-85c2-34dac2834f4a","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":191,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"592cc944-6918-4d2b-a38f-c2e27e4134a6","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":191,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"a55f6ca5-b4bd-4925-8212-d7379df67230","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":191,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"19193368-36f4-476c-a9ee-f6e4298366e4","block_type":"box","text":"par ticipation.","page_number":191,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"82c586c4-9404-4d61-b115-a987e8c590f0","block_type":"box","text":"9","page_number":191,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"17f98d51-e907-477a-b01f-68843db67444","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":191,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"b3c93544-04a4-4f88-b561-e8012802d677","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":191,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"26f30fc3-f4bd-433c-914e-f11096b01fcc","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":191,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"a98b4e94-2236-4f90-8785-1fd7fcdb6335","block_type":"box","text":"Disclosures.”","page_number":191,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"4fca47f1-fe23-40cf-b96d-68a0679b5444","block_type":"box","text":"10","page_number":191,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"35218cc0-9e58-45e5-a7b6-e60e1046360d","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":191,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"e859ce7d-d47f-4de3-a453-895e5f8f90ee","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":191,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"5b6969ce-f3ab-40af-97b5-2676e0cbc1fa","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":191,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"753bd8cc-9118-4dfc-929a-25b7cc396f97","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1a94b85d-ccd7-4588-9df6-3855769213ec","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":191,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"cb7cba46-3cf9-40c3-802c-7eb12e77c222","block_type":"box","text":"NM1026U-5978647-191/232","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"87abf95f-5aff-4822-ba80-f123e8fc1a03","block_type":"box","text":"Bylaw amendments","page_number":192,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"01e5c52f-f29e-4f73-82c0-436df9dc9ae6","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":192,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"488c3255-dd93-4f06-b673-85cf0cf53a0b","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":192,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"357c43c2-fa16-4920-8ab1-20918595501f","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":192,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"df171028-8d2c-4a6b-b4b5-f6d3701773ed","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":192,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"62356f1d-aa3e-49ec-97aa-1103c3cf4788","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":192,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"89da61e8-d4d9-411c-b38f-ac3b9bd05b5e","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":192,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"b44e563b-2fa4-4802-b83a-3840a329e2af","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":192,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"d7fb70cf-b0c7-4f34-836e-ca3220777324","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":192,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"e344225b-ff01-4394-ae3e-804e655baa9f","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":192,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"e34d78c7-3889-424a-a7ff-02b92a902052","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":192,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"cc900602-0780-4d52-9746-f703fd5141b9","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":192,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"ccd65a28-ebc7-41cf-9b94-6bff20e5d97c","block_type":"box","text":"nomination process.","page_number":192,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"5a4cfd98-66b9-4ac9-856c-96039f01845a","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":192,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"cdfe043a-871a-4edc-82fc-946a90e142c3","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":192,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"b6cbddd4-2811-4be9-a999-fc01ee68bfe1","block_type":"box","text":"Change of domicile","page_number":192,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"20d7fc31-cbfb-46e3-b61a-3adb5fcbb562","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":192,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"82484427-83de-4b70-8102-436b8b93dd4b","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":192,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"85dcb373-20de-4920-82f0-683499c51796","block_type":"box","text":"immaterial.","page_number":192,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"3242eddb-d0ee-4037-acd4-0ff0bac79431","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":192,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"e73f1152-59a6-4541-a1dc-65c100669c60","block_type":"box","text":"with our clients’ financial interests.","page_number":192,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"222be8e2-2a51-4d52-9d6e-340c09789568","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":192,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"d82d823b-9747-49a3-97d4-02ee45376043","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":192,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"3d411134-d46a-4880-a9c7-c6b20b72978e","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":192,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"667f57ab-1e53-4683-a5cf-17af22376b25","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":192,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"bf364b28-3ae8-4da3-b37d-2d988e3f932b","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":192,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"0399ef84-92ff-497d-9d89-749b41123db1","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":192,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"66e02f5a-b09c-48f1-86e1-c752c30d9fe2","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":192,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"8f434c2a-6276-4618-9402-ffe34cfde96b","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":192,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"4f30f834-3ba8-4282-99ce-781d958a7ad0","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":192,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"1e4329c0-1715-49cd-a76a-37719a7305d7","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":192,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"54a5362f-fb05-48ce-9260-7721e1b88939","block_type":"box","text":"relevant to a company’s business.","page_number":192,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"dcf36d41-8dac-44b4-9e6c-47a9ddab68e4","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":192,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"356c7783-188e-4b33-91f5-e3b9e6cd177a","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":192,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"ab383879-4569-4e68-beed-97193a2f37a7","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":192,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"3bcc0b45-8e74-4a52-b469-85dae84eb548","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":192,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"60df7831-8cae-487c-a981-bb982135c437","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":192,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"e4f8a52c-7668-4aba-bb56-ef05e6eaf634","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":192,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"ecdeafa8-8a43-4d5c-b933-574de017fb91","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":192,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"bb77f80c-234e-405d-ba44-336455d0b08d","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":192,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"e98017f3-b3a8-4d6c-a39b-02cf463bc823","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":192,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"4e322328-fd00-48dd-9124-b1d06f5e5a7b","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":192,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"ef5a8eee-b9b0-4bae-bd8a-e579d8a1b05e","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":192,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"d03c35dc-5e56-4ba1-8bd1-9158a631997e","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":192,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"21d220db-d624-411d-873e-751daa7d2836","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":192,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"c7b8dccf-755d-4d3e-89e8-cb876d086f40","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":192,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"084d34ec-413b-4ffb-8a7b-acba5a38b700","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":192,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"cef7fd06-cb03-4b8e-b68b-53b1a0420cde","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":192,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"94831d7a-6187-4629-bfb2-630e43dc93e1","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":192,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"b84d18aa-08ad-499a-b24d-7febb9ad52ea","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":192,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"198622f6-05a4-4b62-a7c5-c9cdc4aa767a","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":192,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"03cf936f-4869-4d3a-9ac8-3e7dadc74a2d","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":192,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"1a8e682a-7f6d-4c7d-86b5-a717a4551606","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b6ce114a-7afd-49ad-bf0a-3b746f25b869","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2bb05ed2-1a31-4d21-835c-76157aa66b0a","block_type":"box","text":"NM1026U-5978647-192/232","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0ef6e66a-ae60-4f11-b7a9-632c34804d39","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":193,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"f8300ebe-abf7-42e0-8a02-78029f47bd26","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":193,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"5ba89c65-c6b5-4424-8d45-ff23bb1545b2","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":193,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"aa96b63b-0657-485b-970e-51a421e754b2","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":193,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"37e49abe-80c2-449a-a002-f59027b69c2d","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":193,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"7f44a585-cf54-4858-818a-b817a7d038b9","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":193,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"ec8f2974-f3c4-478e-ab25-14a4da9d55af","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":193,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"d36286b3-7788-4135-b7f8-524faf162169","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":193,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"1239b71e-dc7e-4593-82d8-11cee99d05f1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"288fab02-b01d-41d7-8719-45cb863e94e3","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"42b2f1bc-1fac-470b-b7e9-1fb5bda58a13","block_type":"box","text":"NM1026U-5978647-193/232","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8ad417d2-f5d7-45c6-b2d5-910d6f17b764","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":194,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"51853870-81fc-4e1c-8f77-c4516d34896b","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":194,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"eb16f106-a405-4f65-93d4-48c2b890eb4e","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":194,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"500455e1-301c-42b5-af34-43ab07014787","block_type":"box","text":"11","page_number":194,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"eecb46e8-3260-44e4-b8fb-b25ccb7ff10c","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":194,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"3883f452-0f4b-4650-a81d-588ea6869499","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":194,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"ab44d76c-55bb-40e4-acfa-f32047569352","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":194,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"29cae69c-7c62-4ff2-b53c-ea60cbfeb659","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":194,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"571874a5-c27f-46eb-97a1-b0538f39289d","block_type":"box","text":"regulatory requirements.","page_number":194,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"37335037-9f8f-489b-adf9-68d3f1cd60c0","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":194,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"a0002020-0dba-4c3c-a8ff-5dcf2959d84f","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":194,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"cd6aa22e-929d-4556-a03f-2a18842cf970","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":194,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"3dcf0139-0aad-4c63-80d8-1545bbd34c93","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":194,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"dcbe0b43-d453-492d-b235-189761c90d60","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":194,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"4767e4d0-ce8d-4128-bf7b-5b7daaf85149","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":194,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"84fd2313-b933-46d8-be69-d21be80e3707","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":194,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"4b7df9bb-eaf4-4fa5-8845-4b01fc740492","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":194,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"cc72dced-1d75-4687-bfc9-c86bacd9903a","block_type":"box","text":"returns.","page_number":194,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"9d8af131-4972-4c2a-bfb2-396cf4a3f104","block_type":"box","text":"KEY STAKEHOLDERS","page_number":194,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"0d285b54-5738-49b5-8be0-a977b7cd901b","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":194,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"8207095e-a217-4ea2-8276-fa82b3e95d7a","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":194,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"ca39e5a8-d2a7-410b-8235-b9e91ba83c30","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":194,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"4be67df6-d920-4a8f-bdb0-e51f11dcf366","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":194,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"722a48c2-9977-4313-a14e-113ee6e5cf30","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":194,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"fd85be89-cb41-4c98-8d8b-30ae1c361880","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":194,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"384d6c45-ca78-4d54-961d-ddf14cd28cb8","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":194,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"2cad3383-c6ba-4f2e-b7b3-6f3ac35ae72f","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":194,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"283406f6-1dea-4e98-984b-96dc27fe7912","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":194,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"b90999e6-d390-48b5-87f7-9432e3532feb","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":194,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"025dc7b3-d9b4-4b76-88d3-9e7efb0a9b48","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":194,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"9a6f38e4-c766-4768-b814-56dce994ce52","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":194,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"9427c150-ff6f-4e81-aaa0-54ef10e591f1","block_type":"box","text":"i.e.","page_number":194,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"56be2a07-7ae2-40e9-bd1d-b6bb677dc3ed","block_type":"box","text":", one in which global","page_number":194,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"ddc38968-9da9-4aaa-8634-e99b9398da7f","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":194,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"0967f0aa-606f-494e-90ec-820b270effe9","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":194,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"fb8bc678-3685-459b-8edc-aac43be26148","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":194,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"923515ba-cc1e-4246-9895-ae270bf5b2e7","block_type":"box","text":"client.","page_number":194,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"ec2340a5-4fc3-42f2-95ab-40552219c62d","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":194,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"857bd7cb-8b47-43a4-9ccd-cec0b4a032c3","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":194,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"846a668b-b78c-4de2-9c9b-608c5bfc14f0","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":194,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"92cfaa42-c43f-4930-94ca-e26114530844","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":194,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"4686db71-c579-4e7c-aee4-0d398f74aa68","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":194,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"0a92720b-0378-4cb7-bf72-78f546b4ce99","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":194,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"83d14e61-20ac-4fd5-9ee2-d3e5718d867c","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":194,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"99daaac3-5701-473d-8f18-57029105edd2","block_type":"box","text":"1 and 2 emissions.","page_number":194,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"49af668d-b51e-4e79-9865-f4f8105582cd","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":194,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"4d57907a-4e31-4a99-a56e-8c6ea326d69a","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":194,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"a865e027-78f0-462b-8873-be2e9ed3b44f","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":194,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"4583d417-68ed-454c-a807-c3bfb0d3ec03","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":194,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"974bc12d-488d-448c-b618-a5bd0bb84823","block_type":"box","text":"11","page_number":194,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"403fdac6-d9cd-4085-98c0-6df1d83cd05d","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":194,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"bf005fff-8217-48e7-9a98-057fb6b9f1ed","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":194,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"3fa3024f-f383-4f39-8902-903a41c4f77b","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":194,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"5eb8b2c1-123f-4e5c-827c-04c75090b6ed","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":194,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"a36661a0-3dee-4bd7-8419-c39099ad4f34","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":194,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"124d6d43-fb64-4aa6-bd2d-9c6f8544a792","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":194,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"aa3d7e55-dcf1-4e4e-aae4-c998ba695256","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":194,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"036c3b72-47d3-4220-a196-ae6f16d9bbc4","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":194,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"628f997a-13f0-4016-84ec-083d9fdb32cb","block_type":"box","text":"sound governance framework.","page_number":194,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"81323f84-edf1-4fe2-b299-2e64124f3df7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3d88b8e2-de0c-4dd8-a26b-b722fe497b8e","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"818445f7-1b20-4f9d-8211-9e07bc93ec6b","block_type":"box","text":"NM1026U-5978647-194/232","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f8552554-cd47-4147-b5f8-ebf2d8c3cced","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":195,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"934bb0a5-b0d8-4307-91c6-2358029227d0","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":195,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"1d449b49-9f27-4093-bf0a-c0272b6c6756","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":195,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"bfb7cd9b-6293-4dd0-9692-6fe9297d71fa","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":195,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"cc2aee0a-ed35-42d0-81b4-82692109df8e","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":195,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"db18ae11-0cb9-4e17-a9c4-f67f5e82143a","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":195,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"c4a1e053-18e3-413b-a9cf-88b5d40454e1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ed54cf0e-fb13-41b5-bbd7-cd11550ab51d","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2b032b66-8ae3-4de6-a948-6cd5e0e7021d","block_type":"box","text":"NM1026U-5978647-195/232","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a461d1a7-47f2-4248-8392-014ac273ded8","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":196,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"a560b915-1c3e-46ce-8b7e-1b90077703c9","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":196,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"df6faed5-59a7-4966-96ed-fd28f19d5e84","block_type":"box","text":"Oversight","page_number":196,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"17942166-d333-4d8a-9613-96e43dd93df5","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":196,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"fbb99cd7-f160-4c5e-aafe-1e40afa6cda8","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":196,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"c9f4749d-4746-4722-8887-5bd99855f000","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":196,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"545ed4e7-ee1b-4d48-9bee-306f2fb2897b","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":196,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"a015f653-49c7-405d-8e46-076367b87faf","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":196,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"b184676d-c548-4096-81e7-16f688fad888","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":196,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"4569a4a4-4dd3-49ee-bd0c-9ceff4742480","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":196,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"7b9c35d7-9b00-40ac-95bb-0b9cad81139e","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":196,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"7b8e63df-f3e1-4b21-b2e8-ed904a47bf93","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":196,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"c750f20e-4313-4cba-b577-99558b0577c3","block_type":"box","text":"relevant active equity investors.","page_number":196,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"540fe77f-3e8a-4f86-b9b6-a9a271942eff","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":196,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"2db59d55-f12c-4313-8b59-54a99cfa520c","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":196,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"55f6c263-fa1e-47cb-809b-70a80660e461","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":196,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"efc42219-1397-4892-906b-c30236043949","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":196,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"2f6032d0-0e57-45b1-bd98-29385517f386","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":196,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"3a4f884d-78e3-4568-bc96-fdb93ec9b00d","block_type":"box","text":"third-par ty vote services providers” below).","page_number":196,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"d8224070-d33b-41da-95b4-7ad3b4eb66e3","block_type":"box","text":"Voting guidelines and vote execution","page_number":196,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"b7510725-cf59-45a0-870a-6722292ba31e","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":196,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"81de8d89-532e-40f5-ac3a-34ebb4a335f5","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":196,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"c965cd63-2687-4c4b-8bea-9f9cb4add2b4","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":196,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"88e7485a-7d25-4c59-8ba9-2ac6bbf07d6e","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":196,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"bcac811b-8d75-46c4-bc22-8512ee3cc021","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":196,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"0fc77252-9d60-44e5-966f-52d79afe32dd","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":196,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"9b8e7c7d-0710-4ae6-9d3c-2ab0ee3e94f8","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":196,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"47c4db6f-5a8d-4538-8815-1823b6c97f92","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":196,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"4f53f613-03db-4492-93f4-0e26eed1445b","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":196,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"5f3953e5-dff0-483f-958d-9976ad06b558","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":196,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"3bc7127c-67c9-4615-945a-df2fb7094489","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":196,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"7c21fda5-9a92-46b6-a9e1-92e0a4625894","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":196,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"84dfcce5-ac07-43b3-8640-4ba2e7ec3ac8","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":196,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"4518d505-48d4-4dd8-9962-36b100f24bf4","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":196,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"c66d93ca-d3b4-4a8d-8790-20151ab8a0fd","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":196,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"32eb46a4-de60-4470-9491-a5d92cb4e204","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":196,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"d28f5385-8feb-46e3-8729-ffaf51aa6a16","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":196,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"180c3a1b-5ebd-4a2d-981f-379e3481f8cb","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":196,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"fbafcfee-ae07-4216-8d16-9b4612e002a8","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":196,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"d6b84ab9-5eb2-43c3-8b1b-55125319349a","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":196,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"694a430b-cb44-4489-91fd-16f1aece298b","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":196,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"f0a8bd33-4fce-43cc-aad7-0140b48fc18e","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":196,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"28515c7a-2c36-4a2a-86da-defb2b97687c","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":196,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"620b5850-c85e-4a20-8a6f-54977c4b1ee9","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":196,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"4b19aaa7-5867-49ca-ade1-043afd0244b0","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":196,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"e7a3490d-4d2d-4323-80c1-1f1141fc4a82","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":196,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"2b88a79f-9a0e-48a2-a087-dc8ce1a0ceb3","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":196,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"0a1c1896-abb8-4bdc-9885-27ce97c5e612","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":196,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"6a188e67-b9f9-48a8-b6e2-5438d797dabf","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":196,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"03b394a6-d401-415b-af42-c76d1145e0af","block_type":"box","text":"Voting Choice","page_number":196,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"bb57975e-b80a-498d-a2eb-3eff2ec14e0f","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":196,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"c0bbbfba-4c54-4ab5-b503-118e5b4dafb5","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":196,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"11d8538e-62f9-4389-8f06-7c5e69ed4434","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d7218304-8d6b-4f24-a6bf-24b5de12074b","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c56af410-b8eb-4a4c-801b-245df47271e5","block_type":"box","text":"NM1026U-5978647-196/232","page_number":196,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"255d615e-084b-4a3c-94d2-8d21f5f5e3ed","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":197,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"dd078e18-20a6-4ec1-8853-86a7f28adf9d","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":197,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"636cc988-3dd7-4b3b-8826-c4d807ceab12","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":197,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"ed9024fb-80fe-444b-891d-a5f9fca64a42","block_type":"box","text":"strategies.","page_number":197,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"f50dcc80-a5d1-4f34-bcc0-a7aed0fda89b","block_type":"box","text":"12","page_number":197,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"460670fd-a922-4341-a3bb-f40d06426144","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":197,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"b642bf13-82d1-4743-847e-d17ab5de8b24","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":197,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"1bf83899-de32-4e6c-9447-23423032effc","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. 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Funds","page_number":200,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"a741c0d6-a229-4829-a0e6-c275a4e42f2d","block_type":"box","text":"□","page_number":200,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"64769ab0-aa6c-4932-bb24-6fb742919b60","block_type":"box","text":"Other","page_number":200,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"a6bf8c82-dab5-49e8-a60c-e01df75aacdc","block_type":"box","text":"Objective and Scope","page_number":200,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"3874c5c6-5cde-4f74-acb9-2fb23e9f0900","block_type":"box","text":"Set for th below is the Index Equity Fund Proxy Voting Policy.","page_number":200,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"1648b1a7-a961-4069-b888-6e3bf1b532ff","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":200,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"440d5a47-fd3e-4ace-aa39-3174f8b3eee6","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":200,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"3b6cf69e-52a7-47ff-b7fa-32a4ebbfbe01","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":200,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"7ea76cb2-d57f-408d-9a4e-0a542c246c6c","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":200,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"b0d7458f-b11e-41a8-a710-63647195c2f8","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":200,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"e54a6987-f656-4f77-84d5-51ce7c2f12d1","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":200,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"371eca61-de05-47c8-a62c-0b79454e58a0","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":200,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"3d2acdbb-cf83-4e18-8d92-f2a982cac685","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":200,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"11f42be6-179c-4756-8827-c0290ea3345d","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":200,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"0a481eea-1011-4775-ba69-c0bd01eafcf2","block_type":"box","text":"the iShares Core S&P 500 ETF. 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Our regional voting guidelines explain how the BIS Global","page_number":205,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"d9f82408-0b42-48a6-b432-ee953b297f08","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":205,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"f52f579b-8e8c-44d5-a97c-2384e6a4de08","block_type":"box","text":"4","page_number":205,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"d8a2cdaf-e5b0-411b-b162-341ee36da097","block_type":"box","text":"3","page_number":205,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"85127ecb-fc3a-44c5-86e9-721d4b70a0d0","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":205,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"0b6db021-785f-4842-bf51-58d660393b50","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":205,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"7cc47479-9cf2-4850-823b-78d3f4015a99","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":205,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"b3a4cbbf-7403-43be-b00d-bde7f2657da5","block_type":"box","text":"4","page_number":205,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"e337ac79-e77a-4450-a859-31f74bb0edea","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":205,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"5439906b-a083-404a-804b-5bea410328c9","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":205,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"0fea9891-e21f-4d61-80f5-833432351945","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":205,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"66023979-8f8a-4c12-9cc0-a8f387ab6209","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":205,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"09d065f4-a03e-4d2e-9424-234b7809076f","block_type":"box","text":"guidelines.","page_number":205,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"b8a6ddf2-2757-4280-8635-3dda14b04d94","block_type":"box","text":"BlackRock Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7a0f12b7-0093-4dc1-a8ba-4c88d36036c5","block_type":"box","text":"Global Principles | 4","page_number":205,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"38075951-bf47-4c12-b0ad-d9ffb191c05a","block_type":"box","text":"NM1026U-5978647-205/232","page_number":205,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"67e4c5aa-a2a0-4ef7-97c9-a4f5e9994df2","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":206,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"0cfa7099-a70f-43c7-aa14-3a237c7158ce","block_type":"box","text":"Oversight role of the board","page_number":206,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"4cebf698-4a6f-4bef-9478-7a9826e66213","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":206,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"0dd32350-63a3-445a-bd5d-f8c588d432cb","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":206,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"5ef77205-e715-42f2-9d3d-96af11b768e7","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":206,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"48a986df-c3da-4e90-b7a9-a3cd3f445c78","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":206,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"b333746c-677a-47de-a956-39b0d2f2c37d","block_type":"box","text":"long-term financial per formance.","page_number":206,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"4b076a88-71f2-44bb-9701-8d46dbf19fa1","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":206,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"22fcc3ae-6739-4bf6-b917-f8929f14571f","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":206,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"827e702b-ea65-4321-8458-edf3ba08ad5f","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":206,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"3c53a55d-c729-47ba-984d-fcb99c27be10","block_type":"box","text":"the business environment in which a company is operating.","page_number":206,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"1ba6fae0-cab8-4bf9-929d-45bcd60be6ee","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":206,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"24202b6d-5ba2-4604-b373-6685b57a518e","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":206,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"467630b0-8406-4372-a936-00848bb2e442","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":206,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"00c2a856-ec39-478e-aad1-97669944fb42","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":206,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"897da401-2689-413b-9dd9-7ff97064409c","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":206,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"12e4e089-bae4-4212-888f-08bd6cada48b","block_type":"box","text":"mitigating such risks.","page_number":206,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"72e3b6ac-f7b6-46aa-8b94-2d2f2434492b","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":206,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"54b86dbc-5416-4b45-afa1-2615aafa7388","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":206,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"93b66819-45a2-46c2-8e22-7b7773916306","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":206,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"ee0c18cc-08a2-4756-aaf1-dbec49690902","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":206,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"4ca5991e-cbf7-4535-9e91-512eb36b2abf","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":206,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"22fcea5b-0698-4861-b5dc-8571153e8d04","block_type":"box","text":"strategy.","page_number":206,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"a577ef63-cd27-439c-a1b1-99f75b1c0d94","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":206,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"3c9e8454-3636-49ac-8f65-83ce0fe94a48","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":206,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"4938d0f3-47ab-490b-b68b-d717965a1d7a","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":206,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"f9c6da87-831b-40f2-943e-be6ac44200f9","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":206,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"3c4562d9-1ea4-4ca6-800c-1a484fb48cc0","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":206,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"f9087913-1a7c-4971-a13c-b78094ec0acb","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":206,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"754ee2ee-1a51-409e-8019-5bbe699a19f0","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":206,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"a9cb90b3-70e5-499e-b348-a820003ae9a3","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":206,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"e8d785e6-4ee1-40ff-9a15-bc2c4624fb8d","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":206,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"b9623440-6431-483a-a10a-0cdac1439e80","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":206,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"3badb375-83ef-43cd-a8b4-ac8d47a7abbe","block_type":"box","text":"Regular accountability through director elections","page_number":206,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"92a51a34-d391-43da-b47b-b259e3bec9a3","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":206,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"fe117bd1-c730-4a93-8c7f-e92a093fceaf","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":206,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"ddfff8ed-7ab0-49bd-982c-14930181da44","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":206,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"b461e101-238f-4070-81ec-13a93560c3a4","block_type":"box","text":"5","page_number":206,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"8597ec1a-a0d3-4fec-89cc-fb5652a260a2","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":206,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"05e9e81e-ac55-4bef-ac32-e285995d94a3","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":206,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"776f1c9b-fe00-4ccb-a0f7-a1366da99f72","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":206,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"1b22ec18-3877-46aa-b575-84e04440a3fd","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":206,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"9337158c-ce47-49d4-8073-5538c0f93252","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":206,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"193733bb-3259-4383-afaa-658b5a53456b","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":206,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"db8d227a-1c42-41e3-b453-6e66272765dc","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":206,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"6218a38d-bbc5-4dee-a3d5-b947943fa42a","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":206,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"0676ec5c-f006-4d80-91e8-b2802d40e202","block_type":"box","text":"5","page_number":206,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"f73072f6-ce23-49e7-b984-f5eb6fa5e6f0","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":206,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"2ea8af25-7fad-4d18-9c23-f4dc65320e13","block_type":"box","text":"market regulation or voluntary best practice.","page_number":206,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"329bc81b-0204-4d00-823a-4e441c421d69","block_type":"box","text":"BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1a584fda-15b9-4480-a5b9-2afb9787c847","block_type":"box","text":"Global Principles | 5","page_number":206,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"67bbf71b-3bf5-4e54-a97f-6217bb8b55b6","block_type":"box","text":"NM1026U-5978647-206/232","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6e2891a3-c84b-4a6c-97ff-de838a766b0a","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":207,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"2a337681-0802-40d5-a4b5-7683daa5d0b1","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":207,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"f0a454a1-3728-40ff-9567-71263f227f08","block_type":"box","text":"recently.","page_number":207,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"37024de0-0c95-4ec3-b918-4ff745cf8b40","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":207,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"ca967a58-1f00-4090-81b6-e86752f31469","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":207,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"349e185e-2a5a-4716-b129-d0730ba11319","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":207,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"edaf7eb7-721d-4b43-a15c-1dc5ebff9ac1","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":207,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"926ab3eb-a1c4-48a6-a9d6-b96d0bf45a37","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":207,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"65ea1b43-0bc2-4477-9863-293b55e18510","block_type":"box","text":"Director independence","page_number":207,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"2c17ce5c-8df4-4b9a-a7dc-fdb16467c8e9","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":207,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"a3e8140b-4a78-44c5-9360-e4629de188d2","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":207,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"27638408-d165-4f1c-9910-e81273010eab","block_type":"box","text":"6","page_number":207,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"a3b6c5b7-f790-47b0-9d8d-72afee0e44da","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":207,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"420159b0-19d5-4680-97c8-a522510f0dd8","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":207,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"bdf3005c-09fe-4508-8464-92703046a57f","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":207,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"53b4fa57-8eca-4975-8b06-46a67e2dcbaf","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":207,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"b6e7a37d-4a3e-458b-a5ad-f7f062a6c3c5","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":207,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"e9b82640-92eb-4642-b9f4-20e28b609b19","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"c548c7e0-5003-407e-9919-cb108d305cfb","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":207,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"5908ca49-f39e-4ccb-9056-b175b58b0fec","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"a470a45a-5f7b-4e7b-a197-c3572a3ef7ff","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":207,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"65328b6e-ac3c-44cf-85cc-d08701d4d2f0","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"1a63e3a8-a932-4e0c-8f33-8431bb78a8c1","block_type":"box","text":"Interlocking directorates","page_number":207,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"db4a1a78-de9d-4278-a062-93f769b06bf5","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"c71d6cf3-c1b5-4132-9fae-eb0ae58cc3c0","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":207,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"7218523f-c3dc-472d-99e3-8097b0a6bef5","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":207,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"ec42f4e7-e5dc-4cc6-9c6a-ff8c02301418","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":207,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"5707cec9-c4b4-4651-b49f-f4d436e51d5a","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":207,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"c32adec6-c3ef-4235-aea4-e5f84e91e349","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":207,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"a12a8d9f-9c10-4bb5-bb4c-43012857622c","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":207,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"4a8bbf95-73ae-4071-9754-43edf021fd63","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":207,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"d021b16b-2d24-4c03-86e2-3291802de8d5","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":207,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"f9e7c7cb-982c-491d-b914-0faf9a0ae5a6","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":207,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"cb3f8084-8eb6-40f1-92d1-53550996805c","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":207,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"14fb1174-a395-401f-a748-7502fb562991","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":207,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"6839fd1b-ec4e-49d5-b09c-d27a6b99ebde","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":207,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"f01a2134-5d09-4c83-8a87-5b64b4516010","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":207,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"ae4e7eac-e914-4560-96c0-9f5963b39bfa","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":207,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"02d6ab62-1d1b-42f9-a90a-5a1dfeb158b3","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":207,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"d4491bce-391f-43f0-b833-f3b6d37649d5","block_type":"box","text":"Sufficient capacity","page_number":207,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"e9762e22-1df6-4389-97e4-f5186cd1ea9d","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":207,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"dfc2d8b5-6fa5-4941-b3b8-4a8375aba5ac","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":207,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"8c899885-b882-47f5-bc12-904131278c6d","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":207,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"004b2edf-301a-48fc-9acb-9fce5e21b3d0","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":207,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"dcabd781-2f51-4a8d-aa0a-b58ca5949042","block_type":"box","text":"Board composition","page_number":207,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"5c383e9b-0538-4a6c-8024-d02ec882ec71","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":207,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"6537bf10-a07a-4678-a474-94343cf8dc66","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":207,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"5d2fa40b-176d-49b7-8256-c186d9365bea","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":207,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"889eaa63-9514-4846-8b88-a87dc816e934","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":207,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"aa5938c8-fe84-489a-9f2a-8e0197fb42ec","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":207,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"3958f4a0-e3a3-4d03-bad4-286d4468b111","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":207,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"5a30ba4d-93df-4056-9a33-bb967c8d8249","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":207,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"c7b7f4f0-03c9-4259-af9c-0002cd240a55","block_type":"box","text":"6","page_number":207,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"a9f3b6c7-84b3-4091-8735-a97a69bd02e1","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":207,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"366ee2ff-fe0c-4163-b864-799d2ced404a","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":207,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"011b32b2-5fc6-4850-9277-39a7c95e480e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8d07eab0-4d79-4210-88aa-03d4c359e807","block_type":"box","text":"Global Principles | 6","page_number":207,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"9f6df5aa-567d-4c51-94cb-82641cc78874","block_type":"box","text":"NM1026U-5978647-207/232","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ef13abbd-fd08-4bfc-939a-aefcb0527840","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":208,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"e17ece01-9f28-463b-88a4-bdd9f250c7e5","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":208,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"d9470baa-858e-424a-9e0d-5e2566435afd","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":208,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"1b872e88-b574-4ab9-a88b-8753c12b21c3","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":208,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"9f9ffae7-ca07-4ee7-82fb-6f70603f5912","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":208,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"e4188013-de54-4286-863e-a00f00282abc","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":208,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"6b8bbb8b-f8f5-4164-ade7-e266603c23b8","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":208,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"bd326e2a-7d48-4dcb-ae45-f3f180c7d90d","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":208,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"1471a30f-901b-44cf-9224-29f4925d77ea","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":208,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"6965e76a-1222-4ebb-8a9f-26950218f263","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":208,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"3dadd5f3-55aa-40f2-9549-c8d37513b0f1","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":208,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"0f1ec888-7902-4f13-baa1-a30f49187c80","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":208,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"a7865eae-83ae-438c-a1b8-546d137494c5","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":208,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"0d2dffc1-c906-473b-90e0-bfa76ba27315","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":208,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"44cf9412-734e-4b8b-a892-bd1dfe489ae6","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":208,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"b183d064-fa38-4b19-8924-fc16369f07f5","block_type":"box","text":"systems.","page_number":208,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"f047de8f-d8ba-41dc-945c-640020545585","block_type":"box","text":"7","page_number":208,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"2d315366-202d-4b48-a96b-47f17945792d","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":208,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"4d982836-9473-43bc-b28d-07b98d6e2d0e","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":208,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"656816d4-82ac-4000-83fb-c26948d05c90","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":208,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"bc2557cb-3d60-4a01-b758-e41b913d9512","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":208,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"91cd5e7b-1cbf-418b-839d-0f909e5c0ad2","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":208,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"cec35620-94b3-4910-9cf3-73ff0583b671","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":208,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"18b5f878-a6b2-4795-93f6-0e584eff853b","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":208,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"7fa1f792-d73f-453d-9a5b-e66de05bae7d","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":208,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"2b3b4e43-8409-4968-9cc7-3c2d1d8ffd2f","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":208,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"8e696a95-ba9f-4c03-9ba6-ebd8b1f3dac4","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":208,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"27446dd7-4298-45db-b76d-3f710677ae32","block_type":"box","text":"or internal audit function.","page_number":208,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"52e4a32f-c98d-4e8c-87a1-5966a06d8f8c","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":208,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"428367f0-492c-44db-bd9f-a621d75d11b7","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":208,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"22a77323-a649-41b9-81d8-be4f453f58d0","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":208,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"d515e3d5-9ffe-468a-9444-eaeac635bd3e","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":208,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"a6e5941d-22ba-4446-8d97-94c00f7ac769","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":208,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"fd22a24b-b30b-44de-aefc-543b4b4ee9a3","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":208,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"5d264044-1841-4d06-acdb-6b3df5e75e66","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":208,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"50b4e6f2-ac29-4b6a-b37e-3a86bb407718","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":208,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"eccf15bc-401d-4c4f-933d-29e66e32e73e","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":208,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"1eead0d4-1935-400f-b1c9-71f7888ad021","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":208,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"1cd800ed-0996-4d65-a02c-1390b7aa3ffd","block_type":"box","text":"risk.","page_number":208,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"6a05ada5-ac7b-4bb3-af55-c90f949eea1e","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":208,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"5213db4b-246d-4c72-b1d1-7883802872af","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":208,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"a6b9ba7b-4286-4149-b36b-49b8f572e0fa","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":208,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"2a7805d7-2311-47a9-9bf8-74958149acd7","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":208,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"f8d37940-c045-4780-adff-b8363676c620","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":208,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"34dd408f-ddad-49df-89c1-9714ce83ac3b","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":208,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"7f870818-03dd-4fab-83c1-f4972c70ebc8","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":208,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"f7889b8d-fb6d-4b12-a34a-d96bda1c9715","block_type":"box","text":"7","page_number":208,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"484f63dc-1fd2-432e-8ecf-40494cd81ca0","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":208,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"8b44ae52-adba-4232-9951-8e1209d6f56e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":208,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"c86659b5-86d7-4028-ac30-6f91eb542f6b","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":208,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"a5d4a293-95ff-471f-91a8-cfa352cd3a70","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":208,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"9512e54d-1037-46fc-bcf7-6b148919b06c","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":208,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"6e1da3f6-ab13-4546-a7c8-14095477d234","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e8ac2543-82b5-447c-befa-6f82bf53ac22","block_type":"box","text":"Global Principles | 7","page_number":208,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"bcce1d1c-4a03-4a5f-824f-1f55c0ee7055","block_type":"box","text":"NM1026U-5978647-208/232","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2d1bca63-e414-4c5d-bdd1-ddee6b4538c5","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":209,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"30b56da2-0b4e-42d8-91d0-511ac6bad670","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":209,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"06d4f73b-a6de-44ec-96d6-d0d25f90c035","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":209,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"b2f24ebf-a07d-4812-9ead-022ef725305c","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":209,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"2ee7d911-51bd-4991-9e08-14a64ab97c56","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":209,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"86a347fd-7ed7-4aee-a977-819321da49ec","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":209,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"8431a8ca-2e1d-46cc-a87d-845406c4cb40","block_type":"box","text":"minimizing costs to shareholders.","page_number":209,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"667f8760-ce04-4995-a496-f246fae08400","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":209,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"6b89e1af-2659-47a2-96cf-2640948bf8ab","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":209,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"479d71f5-11ed-45a3-baac-583ca278e15d","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":209,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"b80bbbfc-a278-4b55-bf8b-2338edfd09ce","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":209,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"c65ebb13-661e-49aa-afcd-815c55acb20a","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":209,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"220ee986-81c4-4010-9819-dcc16c1f6ccd","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":209,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"0aad5e9a-5e73-48db-b8c8-7d5d25718c81","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":209,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"b6294077-9069-4446-9f82-21beb4ed2107","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":209,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"deb3dd48-7b5c-413a-8873-b8aa4404a969","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":209,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"74ba5ecb-4f59-4e9d-b8c0-49e2505f8f30","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":209,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"48f6ed64-778f-45e3-87fd-80a3d162bbee","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":209,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"01de4aa0-baf8-4ef6-92c0-9d44fac6060f","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":209,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"51c86553-a1f6-4c57-8672-9779f6f3e3f3","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":209,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"31755b37-8985-4526-a4dd-33e56063b0f4","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":209,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"a25cf4b9-7a28-42f8-93e7-e5ccec087533","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":209,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"ec5cff8b-59ac-450f-a5e2-8b42dabbfddc","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":209,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"ce1711bc-ba08-45ea-9943-5c8c2b2b4f84","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":209,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"71282406-58e5-4d2d-ade6-44e39717d39e","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":209,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"4cc0536b-f62e-4aaf-9e1d-1b11e0c07933","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":209,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"9eaf55b6-8967-4295-8e68-b7628cbf6e5a","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":209,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"fbb53376-dcfb-482d-a7ca-c95ff87c3c06","block_type":"box","text":"ownership.","page_number":209,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"36f37b39-b5c2-4300-a90b-ad2f7a0315cc","block_type":"box","text":"8","page_number":209,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"706c6073-a740-4391-b029-0e31189d76e4","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":209,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"aa82e1c7-4519-403d-ade7-1c7ade410881","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":209,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"260e2095-d286-433d-83c1-4b9a2efa2333","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":209,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"2b2cf899-3ace-4e96-94a3-dc71fc764742","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":209,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"578faea4-97cb-4a4f-9ea5-d7e45c96b423","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":209,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"1db2cc25-6f94-4c93-b9aa-118d483557fc","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":209,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"0bbe9d6d-14b2-4b9f-b192-bcd54f9ecac0","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":209,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"076cd900-a2d8-4ebd-a398-8057013f0823","block_type":"box","text":"results over a period of years.","page_number":209,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"1e71b724-31eb-4a96-a567-c24c5da49354","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":209,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"fc73e1f4-b1cc-43fd-92fc-f73f2b3dc6be","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":209,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"9d7910ea-2b4f-454e-9a58-a0f2a0b95d1e","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":209,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"39dea882-897b-44c1-9c4a-8e72619111c9","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":209,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"91fd3d23-3182-4100-80d7-db29b869f592","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":209,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"88e17680-197e-4c8b-97f6-5e766e81b371","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":209,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"4d9b4bcb-d15d-45eb-96ad-746d7f583521","block_type":"box","text":"executive compensation strategies.","page_number":209,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"8d361c52-0be1-42cb-a2d8-ad54c94860b0","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":209,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"ffe1c2d3-ae45-4e62-aca4-236b268c4674","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":209,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"159ca8d6-f9ca-4f2e-a511-4b750da1a78d","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":209,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"22049170-19d5-41b8-ae02-7b8b0aca4389","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":209,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"d245961a-4b36-4cb4-9335-a74db4575e08","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":209,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"633309ba-3de5-4abc-ba7c-4a7fe9935388","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":209,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"71fa5af9-acf7-4dc4-a829-31c845435e88","block_type":"box","text":"8","page_number":209,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"d6552943-1c5b-4533-bd74-e5761f0994c1","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":209,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"3717aeaf-f2c1-477d-8699-b8322f569ca3","block_type":"box","text":"different markets.","page_number":209,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"33c29408-1d2a-4abf-874c-5dbab17d67df","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"368c0b80-11a7-4b3a-8ce0-81b80278b423","block_type":"box","text":"Global Principles | 8","page_number":209,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"7b5ed88f-34ee-4ade-8abd-69a322a1d09f","block_type":"box","text":"NM1026U-5978647-209/232","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7c9331d1-0531-45c9-ac83-46169b423afd","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":210,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"32b1cb40-08d5-4a78-b30b-4693b0a17304","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":210,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"9248d8f6-a4ae-482d-9f48-4b94dbe926a8","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":210,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"350dcb39-b183-40f8-985b-57baa1889ee4","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":210,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"46ab36c3-d6a5-469a-a810-a42e43774d24","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":210,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"89ebd03f-8079-41c1-bd04-733b70251a7d","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":210,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"69c0d932-2022-4bb3-9537-65af8a3edc26","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":210,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"16bad0a8-9bea-4314-a706-1177d8821851","block_type":"box","text":"whom they are charged with overseeing.","page_number":210,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"d591ec2a-ff22-455f-a23f-5e2cbe61ba32","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":210,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"81a71b98-5a5b-40ca-88a0-d7022b11b562","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":210,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"9587ed78-9dd7-4e35-87fa-5876dec8eee2","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":210,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"a1302997-fbf5-48e2-a673-4d103f0ac59f","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":210,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"4db970c9-5276-4b54-97bc-973d0212a853","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":210,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"2fceb788-bc94-4aae-ad5f-fcd865e0f026","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":210,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"c594d855-8f22-4259-b117-8a715bfea31e","block_type":"box","text":"structures.","page_number":210,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"45e16fbe-b39e-466b-a667-ba39108c478a","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":210,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"4449a004-0aa2-4813-9c2c-f25beca1adbd","block_type":"box","text":"Corporate form","page_number":210,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"a8506bf1-970f-4e33-8e19-a603ebccde3c","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":210,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"85dc1a08-9c71-4323-9696-6823ba6f0752","block_type":"box","text":"the company’s purpose and business model.","page_number":210,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"bd09bd36-de36-4253-b866-a50769b363c4","block_type":"box","text":"9","page_number":210,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"98504420-8980-41f5-af10-99256be7bd21","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":210,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"eaad4c0c-fb23-4a69-bfcc-0e8e2463e01f","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":210,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"b2705ca3-d11c-4351-a6d2-0081d4cf1136","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":210,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"5d80bbb4-a14d-48e5-9aee-18b43beaa62b","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":210,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"f79f311c-323f-4e08-930b-65e8654d68fb","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":210,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"f938be4d-bda7-4a38-946f-3acc1d75cf41","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":210,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"dcb19a1c-32ab-4469-86ab-5af2fdd05829","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":210,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"1e91f810-eb3a-4358-a2d1-af053385fc0c","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":210,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"1e67ae33-639e-4c3b-a0e2-dc711f0748ff","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":210,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"72cd4e55-a2db-483f-9af2-8001c6b63f64","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":210,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"0ca6deb4-44fc-4f19-8976-e701b3749ba2","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":210,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"c861a282-182d-4f8e-9202-8de11dba9278","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":210,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"06f67f8c-534c-489a-805e-301110d90fb7","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":210,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"db63a24b-81a4-4aac-abed-5cc00fc12a3d","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":210,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"d17e1642-4cee-404b-9795-5c219570c822","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":210,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"34f0d92c-dda5-4f3b-90a5-1505d216117b","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":210,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"f10c3049-9161-4b2c-8d8f-d99aad1d949f","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":210,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"6e28e4bb-e669-4ef7-b02b-00e40a85c7a5","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":210,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"39e32431-fcec-4937-b977-3d5b5de2cd03","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":210,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"a84f10ce-a5fb-46e8-b4f5-495dc1b52078","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":210,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"7eac65c7-c79b-409b-a3dd-7636276ec987","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":210,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"4c8496bd-2867-4077-8791-2055b6c2683a","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":210,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"06e4014c-a3df-40a5-ab36-553368fcf64e","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":210,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"4495b672-e5bb-41d7-a9b6-4d4d81989a5c","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":210,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"dd5b939f-f849-43d3-a09e-07a33693cea4","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":210,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"733a6439-bfca-4a8c-b277-dde5243fd661","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":210,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"99249cf3-3f01-420e-a23a-3bdd7c051221","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":210,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"0d74c634-41e8-46d9-8e6e-3959819c83c5","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":210,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"e7040e8d-ff1f-4580-82ef-b0f37623b7e3","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":210,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"cf727a96-9f59-413f-a7fd-47cbe4862536","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":210,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"e5bde7f1-b8be-498e-b1f3-f8b01e359504","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":210,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"a846b527-208f-4d48-95c1-b3dfba122506","block_type":"box","text":"9","page_number":210,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"aa51f59a-9b0e-4515-9854-17d12f36fba8","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":210,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"4fd9cdca-b352-4702-ac94-d8d622c61a5f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"431bf45e-49f4-44b1-9f83-92968b4afa00","block_type":"box","text":"Global Principles | 9","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"e0e10f07-1a10-4dbd-9928-5fde01ad1055","block_type":"box","text":"NM1026U-5978647-210/232","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b801f74c-f742-4f01-b7ef-9c843effa9a9","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":211,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"c343abf8-e270-4323-86b1-696338fff670","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":211,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"7ff90da5-55f7-4ecd-bc1d-1c0caf95065e","block_type":"box","text":"long-term financial interests.","page_number":211,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"4da8c263-62dc-4612-8993-c67382f98a7f","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":211,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"8bde0021-5f70-4010-b56a-964ceba4b555","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":211,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"4aec5e29-dc72-45d8-9907-a508d0d4b11d","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":211,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"14309cbf-755a-481d-b000-5ed83a9986da","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":211,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"380bd1fd-c0c9-4509-be09-6f25cffdc236","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":211,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"f33360d0-5018-4ceb-8f1a-bfbc8e91ff47","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":211,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"6b08678e-bd29-4aab-89f0-041f68b21aad","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":211,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"52092139-c278-4c53-8d8c-09290ca60fe5","block_type":"box","text":"term financial value creation.","page_number":211,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"33a2e778-d3cb-44e1-8911-c08585dfadc9","block_type":"box","text":"10","page_number":211,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"fc3045e6-3876-406e-bc30-e9567325dd2d","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":211,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"0f633551-733e-4bb7-98a7-7ed505eab24c","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":211,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"03d883bf-b5ee-46c2-804b-ee18ee04c13a","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":211,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"9669f5d9-c242-4094-8cec-4a4ced7a8b7a","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":211,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"800a5c78-d7d1-411c-a311-bf8014662930","block_type":"box","text":"industry-specific metrics.","page_number":211,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"93cd8cf2-166b-43f4-8a08-7ce8bd470a5d","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":211,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"e8a21090-dd53-49ec-939e-f0382b210194","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":211,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"70f0983a-2c63-4126-85a6-73ed8151d91f","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":211,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"4c09c9c0-5d86-4d0f-8ca7-c43cc0bfabb0","block_type":"box","text":"11","page_number":211,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"6ca92b4b-1edc-4823-bf07-1e61f7b4f237","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":211,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"edfda9c6-6713-479d-a43f-4172105c0179","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":211,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"f2ae17df-570f-4815-bf54-f30cb00c61b6","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":211,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"fb4776fa-0413-4044-b1b6-13d7414d53ae","block_type":"box","text":"specific.","page_number":211,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"d97f29dd-c939-47fb-a0e8-bd09f978984b","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":211,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"604b60fa-656d-4ada-91ba-79eb87125bc6","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":211,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"ed690040-db95-4768-82b3-8229cf4aa2dc","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":211,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"43e1d2cf-cab6-4c9e-a3f8-3ae7939d156f","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":211,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"edbc5843-3316-43a0-aa5f-2109ae383c6f","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":211,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"11feb883-f1d5-408c-ae15-6d2892118323","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":211,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"02f8246c-2a4d-4fca-8e8a-9f7e5433bf8c","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":211,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"44ab018d-3505-41e0-a65c-33251b24b451","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":211,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"49466dc1-617e-4664-a580-182f1899ea4d","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":211,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"9d74fb86-5fe0-46a8-9bbe-e8990c206ee6","block_type":"box","text":"10","page_number":211,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"2e0fd12b-39e0-4b4a-9f0f-473f60fe59ad","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":211,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"6147f935-105f-4844-b048-ddbab0879099","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":211,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"b6a3b597-37bb-43af-a0b1-07ee1a071b96","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":211,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"f2bd8afa-910f-41ff-82b0-6493d0076bc3","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":211,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"9cd07dd7-1467-4453-90e7-fa91b94c05ce","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":211,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"ee862cc6-e588-4613-8f67-026e2d1f0705","block_type":"box","text":"11","page_number":211,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"524a48e3-5412-4a6f-95e6-3102aac35b44","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":211,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"5493976d-752a-4008-a68e-9d921aedb6c1","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":211,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"5eabd3eb-bcf6-4298-86ab-d7d25c473efc","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":211,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"7859b690-7ac5-420b-afae-b3036fc4dca4","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":211,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"6bbde2de-86c9-4970-a619-8959a303806e","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":211,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"4242adae-fdf7-49d8-b6cb-76bdeb8b77bc","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":211,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"feb8609e-2e3b-453c-a953-375c4a5844a3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"644cf730-fa7e-497f-a27c-e702c3dcc388","block_type":"box","text":"Global Principles | 10","page_number":211,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"252a39e4-bc9f-4741-9c50-ad0470a3b4e0","block_type":"box","text":"NM1026U-5978647-211/232","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"be0d8cc6-b1ed-4637-b01f-7bee3d9559ca","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":212,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"8fe91c88-5b56-4636-89d4-0de4772382f2","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":212,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"63d0d1f4-865d-4c9f-85f1-465b016caefc","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":212,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"1e75d0c3-a734-4cd7-b754-a2dda69b4899","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":212,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"57ace6a2-fc19-4f71-b90d-3af8bd91ea9e","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":212,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"8952ada5-ae21-49aa-a846-74af3452a450","block_type":"box","text":"12, 13","page_number":212,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"2895a9df-1ea7-4f5a-8744-ac9b33a020bc","block_type":"box","text":"From company disclosures and","page_number":212,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"acfb8b8e-ac02-4e2b-9e4a-c621ed98147f","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":212,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"e8b4383e-55f6-48c1-b30b-67bf8d8936d5","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":212,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"142bab64-9f70-490d-b922-a6a64b694e58","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":212,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"5d83a948-8968-41e1-8b6f-3bfee71bf810","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":212,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"11d89cbb-a5df-4726-ae09-0757248bf47d","block_type":"box","text":"viewed as best practice in the market.","page_number":212,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"2fc7607d-2fe5-4c73-b35e-994d8daef271","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":212,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"48d3648e-fbe1-47b6-9cf4-be2d4c798c52","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":212,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"b36c7e40-fd02-4b93-b00a-c870a52e5b49","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":212,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"aedd19a8-7c71-4e36-91fd-037ff848ec65","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":212,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"29ccbcf7-5ab8-4e28-b9eb-f0f78647ef88","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":212,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"a097c45d-2d0b-4fe3-a304-7859f5083406","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":212,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"840c1a6d-cd7b-461a-9040-5d497f257892","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":212,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"18645a7b-c341-4969-8db2-5449256b0b26","block_type":"box","text":"interests of their investors.","page_number":212,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"c99fcf3b-6887-4c9d-afb1-b83e4caeb9db","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":212,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"afafa728-49bf-4e99-838c-4c061a582cbe","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":212,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"f2967f1c-a2fc-4197-a6fe-7c077fbe484c","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":212,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"0807b252-ac85-475f-a09b-c5d59a094748","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":212,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"7f6137d3-7699-4727-9fd5-c7be4ac8bc8b","block_type":"box","text":"good-faith basis as methodology develops.","page_number":212,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"dd76e30d-eaa4-47de-b513-e78715b20cc9","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":212,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"77fa3ddb-f16c-44d4-9185-dcadd12ddaa7","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":212,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"a84ac7c9-36f0-4f02-b2d0-050fc4683d19","block_type":"box","text":"generate long-term financial returns.","page_number":212,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"0fb885ed-e47b-412f-a466-0f8ab3cbcfce","block_type":"box","text":"14","page_number":212,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"af88c46b-6b8c-4ed9-9e54-3bd6546ede26","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":212,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"93ebc90e-c062-4dfa-a4d8-f7672031e378","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":212,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"3b36008e-148e-44a0-9376-e09d2b33b244","block_type":"box","text":"15","page_number":212,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"ab517a1c-20d4-4866-b5d6-28459286aeb8","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":212,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"d7f9eb53-146b-4a0b-adae-c7f56fa8b7e7","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":212,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"7912425f-20ac-404e-9a6f-26416e5065b4","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":212,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"2c02d0a3-1bb1-4e7d-8a7f-fccfcce2f5b3","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":212,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"eb9d9fdc-4d47-4095-abf2-232584954d5f","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":212,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"3a628e52-a23c-4ba6-b2e0-1f58341b0df5","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":212,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"d8d7d854-b253-485e-b76e-b034c809bc14","block_type":"box","text":"12","page_number":212,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"5d6f35e6-5e26-4241-9157-ede74b27a9f6","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":212,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"2262c5b6-f8d2-4f76-bf62-6d5c4d7d7e33","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":212,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"4555ee61-b041-41fe-a456-f6dfce73cd7a","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":212,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"0f36743f-81f8-403d-bb18-4a0880789ce8","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":212,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"c3ddb16b-957f-49a3-aa3a-611faccd56a2","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":212,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"6a61a4f9-4a5a-4cdd-a65f-6675544f47ef","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":212,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"9e2c08b7-00ee-432b-9f9e-474a1d7aa22e","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":212,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"83c4c064-7207-4acb-91eb-493edf755198","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":212,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"c05d9282-3a46-47dc-bc2a-8f8aaec1a594","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":212,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"96632a1d-e511-45a4-b61b-7d1ee2c9ed14","block_type":"box","text":"13","page_number":212,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"c9907612-d96c-4d29-8f94-08bc4b0c86ef","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":212,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"9512dfbd-7e02-471f-b711-b7274f300a52","block_type":"box","text":"2025.","page_number":212,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"493814fa-466f-4aa8-a7da-294713929627","block_type":"box","text":"14","page_number":212,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"afbf6c30-359d-4dec-a6ea-7a49fe452f93","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":212,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"7c8b74f6-0b34-4908-96cf-ad8f8bc58840","block_type":"box","text":"2025.","page_number":212,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"bdb84ed0-6abf-4a07-92d5-0eaa72909fae","block_type":"box","text":"15","page_number":212,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"64beff56-8d9f-48ca-b079-68ebcdd5f1fb","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":212,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"c6b3182e-25c5-4c2d-bcb7-965fc18d5746","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":212,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"3c8c8d60-398f-4c1a-bbe4-2b3b7befee3f","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":212,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"201ade16-9c94-4a51-b213-2090dd387a52","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":212,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"61f04ce9-20eb-4c8c-84ac-4d8ba52370a4","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":212,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"6f3b1dae-ca79-49ff-a83c-a368a17d9038","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bbc6bc22-06e2-4eab-9519-f76b3b6949b6","block_type":"box","text":"Global Principles | 11","page_number":212,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"88a26c35-2ca0-478e-a309-77fc4fa7cbcf","block_type":"box","text":"NM1026U-5978647-212/232","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"235c1da7-14f8-45ba-b5da-82f9568bb32d","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":213,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"1e1158b8-826d-4105-ba78-c38e8a96a5d5","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":213,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"a5e8d813-2e05-4ddc-a20e-b33f7c7a4c3a","block_type":"box","text":"16","page_number":213,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"d6d46db7-4fae-46ef-bf17-fe248ddc77e3","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":213,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"cab69e2f-28dd-4266-9d15-f3a2d5f0a854","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":213,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"edc5b1d5-b972-42d0-bbaf-0ff3ea505f92","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":213,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"3c7c10a8-bfcc-44f9-afb5-8f3f092532e9","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":213,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"9716ef24-2b45-4719-9156-92a3da75fe08","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":213,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"314b77f3-0829-46d7-b28a-0fad9226820f","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":213,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"199bdda4-6c97-4dce-8600-db95c80ff07a","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":213,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"6f54ef8b-10e1-4b46-bfcb-97df3dbcfc46","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":213,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"221b325d-4f37-4a77-961a-01eefee304e9","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":213,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"861e383a-9a6e-4bae-8d63-0715e2f3ff6f","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":213,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"ec76a13b-799c-4a17-ade2-b123426b330f","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":213,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"47b14ecf-7395-49cb-a41e-7fa8d9cf0ee2","block_type":"box","text":"impacts.","page_number":213,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"9f231450-a71b-439a-8a66-76791ead6a51","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":213,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"79aaf5c6-ac0a-4802-b515-3febf36a13d5","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":213,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"f6789a01-49e2-4e4d-a9e9-8028badbdd57","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":213,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"3503ba9b-8d3f-4545-8df2-590c44032d64","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":213,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"63c7ceeb-95cb-42eb-9e1a-576a61978635","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":213,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"aa2dddf1-9ad2-4036-a241-9c8abdf97321","block_type":"box","text":"clients at the global and regional level.","page_number":213,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"857b9b38-6328-4a1e-8305-3cdd18e3e311","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":213,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"727f290b-89d8-4159-a9ff-924ad1555a45","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":213,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"6be7f671-46a7-4971-9f21-42ce58b46bb2","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":213,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"40eaac0c-ead0-44ea-bc6d-6ed19abb72e2","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":213,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"9d565adf-1f4a-4e97-90f8-763ba55f0908","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":213,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"11da31c8-ab1b-4f4f-b282-175716c47c98","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":213,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"7d56bc53-879f-4c0d-82d8-ee531cd0d344","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":213,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"884f47be-3c69-4f96-9bfd-4575c646dcdd","block_type":"box","text":"are independent from the investment stewardship function.","page_number":213,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"b458f8ad-1119-40c6-b955-ca4f2a5d2f5e","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":213,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"81e81fde-561e-46a4-9369-2988a64c2787","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":213,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"ed2a4de9-5c41-4c41-a5ae-b5a0c82069f5","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":213,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"26de29b1-381d-4056-938f-78512871199a","block_type":"box","text":"VOTE EXECUTION","page_number":213,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"bd86e795-d3f0-449c-89d3-7dcf59f5f173","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":213,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"000a9c72-6f17-4474-a962-cb7fc74f7e7f","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":213,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"6942137d-e1b1-4d2d-bd0a-1ff625adc956","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":213,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"ad02047a-c9f2-4f79-887d-87cf147dfb97","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":213,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"822448b6-520b-407c-bc14-c5a4de1b5536","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":213,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"32e95faa-059a-4d97-a2bf-ec7bdcc1d946","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":213,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"135a0f18-530a-416d-8cf5-3b3c9e5b7440","block_type":"box","text":"management policies and procedures,” below).","page_number":213,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"b4249c02-bbc6-49c6-b587-125924bdff52","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":213,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"786a8e2e-1551-4608-95b1-6d31c70e764c","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":213,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"d827b119-663d-4373-a49c-e0a633b61787","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":213,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"4717760b-21da-49c3-8b75-bbf01626be12","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":213,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"90078c76-e100-45d6-912b-3139e5e06df5","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":213,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"c872207d-1c36-43c6-8983-24b93a663ca9","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":213,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"a5d2937b-c6af-424b-ac5a-f8b17c081ae7","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":213,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"4a19aa95-3cd7-4f31-badc-ed451523b456","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":213,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"9aad5f4e-da10-40a9-abb2-c6193d9cf324","block_type":"box","text":"16","page_number":213,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"cd9d0235-5c66-4a21-bcb2-c10c98925541","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":213,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"fba48635-97c1-47cb-9ce3-de7d7d3f02a5","block_type":"box","text":"December 2025.","page_number":213,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"4ec03a1e-e390-47d3-baa7-1d22b66a1223","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f86c3cbd-5509-4f54-8a01-a198848fe37b","block_type":"box","text":"Global Principles | 12","page_number":213,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"d89bbb03-6052-49d7-9a8e-e04bc72babb9","block_type":"box","text":"NM1026U-5978647-213/232","page_number":213,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2e9f7118-96c7-4574-954c-b833a2b475e0","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":214,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"99a6b2b3-d6b8-4152-a602-c13f5e2e20e8","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":214,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"4a940322-bfc8-4d34-b205-ac6576e8572f","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":214,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"efb8a8c7-1007-4a41-bcff-f087017d6f28","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":214,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"22c4b799-f12d-4d47-be24-79077291caa6","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":214,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"a4dc177c-4571-4d0c-932b-7af356276d64","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":214,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"66232541-fcc3-440f-8cd1-8ff2fc855aea","block_type":"box","text":"enterprise-level vendor management activities.","page_number":214,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"4803124d-a185-4a02-ba1e-754bbc96c806","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":214,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"4d7171bf-6843-4b5e-8e4c-4d83762cb204","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":214,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"1409d321-0728-4f0f-a09a-8054acbc639a","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":214,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"affe7560-5821-47d9-8bc1-6735d2c47244","block_type":"box","text":"BlackRock employees.","page_number":214,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"8694f764-1c9f-48f9-8159-500bc612d4cb","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":214,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"f7a81a0f-cfcf-4464-85db-f6aed5a99856","block_type":"box","text":"SECURITIES LENDING","page_number":214,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"0c58cdc1-dc9f-44d4-9063-936eb41617d3","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":214,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"98f9bbd7-decb-44b2-89c9-1c4aa6423c7c","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":214,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"9111bb6a-ff7e-4fb0-9b47-2063f4cf0d53","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":214,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"a4962d7a-2d38-4ea4-a1a1-d12467d7554c","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":214,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"2de36a5a-8489-475d-bb0b-c01275913a80","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":214,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"30de9db7-09bf-4b42-a7ad-429165ebe545","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":214,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"09a6cbc8-0124-4079-90cd-36b051591e36","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":214,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"89146a02-ac0b-4177-98f6-4e26d2a4c200","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":214,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"07e2ad20-3e12-4b83-8b39-a66fc86af9b6","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":214,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"23ee7f6c-fb02-4d82-9cd8-8ce55339643e","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":214,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"1f56e5cf-a38d-44b5-8c26-4977f2663532","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":214,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"89723ae1-a3e3-49c3-9209-a3ba6a7754d4","block_type":"box","text":"of recall consideration).","page_number":214,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"c305337a-d6c9-4907-ae8a-1b90bf1ebe29","block_type":"box","text":"17","page_number":214,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"7fc284c7-261b-4acb-9c46-ef05ada3aca6","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":214,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"40033c55-0f3e-4784-9b35-7faf28b7a476","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":214,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"ca1fb5cb-e9c4-4759-a924-6573cbe82d68","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":214,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"acf6c786-da0c-4671-addc-ed7072fc38e3","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":214,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"ecfc6160-a94d-4769-a51a-44c503c0e516","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":214,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"cedb49a9-1443-4e75-af72-99cce75712c9","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":214,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"0ede1a12-ec12-4322-86ba-8b82eb7a1a3e","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":214,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"5fdc7f56-57cf-449d-8fa9-13288d2f2337","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":214,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"98e18693-9d72-4999-a500-1ff2a9aa9be7","block_type":"box","text":"and may modify it as necessary.","page_number":214,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"ea57f5f5-325a-4144-8e33-36aefb0db37a","block_type":"box","text":"VOTING CHOICE","page_number":214,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"0d1ab997-c040-492e-9a18-776e497dcccb","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":214,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"df148022-d031-4819-a1c5-9be4c26f5283","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":214,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"8342f88a-9aa5-4dbd-8cf2-0b973b7ad05d","block_type":"box","text":"18","page_number":214,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"ddf4a122-f757-4a19-b30b-ff75ec69f98a","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":214,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"0a86595e-979e-4995-9183-41c4468bcdf2","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":214,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"9badc0ea-6c64-4e0a-b4db-86baa44bfb1d","block_type":"box","text":"17","page_number":214,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"1f92ac1e-a97f-4636-9705-452937f68d19","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":214,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"fcd3f4a9-4fb3-40ae-a00a-91d6faf97b61","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":214,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"be8ea524-d27e-4702-801a-71475e818f06","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":214,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"706617ea-7ac0-4ddd-a29c-37b144f56949","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":214,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"388539b7-3592-473c-b0fb-921ff44da41f","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":214,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"878649ab-1771-4697-82ab-8879185cdee1","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":214,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"46af5f6c-ef35-4fb2-93d5-33e0d41e3499","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":214,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"6fb8a370-88c5-402d-9321-5fbde882646d","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":214,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"87f712e8-7f99-4ba8-be66-dc05d606da1f","block_type":"box","text":"18","page_number":214,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"0e0518f5-211f-406d-869d-878cdb244ef2","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":214,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"de98ce5f-ebf0-4ad7-b695-93ad1ebad5bf","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":214,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"761d3402-e44c-4138-b11e-9c0ab7c702cf","block_type":"box","text":"including the decision to lend securities.","page_number":214,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"cedfaf8a-19ea-4cd0-ba6b-d0eb243d2d1d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"21fb085a-1629-4429-8284-b372d898fcad","block_type":"box","text":"Global Principles | 13","page_number":214,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"bb6917cb-b2ca-4999-a448-c4496b629384","block_type":"box","text":"NM1026U-5978647-214/232","page_number":214,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"44bbc566-63e1-4dda-9b80-9cd600088873","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":215,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"2139a79d-9788-48f7-bf6a-e74fa88a8530","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":215,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"8819c3f2-ffbe-4e7c-954c-dd3389dba8fc","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":215,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"c301675d-00e5-47e7-a4bc-8b69ddf43359","block_type":"box","text":"19","page_number":215,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"ff991713-623c-4009-be4a-4b55f44bc9a2","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":215,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"8d3728ae-6973-44b0-94bf-dbd3d471b6ce","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":215,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"7a838871-50fd-4f15-acc6-330cb4bc2262","block_type":"box","text":"20","page_number":215,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"87634688-d3be-4552-972e-79a32f7400ee","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":215,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"e4562da6-05d9-4d7c-b693-4bc22cb32f7f","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":215,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"bc47e8b3-b5e2-43b2-9b0d-62af51be9450","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":215,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"6e914a1b-8b73-4d38-aa43-954716cacd89","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":215,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"380e1c10-b2d4-4c1e-839e-fddcfb35f6ab","block_type":"box","text":"21","page_number":215,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"1d817f85-aa18-4bd4-a0be-4f342d4a1aff","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":215,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"62a3763f-ae6e-4a50-becd-b35814f83535","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":215,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"61b2ab4f-691c-4c62-99c9-ba4a2b3df91b","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":215,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"5437ecbf-cd07-4131-abd5-d7960e22dca4","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":215,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"9a4dfe9a-51ce-4480-b218-94e89df8e894","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":215,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"86d84154-a547-4b25-8732-6166e46bb518","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":215,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"8e768b07-c943-4582-b903-f0fcf116b047","block_type":"box","text":"19","page_number":215,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"6d17b0d3-6c94-40e3-8697-8ada10d5e9e1","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":215,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"333a1443-7be9-4c2a-b054-1077a48fc896","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. BlackRock can then use its proxy voting","page_number":215,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"8c5e2d0c-9f5f-4fa2-a0e3-13770366a7c2","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":215,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"94b0d48c-34b2-4391-9882-1dd9953cfaea","block_type":"box","text":"20","page_number":215,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"c2bdffcf-81e2-4ef4-b5a1-2658028230d0","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":215,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"98c40b2a-12c7-4f17-ab7d-d4816af42fba","block_type":"box","text":"21","page_number":215,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"a6ba0353-f9c8-46a1-be71-443131df41ec","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":215,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"266559ec-3f9e-4975-b07e-99a0c304a116","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5c946116-f717-4cbc-8819-741c5a8f7397","block_type":"box","text":"Global Principles | 14","page_number":215,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"47ab8247-4cec-4e07-a39a-35c4921e88cb","block_type":"box","text":"NM1026U-5978647-215/232","page_number":215,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a302433f-40a1-4865-bbbb-ae70abcef7b5","block_type":"box","text":"Want to know more?","page_number":216,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"6bc781c8-3ccf-4c8b-9dcd-05088a42f3c1","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":216,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"89b8a845-384c-4716-b603-befb1016e6a6","block_type":"box","text":"This document is provided for information and educational purposes only. 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Net zero commitments are sourced from respective","page_number":219,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"0c59868c-ebc0-4485-8cdb-9305f435016a","block_type":"box","text":"company websites, as of January 2025.","page_number":219,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"1f216028-087f-4b61-9df6-f54cd9616651","block_type":"box","text":"5","page_number":219,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"270581f8-b724-4b2f-8fb4-d61674496e41","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":219,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"838988b2-35a5-4e14-9834-d5f8e71b5d0b","block_type":"box","text":"6","page_number":219,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"9fe4cb81-9277-436a-8125-55cd80bca6a9","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":219,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"1f1f9e2a-330f-4e80-825f-0b61dcb80b60","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4c826e60-0f4f-4e42-a96c-097bb803169f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":219,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"8184794d-6bf8-4db7-a43d-a71809420de2","block_type":"box","text":"NM1026U-5978647-219/232","page_number":219,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f1fd81aa-8496-436c-832b-69ac729738c4","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":220,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"9a713edb-d69c-492e-9ee5-a8e1dcb16999","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":220,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"9ff0e5c5-9bd8-4550-a8e8-0c103d2b198f","block_type":"box","text":"7","page_number":220,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"d3004a5f-3e16-47ab-81b4-f6ffb42d3228","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":220,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"21740578-1979-4e8e-837a-551aa481a5a5","block_type":"box","text":"Benchmark Policies.","page_number":220,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"0a521790-445a-4755-b4f2-3ba23ffd1aa1","block_type":"box","text":"8","page_number":220,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"becb010e-d0d9-4840-80ad-0a38a7f475cf","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":220,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"ddea774f-cfa9-4a9a-a4f0-8e83baca6ecf","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":220,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"803cfeaf-a63e-45eb-8d41-540904860ca8","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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Fur ther, the Guidelines consider the","page_number":221,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"ed2d6929-30e0-4d8e-b461-d060af6afc28","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":221,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"0bc3d44d-c285-4e64-af00-1902785ffe7c","block_type":"box","text":"does not.","page_number":221,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"a6a4bb99-1d1f-42a7-ae28-9e5cc7b9e445","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"5dac627d-f69e-4bb4-85ee-b33a1650b0ac","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":221,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"3ae84095-f83a-48e2-a9c7-bcef2e5617be","block_type":"box","text":"limitations:","page_number":221,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"700125e3-1692-4cae-886a-0ab853309181","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":221,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"9853ad6a-17fd-4e1c-bf1f-d6892c6dbd2f","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":221,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"c48d0486-b71a-4874-a9f5-304ea52b2ccb","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":221,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"5dbd8e18-14a0-4063-a6fd-f77dfd8c7653","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"21f5dcc5-2e02-47c1-a0b5-7a4b4d094506","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":221,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"437444a2-afdf-4e0b-b94f-b0a21d751300","block_type":"box","text":"The boards and executive leadership","page_number":221,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"9bdd2423-171a-476f-9b02-ac7b1e972671","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":221,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"0b4e1ebc-f4ed-42fc-8258-ebf1d0d8518c","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":221,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"fc7c0fe2-952a-4392-8c5d-7dc66336c6f0","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":221,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"1043a3a9-a151-4be6-9414-18bb4f6b65f3","block_type":"box","text":"Voting approach under the Guidelines","page_number":221,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"2f79a41a-daa5-4b15-9a5c-4639a8ba1b3c","block_type":"box","text":"12","page_number":221,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"3249bc6c-3db8-4736-b80c-58b37b7049dc","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":221,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"dcadffa3-6d77-4c16-8a6e-385527017180","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":221,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"1d9d2e41-2f7d-4c9c-8b1b-5f07ad11b450","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":221,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"9904c240-4c68-435f-aabf-7524026dd445","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":221,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"ab69766c-9e79-4145-88a3-b054bb0ffb42","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":221,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"7202fbee-0963-49e6-b394-80a9db4c1bbc","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":221,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"6c740c56-9346-4e9b-b3c0-5f90d81d6829","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":221,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"b2a6fc1e-19d5-43f3-a03b-01b619502502","block_type":"box","text":"Corporate Disclosures","page_number":221,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"753f3f05-35e9-4755-b378-c258ed372028","block_type":"box","text":"13","page_number":221,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"87434b05-f850-487b-8ebc-a35b7b177036","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":221,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"78584736-94b1-4b70-93dc-1b049f83ff69","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":221,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"03786fa6-1028-4268-9b6d-20713d93fa51","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":221,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"526f886d-5f6e-49c0-975a-493e83738c96","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":221,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"780bbaf7-b9f5-48f1-8620-38a723b35bec","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":221,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"21c480d1-3164-4f45-a64b-f9939ef9136a","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":221,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"c411b4a2-c344-48cd-a293-02fb00ba8ade","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":221,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"0fb3367a-db52-4dbb-a241-d9f6c078d513","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":221,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"6887bf3f-682d-4ef2-ac7f-d33f165f9dbb","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":221,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"78ec37dd-12c2-4f0a-b2f6-cd12d3d93e9b","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":221,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"aadd71db-4c79-428e-8bbe-e907fed32bc2","block_type":"box","text":"14, 15","page_number":221,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"c430b9ef-88b1-474b-a922-0f213b47efe7","block_type":"box","text":"IFRS","page_number":221,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"94cd1b31-bf0b-47fb-9f19-641dcaa98c4e","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":221,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"59baba25-03db-47f9-a146-251d07b0bda4","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":221,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"88956d98-799c-41b9-bf57-b1cabbd2f67d","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":221,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"d1efd622-e900-4eaf-a4a7-4ae44f4e9be5","block_type":"box","text":"and assurance standards are developed.","page_number":221,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"c534d59a-04b4-43d2-9d4d-274e99dced35","block_type":"box","text":"12","page_number":221,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"702fe3c3-a201-4b4e-84d9-1f2e80c5456c","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":221,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"a7e035b5-21ec-43d6-88cd-c51a86fb3b35","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":221,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"89e64373-aa47-4185-a932-27885728587f","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":221,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"9fcd320d-d9b4-40f7-845e-96d564d63800","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":221,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"8d0257db-f713-45f5-a8f0-ece2a6d382eb","block_type":"box","text":"13","page_number":221,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"23192cd1-1168-4eaa-bee0-809b965bd4f7","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":221,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"e913e4cd-3442-46fd-9541-126ef9ba3f76","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":221,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"5b3ab62a-aff2-4b44-8c75-e21f48d8c4ef","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":221,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"becacbb5-78fd-404e-8164-81384c9932d9","block_type":"box","text":"14","page_number":221,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"c2366cf8-2f98-453f-a8f5-8cac59aa9eb3","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":221,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"8cef79d9-6dd5-4189-9510-07ded4a1b8aa","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":221,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"908717e5-ee12-4aa0-8e87-2c0abd66fa5b","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":221,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"99eed553-f7c1-48d8-a7c5-25b09fe0dcbd","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":221,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"0bf9a02b-03ab-498c-939b-e2d40141da6d","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":221,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"91b84774-3521-46b1-bb18-31eed92aad4e","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":221,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"e8fd4f70-6910-4ac6-9b28-ceac96472f18","block_type":"box","text":"15","page_number":221,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"7cd8d9a1-ae32-4e11-80e2-daa722e62d27","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":221,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"d654c504-bf18-4e37-8809-b52a4c201aa2","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":221,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"2012992d-141c-4d1c-b6d0-842da1d73f7a","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":221,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"656c99b6-948f-4fb2-8b8e-1b0c098e2586","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":221,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"fd126683-3af8-4b97-b567-3f8612af0ba7","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":221,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"50d64531-799d-4887-88ee-e95ab9348b5e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6c94e45c-533a-4eb1-a58e-e4ae9c0b7c85","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":221,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"0add88a4-d40e-482a-ae9e-04c0c99088d3","block_type":"box","text":"NM1026U-5978647-221/232","page_number":221,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f4e2ba71-60f6-455d-8833-fca82ca42f33","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":222,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"4b66d664-240d-4944-b3fd-e50ce511044f","block_type":"box","text":"16, 17","page_number":222,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"15898531-f99b-4138-ac57-6d81a931124f","block_type":"box","text":"In addition, the dedicated team looks to","page_number":222,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"85030b11-80ba-4390-bbf1-9f19b3b9fc46","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":222,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"145d43d9-6c33-4a67-ba56-afeea02ae269","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":222,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"cc257d7e-55d2-42d2-9041-ce75720a330c","block_type":"box","text":"scope 3 emissions reductions. 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For some companies that play an impor tant role in the low-carbon transition, scope","page_number":222,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"46327c73-9b27-4dab-b84c-5ca29ab6ed04","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":222,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"b1a28c92-785b-4abc-8feb-7fdb4631fb10","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":222,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"6689e7cd-2e7d-485a-a11e-2bcfbc6e6b1a","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":222,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"4e193423-1b95-41e8-bbc4-eafcfac8199a","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":222,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"d9a219d2-104e-47c4-afb6-7a55fad4b196","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":222,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"d63c92e2-2147-4faa-9e6a-c5c9b85460dd","block_type":"box","text":"transition risks.","page_number":222,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"9628f7f8-739d-45b0-b245-605833977a66","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":222,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"75cc2fe3-0403-4b56-b307-342a472b3987","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":222,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"26a42715-7468-4455-aef7-ee885f6198f8","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":222,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"2aacaf6e-00e4-459c-b29f-5d2000add6c2","block_type":"box","text":"Transition plans","page_number":222,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"3316d760-b21b-404f-8144-e649c3d4cb5d","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":222,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"bfdf0e22-af95-4eac-9ab0-4be1af1a0201","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":222,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"3c8bf5cf-d6f9-49b1-9265-c648238a0a48","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":222,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"287c3b67-fa92-48ea-9258-b88564e5c4ee","block_type":"box","text":"(see Appendix 1).","page_number":222,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"c02fc4b3-41d7-4735-adef-41222962e89f","block_type":"box","text":"19","page_number":222,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"9ee898b5-739c-4c97-8c3f-0192fad093b2","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":222,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"a08d0bea-07ae-4e1f-a9e6-5cc6ee16798e","block_type":"box","text":"transition plans.","page_number":222,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"71150ce1-8243-42de-a894-b90d2d4fca3e","block_type":"box","text":"20","page_number":222,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"2c98f5a1-6b50-4677-96c9-32caacba5fb6","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":222,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"ecc8dfd8-c2d7-448d-bbbf-017c3467295c","block_type":"box","text":"repor ting approaches.","page_number":222,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"cf048b2c-5755-4c0a-8245-45738fc6795f","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":222,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"ee1d68ca-4669-41d4-a782-14b871449bfc","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":222,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"a418e096-f1f4-4012-ae27-4b39651272a0","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":222,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"267803d2-b929-4881-9068-eab194615fe4","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":222,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"836a718c-37f1-47ee-a8b4-8e214002e776","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":222,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"a72567dd-fdcf-43ad-9a5a-9a67e50442ef","block_type":"box","text":"informed voting decisions.","page_number":222,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"7df60184-c998-4aad-a6f5-ea5d15d1a7d7","block_type":"box","text":"16","page_number":222,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"752a4c7b-34c0-4d55-a039-b7ea96bb9a22","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":222,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"6fa06e19-9156-4e34-9482-0863afce5b1e","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":222,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"542166be-47c4-4cb8-91db-c30017e9b552","block_type":"box","text":"December 2025.","page_number":222,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"944d5782-163d-4d30-b134-b70d2461566b","block_type":"box","text":"17","page_number":222,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"83c7cd2c-155a-44e1-b390-3659cc038ac8","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":222,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"2efa348f-c6b2-4182-93fd-1a671b095846","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":222,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"178b3c99-6ccf-4035-98a5-88e2e59a3035","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":222,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"bc02f5d5-c395-4ed4-8e06-6de9f688b9f0","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":222,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"7dc83102-07e3-486c-b8d8-f7aaee4273c7","block_type":"box","text":"18","page_number":222,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"9b8c5398-d389-4e80-8a3c-00ee1bd053c5","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":222,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"964e62fa-dcbd-4658-a120-27f9b021229f","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":222,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"caca7072-c7c9-4cba-86d2-126895e7cc3e","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":222,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"92d37c2d-e81b-4165-8c18-6a5965ba4b01","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":222,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"f82c43d6-96ff-4b26-9013-25a794a4378d","block_type":"box","text":"material to their business models.","page_number":222,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"5f6c08fd-1f5a-4766-a35e-5684e22ca804","block_type":"box","text":"19","page_number":222,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"d5403469-24e8-412e-b884-0ba36edd9370","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":222,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"e988fb68-9660-4ec7-ab9c-baed695de529","block_type":"box","text":"December 2025.","page_number":222,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"8346dfb5-5bc8-4cc4-bcc3-030c85ea645c","block_type":"box","text":"20","page_number":222,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"9557eef5-8161-473e-a90d-b3edce8d3fa8","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":222,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"525e5c09-abcf-4cda-8f96-27cb4d9aaed5","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":222,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"2ef6fada-dd3e-4e77-a988-97eb48bad9cd","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":222,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"fa18fbb1-72b2-4d98-8ab7-3f31bd098be8","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":222,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"dae08b81-f115-4947-9aeb-b8017c7260e9","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":222,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"d84beabc-6e80-4c94-9859-53072f8a1776","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given for thcoming regulatory requirements in cer tain jurisdictions, some companies are voluntarily","page_number":223,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"869efdb1-d19e-47f9-b6a7-81944cb0cfbe","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":223,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"13a0b5fb-518a-40e2-9a71-4918bba0905e","block_type":"box","text":"with the different constituents in their value chain.","page_number":223,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"bf3eff5e-55d3-476a-ad54-2defb4b6e27a","block_type":"box","text":"21","page_number":223,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"68d32930-c9bc-49f0-b0cb-85a09bda2a1a","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"8ec0abc0-70b5-411a-8723-7e9e6428888f","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":223,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"6a7129de-15d3-468b-a396-852251300bdb","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":223,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"a54313d6-6dcb-4a59-8d19-63b5e14afcb6","block_type":"box","text":"22","page_number":223,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"b61ff5a7-6545-44ac-90c8-c51f777834d4","block_type":"box","text":"The dedicated team looks for","page_number":223,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"016f0f52-478e-4321-9d54-c6c513d042c3","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":223,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"13385e97-a53e-4cb5-9528-e6881caffd67","block_type":"box","text":"related to the low-carbon transition.","page_number":223,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"2b77c016-ad7d-4e00-ab42-111bc7bdfc5a","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":223,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"f993ef83-9fc5-4253-a1b6-730f158722ef","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally suppor ts non-executive directors standing for","page_number":223,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"7d0e3198-d3b2-47a1-bb1b-6243a60fcfb0","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":223,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"9c36461e-7ac8-43fc-9c21-20a37fae58b2","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":223,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"ec4e962a-5718-43c3-93fd-da88a0c992eb","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":223,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"d12e3a1d-a47f-4944-849d-f75590860dd8","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":223,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"7e5bc81d-84f5-4bad-8ff3-f319d236a29a","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":223,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"49d801f0-8ce9-47ef-8066-b5e634997e34","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The research uses a definition of materiality from the GHG Protocol,","page_number":223,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"f32a31b7-ef12-4435-b313-6a88b54f4c87","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":223,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"1838544d-b3bc-4d0d-8643-414be9080164","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":223,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"1df4bb2b-ebe8-497f-bd08-650fcd4abad0","block_type":"box","text":"Website accessed in December 2025.","page_number":223,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"eca6b3f6-8d7b-4114-a51f-5386477dfb31","block_type":"box","text":"22","page_number":223,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"1c0dde3b-6656-4e91-963b-76bd27731a06","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":223,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"f65a56ed-664f-4e0f-a259-bfb7676f56bd","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":223,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"30f5b6ee-eaac-4de5-8ff7-695777a058a3","block_type":"box","text":"23","page_number":223,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"59e3675f-cf59-49e1-9be7-299b953b631b","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":223,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"5ae65f66-e0e4-434e-8f0f-6cf8e2f35b58","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":223,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"8b9ac8ae-02d3-49d6-830e-403b3f7db6e5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"78cccc3e-044b-4123-ac51-7f301ab2290e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":223,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"7b69571d-b032-4b49-93f3-56d47ff037fd","block_type":"box","text":"NM1026U-5978647-223/232","page_number":223,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b0f0fa44-a46c-40c1-8b8f-6c70aa83647d","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":224,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"19c21c17-d010-4442-8b15-281a019f23ca","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":224,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"5890f301-5e6b-47b0-8624-1e993b856045","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":224,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"6e45767c-aecf-4892-b690-8920be5d8b62","block_type":"box","text":"24","page_number":224,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"099c7782-b9df-49f9-bf8f-6b138faba5c7","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":224,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"3e94a416-f533-4504-a2f8-dfd16c07f4a8","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":224,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"2a08a2bb-4d95-436c-ae36-9ae9b3f7ba7f","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":224,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"578cda7d-eb49-4ddd-bc75-e61be9369e95","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":224,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"3eb27eb5-3af7-40d1-aabf-14072e75a82c","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":224,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"7975b5b9-769c-4a08-b03f-f5dce58ab458","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":224,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"d9c062b6-100f-42d0-895f-b01e67ed4419","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":224,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"d7c81f4e-9b6e-4643-961c-f981654421a9","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":224,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"d524db8d-c3c1-49df-8d64-cb123945e72f","block_type":"box","text":"transition plan and targets.","page_number":224,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"c49171fa-6dab-41fe-88fc-f2ad5495ee40","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":224,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"68f89629-c849-46d1-9e0d-5bf2e18b64e1","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":224,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"f97975c4-18bf-4d53-a35b-af74e445ac64","block_type":"box","text":"long as cer tain requirements are met. 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The dedicated team assesses the implications for, and the relevance to, the","page_number":224,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"9b7e04eb-4d0d-4345-9862-26a003daef37","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":224,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"433739a6-3ea5-4839-b345-e02abc59c864","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":224,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"e4f3e9b8-c39f-4552-bf6d-57e4efefcae8","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"0300af51-e00b-4600-8b67-907ef30d758e","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":224,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"d9f38ae0-d584-4aad-a06e-99765885c767","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":224,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"935404fe-f85a-467e-8909-193f97b95396","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"8f93add3-dfb9-4842-95fa-9d06492b67de","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":224,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"bb96aea4-62e2-4d00-b263-0d839e2a147d","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":224,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"e92adcdf-70fa-4177-a289-7561b83e6024","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"45f393d7-94ee-4d36-8084-3602d030a6f4","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":224,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"5e193dc3-cebf-443c-8124-2f883ed6b8cc","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"1ad1518e-dad7-4c9b-9cc6-c1288d9a9bff","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":224,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"49afd075-4163-48b9-ac53-c539d06204ad","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":224,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"81ceaff6-0271-41af-8505-8bd8bbd711b7","block_type":"box","text":"25","page_number":224,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"9f216d58-be2f-4f0d-9535-08ebde63d8df","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":224,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"a6dc7d76-b200-453f-80b8-8ee8a2804dc1","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":224,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"b7d900ae-644f-4505-b245-043f84362553","block_type":"box","text":"RELATED MATTERS","page_number":224,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"ece43de4-53b4-47f4-a5c6-03a2974da052","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":224,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"068f447b-5dd7-4016-9ed0-62d0e8aaa7bb","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":224,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"24418976-b07d-4554-bc91-17afa19aaf21","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":224,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"79c87a5a-7570-4649-a234-11ef4cac3e02","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":224,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"1d625b3f-6965-49f0-a1cb-def61ac573d0","block_type":"box","text":"Executive compensation","page_number":224,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"5015a91b-d300-4201-b330-0b1ceca806b9","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":224,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"da81673f-f32b-4470-8ece-73d0ad2aa9f7","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":224,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"1c07988c-67e8-406f-adc7-42cc9e0dc938","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":224,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"a91c71eb-e5de-4949-8318-50bedaa85448","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":224,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"5bffcb67-0a50-4397-94d4-5c0193e9e324","block_type":"box","text":"24","page_number":224,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"82119277-fb12-4b85-bec6-6f312a2a723d","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":224,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"3a46b63e-55b5-4bed-bad3-48f4a6d1b23d","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":224,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"6bcdec18-8500-4e03-89a5-02a1f5866cda","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":225,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"fe8f4893-931c-44bd-b64e-3bce4c6e21b5","block_type":"box","text":"strategy and risk management.","page_number":225,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"f08b43ba-c4cd-4b4c-aba4-8a6788a74b2b","block_type":"box","text":"Auditors and audit-related issues","page_number":225,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"e464da75-647b-4898-8b08-a81816856073","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":225,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"13967949-ca9e-45da-91d8-629896788575","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":225,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"f7fed4b2-9bd9-4033-b1e9-46d0842d0b78","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":225,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"52fcd4a4-e39a-411f-9df1-59ab228bcdab","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":225,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"06349215-8c29-44aa-a707-17e41608d0e7","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":225,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"02d48e8c-8723-4f45-a636-057807c6cece","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":225,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"95e86eaa-2820-4331-b890-cc84d349fb79","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":225,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"32d68e40-ba42-4935-a65c-f42ab3e1c5f9","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":225,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"4350bc8e-ef4f-417a-946b-0dff485bfb3c","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":225,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"a22becf4-2e2f-4d52-b30a-e20d7d0298fe","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":225,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"e9f3dca4-cb6f-4bfc-aeb4-5a69bd20fac7","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":225,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"5e817127-ff91-431d-8a5f-b7543ea60ead","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":225,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"cb8adb27-9b87-433b-9055-e7b5f10466fb","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":225,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"7587cce4-a0bd-492c-a489-6bff767d931e","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":225,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"be92251c-9eda-4606-8992-000ece8b7cd6","block_type":"box","text":"stakeholders.","page_number":225,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"78e9c63b-0b1d-42db-88be-a5727658dde5","block_type":"box","text":"26","page_number":225,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"8621c592-ba2f-44fb-befc-23abfd5e8716","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":225,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"61678e91-d89b-4bf3-9a94-a25713943610","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":225,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"7253136b-32fc-4c0a-ba1a-5af0adc64f8b","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":225,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"a4be8c12-98c7-4898-afdc-3d8b2fa5f164","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":225,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"89bc3d12-6c9c-488c-981f-c6fad7b00793","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":225,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"494b57a4-ef1e-4cba-8041-1e1f55b1ee8e","block_type":"box","text":"26","page_number":225,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"125cb68f-352d-45ff-8bb9-7ad718bd9e3c","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":225,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"ea2cdf3d-db56-4259-b297-3afe2a0b3feb","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":225,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"1038a5e7-5d61-412b-9765-56c511e84d36","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cf973471-9076-46d2-a4fc-4dee0a3d3b95","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":225,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"8c4cd45b-8197-40e5-8185-01587262fa13","block_type":"box","text":"NM1026U-5978647-225/232","page_number":225,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7ccd90f3-9131-4403-9309-052f2afa371e","block_type":"box","text":"Appendix 1","page_number":226,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"4c679fd7-4a0f-4d2e-8ff9-d47d37673a8b","block_type":"box","text":"Terminology","page_number":226,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"5ebefaf1-bdcf-461a-b9e4-ae997b3b0b24","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":226,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"1f5ef64a-9be0-4abe-aeae-71757ab963d1","block_type":"box","text":"Climate risk:","page_number":226,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"566fe943-6458-4e98-8fb5-83fbed4bd3e5","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":226,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"0f431aa6-7a6f-41b2-8c88-75ad186333bf","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":226,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"e276ee1f-a01b-401c-b826-e5c08cadd977","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":226,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"a62d4629-c902-4973-951b-7ee39512c956","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":226,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"2ad60fc0-e455-4f77-8912-e9f94f7c3887","block_type":"box","text":"The global economic shift toward lower","page_number":226,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"2459ab0c-b255-432d-8161-c29936bfb35e","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":226,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"43a60654-f4f6-4301-aef0-361545ebc11b","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":226,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"35f8e72d-2fa7-4025-9141-adc06f01fd94","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":226,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"ca5f92f4-c0fa-4cd7-bcc9-c5d86f11b871","block_type":"box","text":"Decarbonization:","page_number":226,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"9d3088e9-64b0-43e0-8a4c-ebf2f55564d4","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":226,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"95cc1b09-7f3a-457a-955d-c770ffca9ad3","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":226,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"3f5aa18e-b39b-4bb8-bffa-80234bd4fdc2","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":226,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"4eb36621-0994-4054-96cb-777b9b0ce9d2","block_type":"box","text":"e.g., methane.","page_number":226,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"b27551b8-afa7-4554-9995-0008deee17bd","block_type":"box","text":"Climate-related risks and opportunities:","page_number":226,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"2fb2951e-beb3-45e7-92de-ca54c38bcc1e","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":226,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"a6ffca8d-4848-4ea1-af3f-419d72599422","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":226,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"3bbb90c7-49eb-417b-933a-af1f469dee92","block_type":"box","text":"to physical climate change.","page_number":226,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"aec2d1af-b092-43cc-85c4-ab8b625bd3ae","block_type":"box","text":"Climate-related transition plan:","page_number":226,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"aa218539-ed95-48c7-acde-4a7651ec62b3","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":226,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"f6baf40c-756c-49aa-a3bf-fad8dee4ae65","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":226,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"d256fe00-2f61-418c-8f20-c47919d40932","block_type":"box","text":"greenhouse gas emissions.”","page_number":226,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"f757de2e-9992-4c21-afc7-c407c3e291b3","block_type":"box","text":"27","page_number":226,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"405f20e5-6b18-4251-a84a-9269f456e875","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":226,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"78b719f8-a888-4938-a567-19b1a52ca1cb","block_type":"box","text":"Targets that “","page_number":226,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"af93a259-b72f-42e9-b3e2-6910a882c432","block_type":"box","text":"are in line with what the latest climate science","page_number":226,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"0891d5e5-1e4b-4887-be6e-32c3e7e85979","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":226,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"e14d2301-7e5b-4b7b-a3d1-3e796f071960","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":226,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"a4dbf6c4-bd40-4eeb-83f7-1653274af797","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":226,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"1d246c1e-4292-4f55-bb2a-a885269ccd25","block_type":"box","text":"with the Paris Agreement goals.”","page_number":226,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"14ecfcd4-ae4c-4b0f-b670-32416ab1481d","block_type":"box","text":"28","page_number":226,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"8e3b9f0c-b374-4458-b054-4517e072c853","block_type":"box","text":"Scope 1:","page_number":226,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"72797bdc-100c-44b3-b49c-3b2261fe0434","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":226,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"98978d3e-c089-4423-b100-d34b987ad81e","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":226,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"c0dd820a-3912-42d4-b78e-2200394288d5","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":226,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"9c9688d9-dddd-42a1-9c66-c48b5f425c9d","block_type":"box","text":"29","page_number":226,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"04ffa237-b620-4b41-83eb-2599fc6520dc","block_type":"box","text":"Scope 2","page_number":226,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"b2b00dda-7ff7-4959-8ab1-9d70379e488e","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":226,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"2830e01a-90f7-420c-86c8-5e1c2072c342","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":226,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"22ec0f54-4d79-4459-a163-71c7c163fb19","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":226,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"b02e1b63-877d-4d6d-a302-d30a7c8f9073","block_type":"box","text":"30","page_number":226,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"7de15f13-7247-406a-b310-580b7f85f435","block_type":"box","text":"Scope 3:","page_number":226,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"92b08087-170a-424b-9f4e-e3f45f9f936c","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":226,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"f81bda17-71a7-42be-94d0-a75ec329792e","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":226,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"8798aa77-34c2-4661-978a-da176d590d46","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":226,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"ec0736b9-9a39-448d-a16f-46d2079badaa","block_type":"box","text":"31","page_number":226,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"8f74e6c3-e378-4c08-b898-33e1dd96dee4","block_type":"box","text":"27","page_number":226,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"484015e3-20c6-40db-866d-351cd851e49b","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":226,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"f0d3f673-2464-4469-a98b-0199e81602a6","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":226,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"b2850b9c-b4f0-4fb8-9b5f-c9f2d47de54f","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":226,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"ec2e2898-4562-4670-b4af-495f0a40b02b","block_type":"box","text":"28","page_number":226,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"e28a03a6-c76d-46dc-b79c-35a9c427a999","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":226,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"f63b41fa-ab02-450c-809e-e545daa15106","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. We develop","page_number":226,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"df6796cd-4e09-4bff-a697-7f4ce88c14ce","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":226,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"b7357c35-47d3-42e5-8f2a-fd17dec6767e","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":226,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"8c1db6c6-3073-48d3-bb55-2c18c0553e44","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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