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Any change in the percentage of the","page_number":15,"box":{"x":70,"y":899,"width":821,"height":11}},{"id":"19a70513-d813-4d94-888d-d812e12cb650","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"96a19447-ae9c-42ac-beb1-91a4733c2b15","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25109999-dd40-4956-a84e-92bd78a6adb9","block_type":"box","text":"Fund’s assets invested in certain securities or other instruments resulting from market fluctuations or other changes","page_number":16,"box":{"x":70,"y":45,"width":833,"height":11}},{"id":"bdde5d83-5533-4b43-9283-b358576a1a68","block_type":"box","text":"in the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it is","page_number":16,"box":{"x":70,"y":60,"width":826,"height":11}},{"id":"823a7b93-5441-41bb-b65c-570ec8200588","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":16,"box":{"x":70,"y":75,"width":642,"height":11}},{"id":"9b532a50-d261-4952-b832-6f88f2921dc7","block_type":"box","text":"For purposes of fundamental investment restriction (2) above, with respect to the Fund’s industry classifications,","page_number":16,"box":{"x":102,"y":98,"width":805,"height":11}},{"id":"834f17de-3aa0-4da5-a559-618ea04b3213","block_type":"box","text":"the Fund currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized","page_number":16,"box":{"x":68,"y":113,"width":829,"height":11}},{"id":"412905e7-5925-4789-8652-586813faf3df","block_type":"box","text":"market indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to","page_number":16,"box":{"x":69,"y":128,"width":839,"height":11}},{"id":"e91e5e53-7af7-4be4-8c02-5740efc5cf38","block_type":"box","text":"give broad authority to the Fund as to how to classify issuers within or among industries.","page_number":16,"box":{"x":68,"y":143,"width":631,"height":11}},{"id":"8adf99f0-b769-4c64-9b90-2630f3405a93","block_type":"box","text":"In addition, as a non-fundamental policy that may be changed by the Directors and to the extent required by the","page_number":16,"box":{"x":102,"y":166,"width":793,"height":11}},{"id":"1aefbceb-016b-4469-aef4-59358bedb46d","block_type":"box","text":"Commission or its staff, the Fund will, for purposes of fundamental investment restriction (1), treat securities issued","page_number":16,"box":{"x":69,"y":181,"width":832,"height":11}},{"id":"8d9e3cee-251e-4bf9-b6b7-02aa70fadd07","block_type":"box","text":"or guaranteed by the government of any one foreign country as the obligations of a single issuer.","page_number":16,"box":{"x":69,"y":196,"width":689,"height":11}},{"id":"50bc41ca-5e02-4ae1-8618-d97cda4a7c11","block_type":"box","text":"III. Information on Directors and Officers","page_number":16,"box":{"x":69,"y":226,"width":294,"height":9}},{"id":"ff8d452b-e8f7-4aa4-aedb-0774af3fe108","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thirteen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":249,"width":790,"height":11}},{"id":"515668f5-c7c1-4979-a799-b1b7a6e41bfe","block_type":"box","text":"the Corporation as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":16,"box":{"x":68,"y":264,"width":828,"height":11}},{"id":"f4280f0f-a389-42d8-a7af-c1f9d54cc5d2","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":16,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"bdaad4b7-2624-4b72-9fbd-6244d82c82f5","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":16,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"646b453f-5295-45cf-87b3-72245cb2db2c","block_type":"box","text":"Complex”). The Corporation is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset","page_number":16,"box":{"x":69,"y":309,"width":799,"height":11}},{"id":"d8534465-9749-4868-a28e-bc869242ff93","block_type":"box","text":"Complex. The Directors also oversee as board members the operations of the other open-end registered investment","page_number":16,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"1cd3391d-8148-48b9-bb82-a8b1c673338c","block_type":"box","text":"companies included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":340,"width":418,"height":10}},{"id":"cee85bdb-c851-4025-ad9b-ce131473ce2c","block_type":"box","text":"The Board has overall responsibility for the oversight of the Corporation and the Fund. The Chair of the Board is","page_number":16,"box":{"x":101,"y":362,"width":794,"height":11}},{"id":"748c69e3-8078-4489-b04f-ae70a40caaa1","block_type":"box","text":"an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director.","page_number":16,"box":{"x":69,"y":377,"width":823,"height":11}},{"id":"d7b20db7-8915-43ac-b5a9-13f7938a75ce","block_type":"box","text":"The Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a","page_number":16,"box":{"x":68,"y":392,"width":766,"height":12}},{"id":"d1d60de0-fb17-4d60-9eac-a89d08ad801a","block_type":"box","text":"Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair","page_number":16,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"d7d7de9f-66c3-4b42-8d31-36057f434a46","block_type":"box","text":"of the Board is to preside at all meetings of the Board and to act as a liaison with service providers, officers,","page_number":16,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"f4d2ea46-df82-483f-9bc0-a9fa80a2ae72","block_type":"box","text":"attorneys and other Directors generally between meetings. The Chair of each Committee performs a similar role with","page_number":16,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"6eafb2a3-3c9d-4fec-a383-1bf4c1e92c4c","block_type":"box","text":"respect to the Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions","page_number":16,"box":{"x":69,"y":453,"width":836,"height":11}},{"id":"5eeccec9-4fd7-4777-afcf-05c3283edfe4","block_type":"box","text":"as may be delegated by the Board or the Committee from time to time. The Independent Directors meet regularly","page_number":16,"box":{"x":69,"y":468,"width":805,"height":11}},{"id":"1a74594c-0635-442f-a3d1-f7a9fdcc99de","block_type":"box","text":"outside the presence of Fund management, in executive session or with other service providers to the Fund. The","page_number":16,"box":{"x":69,"y":483,"width":802,"height":11}},{"id":"2fdd7273-83aa-486c-8d10-cf747fe2a22b","block_type":"box","text":"Board has regular meetings five times a year, and may hold special meetings if required before its next regular","page_number":16,"box":{"x":70,"y":498,"width":788,"height":11}},{"id":"7680fec5-80b5-4482-8f27-172a62c0b9c0","block_type":"box","text":"meeting. Each Committee meets regularly to conduct the oversight functions delegated to that Committee by the","page_number":16,"box":{"x":69,"y":513,"width":802,"height":12}},{"id":"cd72e92f-9742-4b92-bafd-e9cc8e7d5340","block_type":"box","text":"Board and reports its findings to the Board. The Board and each standing Committee conduct annual assessments","page_number":16,"box":{"x":70,"y":528,"width":821,"height":12}},{"id":"8598eaed-57c8-40f2-a67d-64b410b6ac30","block_type":"box","text":"of their oversight function and structure. The Board has determined that the Board’s leadership structure is","page_number":16,"box":{"x":69,"y":543,"width":767,"height":12}},{"id":"ded20158-3f6d-41ec-9e20-9caaaee65c33","block_type":"box","text":"appropriate because it allows the Board to exercise independent judgment over management and to allocate areas of","page_number":16,"box":{"x":69,"y":559,"width":839,"height":11}},{"id":"9b7020b4-9d3f-4fc3-a4c7-3bd3e47215e9","block_type":"box","text":"responsibility among Committees and the full Board to enhance effective oversight.","page_number":16,"box":{"x":69,"y":574,"width":593,"height":11}},{"id":"92e662a6-41f2-4d9f-8106-3165aabd8bac","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":16,"box":{"x":101,"y":596,"width":777,"height":12}},{"id":"7562d513-7fc9-46ec-9044-b83a49c376ee","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":16,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"88be4a92-7648-48b7-b412-3f6c8bf4ac77","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Corporation’s charter, and the","page_number":16,"box":{"x":68,"y":627,"width":815,"height":11}},{"id":"ee2e6c8e-60f5-4cc7-a56e-308c9beeadf6","block_type":"box","text":"Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance,","page_number":16,"box":{"x":70,"y":642,"width":784,"height":11}},{"id":"d15d0912-d0ad-4b29-a98c-6c7eb4c8fd60","block_type":"box","text":"operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role","page_number":16,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"fc4f9866-edcc-4e5c-a1d1-afb9de220372","block_type":"box","text":"in running the operations of the Fund.","page_number":16,"box":{"x":70,"y":672,"width":266,"height":11}},{"id":"6ab4414a-3320-45f0-b894-da44b2d58600","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":16,"box":{"x":102,"y":695,"width":785,"height":11}},{"id":"86c7bd97-044c-4c16-b586-0d3b35115e12","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":16,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"9ab54a18-0667-4f61-85db-2183df892ac8","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":16,"box":{"x":69,"y":725,"width":832,"height":11}},{"id":"64c3a150-72c2-4641-95b9-752556e5b8a6","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":16,"box":{"x":68,"y":740,"width":820,"height":11}},{"id":"3e261d87-2adf-4792-aed1-18eca5affd26","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":16,"box":{"x":70,"y":755,"width":811,"height":11}},{"id":"4f3f15f1-99b3-4bb2-846a-483b178c96fd","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":16,"box":{"x":70,"y":770,"width":767,"height":12}},{"id":"dd579914-bb2b-4ba9-84bf-d8b941c1b627","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":16,"box":{"x":69,"y":785,"width":815,"height":12}},{"id":"8baa4060-1d0b-41e2-8724-fbc544cb54e7","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":16,"box":{"x":70,"y":801,"width":803,"height":11}},{"id":"96443834-d3ad-4bbb-8bad-ce546d2cb0ed","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":16,"box":{"x":69,"y":816,"width":840,"height":11}},{"id":"e6ab0610-e4d7-4e58-80e7-237173ef790b","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":16,"box":{"x":69,"y":831,"width":814,"height":11}},{"id":"085a5b7a-8074-436b-8069-89ca19cb29d6","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":16,"box":{"x":69,"y":846,"width":817,"height":11}},{"id":"9711aa7e-6ec0-4d6f-95a0-7ada24a6fe8c","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":16,"box":{"x":69,"y":861,"width":812,"height":11}},{"id":"34b0a516-4a01-4e21-93a8-9220fee96c72","block_type":"box","text":"testing of the Corporation’s compliance program and reports to the Board regarding compliance matters for the Fund","page_number":16,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"fd893986-a6cf-4d20-885e-b0dff1f94d1a","block_type":"box","text":"and its service providers. The Independent Directors have engaged independent legal counsel to assist them in","page_number":16,"box":{"x":69,"y":891,"width":794,"height":12}},{"id":"ce3c5148-d87c-40fe-910f-d8c9a1866ebe","block_type":"box","text":"performing their oversight responsibilities.","page_number":16,"box":{"x":70,"y":906,"width":299,"height":12}},{"id":"e6e831b8-3028-4f89-ae37-8624eb0d5be5","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"df64d6c9-5546-4964-8176-2ea90ef71b64","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72f70fd3-16e8-4a59-8e83-dc21407b2a27","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":45,"width":122,"height":9}},{"id":"f7ab7aa5-c347-4253-82d7-561e0326823f","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":45,"width":673,"height":11}},{"id":"437cae3d-8f3f-4222-aff1-21b8f9661f43","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":17,"box":{"x":68,"y":60,"width":834,"height":11}},{"id":"380dae42-fe81-4c61-85e3-d85d3ebce2bc","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":75,"width":820,"height":11}},{"id":"3d1569e4-ad4c-47b1-ada1-01113dcd06f2","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":17,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"99f58fc6-e0dd-4947-b8cb-dd0ea4e1d0cf","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":105,"width":830,"height":11}},{"id":"b3c39ddd-124e-44d7-bb3c-28c13cbd8bd6","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":17,"box":{"x":70,"y":120,"width":825,"height":11}},{"id":"1d90a09c-8d83-41a8-ae9a-b0e1917f2a60","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":17,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"6516bd56-49eb-4816-8824-cf272988d50c","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":17,"box":{"x":68,"y":150,"width":781,"height":11}},{"id":"b0f452e8-796c-4256-ad38-95e4275e1c5e","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":17,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"d0648118-ce39-4bec-8780-2aeb2d169cd0","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":17,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"642d8c8b-b12f-4fe5-86cc-67da3d0df51b","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"243084bb-e1c4-4437-968f-2efe6786a73b","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":17,"box":{"x":70,"y":211,"width":809,"height":11}},{"id":"9ad3c240-917f-4cc7-ae63-6d252c08978c","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":226,"width":815,"height":11}},{"id":"72378328-61a9-476e-a012-cdecca1406f3","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":17,"box":{"x":69,"y":241,"width":774,"height":11}},{"id":"d274e262-033d-4c4f-9683-ea5e68d2a73a","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":17,"box":{"x":69,"y":256,"width":815,"height":12}},{"id":"f83f018b-fefb-4ab8-bc70-40a408eb82ab","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":271,"width":819,"height":12}},{"id":"ea8251f6-fa42-4326-9b18-4e1b7d599d78","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":17,"box":{"x":69,"y":286,"width":812,"height":12}},{"id":"196f878f-94d7-450c-b812-5738dfed212c","block_type":"box","text":"During the twelve months ended May 31, 2026, the Audit Committee met four times.","page_number":17,"box":{"x":70,"y":302,"width":605,"height":11}},{"id":"c262aec5-ceb5-43a8-aa35-6b84ee9dbc33","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":324,"width":286,"height":12}},{"id":"733ef740-77a7-48d1-bf30-9bcc2ca07d4e","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":324,"width":464,"height":12}},{"id":"09bad281-f064-40a1-aaae-f11197a1fd99","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":17,"box":{"x":70,"y":340,"width":838,"height":11}},{"id":"99f0f84b-6d84-48ca-83c4-208fd54ee9a8","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":17,"box":{"x":70,"y":355,"width":786,"height":11}},{"id":"f3a8b12c-d93b-4847-87a1-8ed462ec3a68","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Corporation","page_number":17,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"b7933f14-da52-4189-a99a-cf186a85858c","block_type":"box","text":"and recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise","page_number":17,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"3fb0c443-6e7b-40f0-b78c-559271907bd1","block_type":"box","text":"the Board with respect to Board composition, procedures and committees (other than the Audit Committee);","page_number":17,"box":{"x":68,"y":400,"width":772,"height":11}},{"id":"131913b3-6a31-4ef8-a4c7-cdad39d3410c","block_type":"box","text":"(3) oversee periodic self-assessments of the Board and committees of the Board (other than the Audit Committee);","page_number":17,"box":{"x":69,"y":415,"width":820,"height":11}},{"id":"a7acf56f-3caa-4d9b-aafd-d575f4b6eb16","block_type":"box","text":"(4) review and make recommendations regarding Independent Director compensation; (5) monitor corporate","page_number":17,"box":{"x":69,"y":430,"width":768,"height":11}},{"id":"259940ec-6b75-4761-a3f0-d17085582516","block_type":"box","text":"governance matters and develop appropriate recommendations to the Board; (6) act as the administrative committee","page_number":17,"box":{"x":68,"y":445,"width":837,"height":12}},{"id":"0edacf2f-da2e-42fc-b650-928ed4667dbe","block_type":"box","text":"with respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee)","page_number":17,"box":{"x":68,"y":460,"width":827,"height":11}},{"id":"1710e850-9c2e-4f98-a351-f23fb3365b08","block_type":"box","text":"and codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities","page_number":17,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"9f75451a-6023-4817-8c8b-51106d749348","block_type":"box","text":"as may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":17,"box":{"x":69,"y":491,"width":831,"height":11}},{"id":"7604d0dc-255c-4a73-9c60-758d9243356a","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the","page_number":17,"box":{"x":69,"y":506,"width":744,"height":11}},{"id":"7f5484d7-4542-410c-82dc-9f7e8aa15fb0","block_type":"box","text":"Corporation’s Amended and Restated Bylaws (”Bylaws“), shareholders must follow certain procedures to nominate a","page_number":17,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"85d107da-df61-491f-b501-40a6d8ed0bab","block_type":"box","text":"person for election as a Director at a shareholder meeting at which Directors are to be elected. Under these advance","page_number":17,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"c4cce4c6-587e-41df-a6eb-94e53ffb8113","block_type":"box","text":"notice procedures, notice of the proposed nominee to the Secretary of the Corporation must be delivered to or","page_number":17,"box":{"x":69,"y":551,"width":789,"height":11}},{"id":"78cf35c1-82b9-44c6-9d43-c185507aaff5","block_type":"box","text":"mailed and received at the principal executive offices of the Corporation not later than the close of business on the","page_number":17,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"1ce1eac0-9af2-4613-b252-14b3bb10d390","block_type":"box","text":"fifth day following the day on which notice of the date of the meeting was mailed or public disclosure of the date of","page_number":17,"box":{"x":68,"y":581,"width":819,"height":12}},{"id":"b955a985-f2e9-4db3-84fc-d3c3b6e911a5","block_type":"box","text":"the meeting was made, whichever first occurs. The Corporation’s Bylaws provide that notice of a proposed","page_number":17,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"1dd3e8e2-d92a-484e-82b8-5a2479effa7e","block_type":"box","text":"nomination must include certain information about the shareholder and the nominee, as well as certain other","page_number":17,"box":{"x":69,"y":612,"width":782,"height":10}},{"id":"218b9173-debd-45cc-8640-2ecb6ae028bd","block_type":"box","text":"information, including a written consent of the proposed nominee to serve if elected. Reference is made to the","page_number":17,"box":{"x":70,"y":627,"width":789,"height":11}},{"id":"0cedbafd-e72f-4092-bc75-9e1b4dfc9abb","block_type":"box","text":"Corporation’s Bylaws for more details. The Board has adopted a written charter for the Governance Committee.","page_number":17,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"b3e575ec-857e-4afd-8a5c-e0479fe5d7bd","block_type":"box","text":"During the twelve months ended May 31, 2026, the Governance Committee met ten times.","page_number":17,"box":{"x":70,"y":657,"width":648,"height":11}},{"id":"cae191ef-376a-4bb1-9087-55f7c255cbe8","block_type":"box","text":"Compliance Committee.","page_number":17,"box":{"x":102,"y":680,"width":168,"height":11}},{"id":"37a865d1-d360-4a66-9a2d-9375982db455","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":17,"box":{"x":276,"y":680,"width":629,"height":11}},{"id":"14e56706-6d6f-44da-a782-ce95f6747a28","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":17,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"e47906eb-6f8a-42e2-b0db-e21b98557b20","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":17,"box":{"x":68,"y":710,"width":773,"height":11}},{"id":"7e883352-eea8-4cf1-a121-2a4e34b2cafa","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Corporation, the fund-related","page_number":17,"box":{"x":69,"y":725,"width":794,"height":11}},{"id":"7912cfc4-7d34-45e1-8dca-5606117b14cb","block_type":"box","text":"activities of BlackRock and any sub-adviser and the Corporation’s third-party service providers. The Compliance","page_number":17,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"3e06665f-8edc-46e7-8d57-b3a7944aeb4b","block_type":"box","text":"Committee’s responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the","page_number":17,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"319b387d-4854-4aa5-8579-cf4eacb99d9a","block_type":"box","text":"Corporation and its service providers and recommend changes or additions to such policies and procedures;","page_number":17,"box":{"x":69,"y":770,"width":773,"height":12}},{"id":"8a85d02c-e552-4a52-9d71-a0ddaa32476e","block_type":"box","text":"(2) review information on and, where appropriate, recommend policies concerning the Corporation’s compliance with","page_number":17,"box":{"x":69,"y":785,"width":829,"height":12}},{"id":"e3e5071f-e9a2-47b7-b8bd-35036c57c28b","block_type":"box","text":"applicable law; (3) review reports from, oversee the annual performance review of, and make certain","page_number":17,"box":{"x":69,"y":801,"width":719,"height":11}},{"id":"27ea4c4a-e813-41ed-8cf7-f074fae73f63","block_type":"box","text":"recommendations and determinations regarding the Corporation’s Chief Compliance Officer (the “CCO”), including","page_number":17,"box":{"x":69,"y":816,"width":814,"height":11}},{"id":"1b494845-042a-43ad-983c-f58312e12ff6","block_type":"box","text":"determining the amount and structure of the CCO’s compensation and recommending such amount and structure to","page_number":17,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"3a3712af-4789-4ee2-8a27-2a79eb4fa520","block_type":"box","text":"the full Board for approval and ratification; and (4) undertake such other duties and responsibilities as may from time","page_number":17,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"0d08a6ee-7b39-43f4-bc53-5156a796fba8","block_type":"box","text":"to time be delegated by the Board to the Compliance Committee. The Board has adopted a written charter for the","page_number":17,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"18f928b4-6456-425c-9955-421dc0581ade","block_type":"box","text":"Compliance Committee. During the twelve months ended May 31, 2026, the Compliance Committee met four times.","page_number":17,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"57ad20ac-61d9-48d1-9401-369b5568a66b","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"b1f387c0-8af9-40b7-94e1-2fbad6e93730","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b9ed1552-d771-4b51-bc78-fe52d449492d","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":45,"width":248,"height":11}},{"id":"4def985a-d670-4d44-90b5-8b00f9fcd0e2","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":18,"box":{"x":356,"y":45,"width":531,"height":11}},{"id":"9986c42f-1327-4128-92f6-623ff7cebae4","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"9c03a8cd-528a-42b8-bdf7-f74deaa32147","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"7143bdbb-23df-457a-92d6-f993ece2f2fc","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":18,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"fb8fa9d1-9e77-4dd1-bf24-b406ad7b1aed","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"e5b72c89-404b-4d5e-a54a-f8336c5780f2","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":120,"width":782,"height":12}},{"id":"02639020-30a9-4342-836d-4ff3ea6deece","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":18,"box":{"x":70,"y":135,"width":829,"height":11}},{"id":"939670db-6f6d-46bc-ab82-fdfeb0480a58","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":150,"width":816,"height":11}},{"id":"1f3bf9a7-f976-46db-9091-5f29a2d961af","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":18,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"67bf3600-228e-48b2-abcd-b9353bf5a0c9","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":18,"box":{"x":69,"y":181,"width":827,"height":11}},{"id":"6333d90b-489b-45ba-ad40-59279c50af92","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":196,"width":811,"height":11}},{"id":"2539d978-ff82-46d3-9967-90bc3467bda8","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":18,"box":{"x":69,"y":211,"width":757,"height":11}},{"id":"48e88d0f-df92-4d70-bf6e-a231833b05a9","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":18,"box":{"x":70,"y":226,"width":835,"height":11}},{"id":"091d96fe-512a-404f-a050-5517e5025c52","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":18,"box":{"x":68,"y":241,"width":800,"height":11}},{"id":"3fe0d78d-73c9-4d91-be53-67604bcef737","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":18,"box":{"x":69,"y":256,"width":780,"height":12}},{"id":"0abd24c5-591e-4e9b-ab39-0a5cc30202cb","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the twelve","page_number":18,"box":{"x":69,"y":271,"width":810,"height":12}},{"id":"3b85eb38-b096-4376-94c1-9f05f54b8d3b","block_type":"box","text":"months ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":286,"width":602,"height":12}},{"id":"d2b850d5-3f27-4997-b288-7ae7b68db983","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":309,"width":186,"height":11}},{"id":"23d1ecf0-b676-4084-9bd9-1f135933815e","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":18,"box":{"x":293,"y":309,"width":598,"height":11}},{"id":"34d84493-e89b-49a1-bc80-f02629204567","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":324,"width":819,"height":11}},{"id":"e15223ab-f764-47d4-915a-3de1d9686395","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":18,"box":{"x":69,"y":339,"width":796,"height":11}},{"id":"c2a9e30a-59af-450e-8eb8-d56498079c75","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":18,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"2e25a3b9-71b8-4073-8909-36b630282c0e","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":18,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"5f25a514-5eda-42c2-b91e-e3b2971ca40c","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":18,"box":{"x":68,"y":385,"width":816,"height":11}},{"id":"b28b89a9-7bf9-4f2b-b3dd-5949cadf1af2","block_type":"box","text":"the twelve months ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":18,"box":{"x":68,"y":400,"width":606,"height":11}},{"id":"c49e7173-616f-421e-955d-9409f8f5a591","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":18,"box":{"x":101,"y":423,"width":771,"height":11}},{"id":"6fc7c12a-2db1-460f-8b7a-a3c7f8f7b5c1","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":18,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"1db92642-5681-4fc2-bf52-129213f47f04","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":18,"box":{"x":69,"y":453,"width":833,"height":11}},{"id":"a88cf51a-6508-4b10-a37e-ac7f9d8067b8","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":18,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"98d0750e-5f5d-4c17-b9a4-1e9a11f9f01b","block_type":"box","text":"in determining that a particular Independent Director was and continues to be qualified to serve as a Director, the","page_number":18,"box":{"x":70,"y":483,"width":811,"height":11}},{"id":"3447ca38-20ce-445a-b9f0-829260452482","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":18,"box":{"x":70,"y":498,"width":787,"height":11}},{"id":"1bf1ae19-7131-4f67-95c0-80de0f15aa59","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":18,"box":{"x":69,"y":513,"width":807,"height":11}},{"id":"babb2bb3-2f6e-496e-8b7d-692519be3787","block_type":"box","text":"which allow the Board to operate effectively in governing the Corporation and protecting the interests of shareholders.","page_number":18,"box":{"x":68,"y":528,"width":840,"height":12}},{"id":"9540b912-abb0-4494-83c6-180f5acd71b9","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":18,"box":{"x":68,"y":544,"width":832,"height":11}},{"id":"10cdade3-b99e-4517-b1d9-e52b46d85e92","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":18,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"1e0dec03-6c83-4e69-bd2f-75f9676b4cb3","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":18,"box":{"x":69,"y":574,"width":771,"height":11}},{"id":"62b17a43-493c-4b72-8d1e-3f1fb3f85e80","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":18,"box":{"x":69,"y":589,"width":475,"height":11}},{"id":"0a4fe132-5cda-42f7-b268-09cb2305f815","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":18,"box":{"x":102,"y":612,"width":794,"height":11}},{"id":"fbc06ff0-3db2-4b49-9940-7faaa5abe448","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":18,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"2155c226-c768-4316-98bd-adaf88316ae7","block_type":"box","text":"board member of the Corporation and the other funds in the BlackRock Fund Complexes (and any predecessor","page_number":18,"box":{"x":69,"y":642,"width":787,"height":11}},{"id":"c77a7402-96ee-42f0-88f1-698ed69c5c98","block_type":"box","text":"funds), other investment funds, public companies, non-profit entities or other organizations; ongoing commitment to","page_number":18,"box":{"x":68,"y":657,"width":827,"height":11}},{"id":"bbbcffa2-d110-4c7f-a285-1a19c1bd2849","block_type":"box","text":"and participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":18,"box":{"x":69,"y":672,"width":717,"height":11}},{"id":"5fc0e6d2-da5b-46bd-8b4f-98591ebf16db","block_type":"box","text":"ad hoc","page_number":18,"box":{"x":793,"y":672,"width":47,"height":9}},{"id":"d652a77c-58d2-4019-9c16-2174fdc1cf00","block_type":"box","text":"committees throughout the years; or other relevant life experiences.","page_number":18,"box":{"x":69,"y":687,"width":483,"height":11}},{"id":"b861933e-ba74-4d58-89e5-f6fb692c5938","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"de52e747-0a47-40d4-a983-1a4a4df036d5","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc2892ab-e40a-40f7-80ea-27042c59b595","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":19,"box":{"x":101,"y":45,"width":754,"height":11}},{"id":"90f07eec-4af6-4204-b70e-169b5955470e","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":19,"box":{"x":69,"y":60,"width":494,"height":11}},{"id":"c9c5e760-e733-4e12-9207-fdca5fc52db2","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":19,"box":{"x":69,"y":88,"width":408,"height":9}},{"id":"0c8f0c5c-943f-4484-bc28-3fd4302e8bc1","block_type":"box","text":"Independent Directors","page_number":19,"box":{"x":70,"y":105,"width":156,"height":10}},{"id":"d6cf1615-f1b6-4e21-a8c5-64672dd39fc0","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":120,"width":781,"height":11}},{"id":"0c5c1651-5dfd-4c61-b4fd-93f872cd4295","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"6911f92f-4ffa-412b-958e-299ae24cef0f","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":150,"width":623,"height":11}},{"id":"41908fd6-f336-486b-a514-21257f0d7e11","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":19,"box":{"x":265,"y":165,"width":637,"height":11}},{"id":"1801b878-3bc9-4e94-920b-b3d7d5e89c73","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":19,"box":{"x":265,"y":180,"width":631,"height":11}},{"id":"5b772d96-42cc-4804-9bc1-661dfbfedae5","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":19,"box":{"x":264,"y":195,"width":626,"height":11}},{"id":"6eb9bb3c-7f82-4bcb-8f38-534cb8725d58","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":19,"box":{"x":265,"y":210,"width":639,"height":11}},{"id":"a83b7d39-2900-4493-9f76-46dfef06529f","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"9b80e37a-7e6b-4873-a9b1-b56a4e2708d6","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"d467b653-ae66-4024-9b9c-17beca360567","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":256,"width":640,"height":11}},{"id":"db158619-62bd-4ec8-a76e-b22241920939","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":19,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"0e8de212-ca71-4db2-83f4-22f311ed2019","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":19,"box":{"x":69,"y":293,"width":806,"height":12}},{"id":"15374b45-f23d-4f3c-ba44-b7b9ceb73dcd","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"c160f3c5-25b0-48fb-8af6-a1a0de3b59ee","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"222b3f99-dd40-4024-981e-613299eade3e","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":19,"box":{"x":265,"y":339,"width":562,"height":9}},{"id":"97665ba6-f692-48ff-9a3e-16dadcd5eadb","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"a03d6fee-581e-427c-8452-32f57ec3f660","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"7a7737ea-f284-4c92-a0bf-351f9b736640","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":19,"box":{"x":265,"y":384,"width":641,"height":11}},{"id":"0192344e-75cd-484f-83e7-12dd9830be3d","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":19,"box":{"x":264,"y":399,"width":638,"height":12}},{"id":"2b73e300-fdb3-420f-9217-6ef111bcb86d","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":19,"box":{"x":265,"y":414,"width":584,"height":12}},{"id":"f26ddcae-3a38-4ec6-b439-7f7e9f26999e","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"6e56e5c5-f464-4421-b537-49d62a29c1f5","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"7414e41d-2d9c-45f9-ae5e-49795b6a49b2","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"03ac07eb-0322-4a39-89e5-b17c68150a04","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"b833b06a-24df-4abe-80ed-8275d6d63eb5","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":19,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"a1443cb5-0b6d-4bf4-afac-b57dae13610f","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":19,"box":{"x":265,"y":513,"width":638,"height":11}},{"id":"6edb11fc-1927-45de-b810-c26c8490aa4b","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":19,"box":{"x":265,"y":528,"width":642,"height":11}},{"id":"da48b726-105b-4054-ab6c-11c8fc406a3f","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":19,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"bf2a6f45-36c3-4e7d-a7c8-09f036bb781b","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":19,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"f9224194-71f1-45a9-93b5-08cc145e4d42","block_type":"box","text":"perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"35075311-6f79-4b8e-a6bf-13302453933f","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":19,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"ea14a698-ef35-47d6-aa44-63e742b640fc","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":19,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"3dd43a42-0cc4-44e5-8a8f-fbebfbffeb4f","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":19,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"1fac548f-1777-4b6f-be8f-5bfd6226364d","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":19,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"565c1703-265e-45a4-a1d1-9ab7f562f555","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":19,"box":{"x":265,"y":656,"width":596,"height":12}},{"id":"92fedef2-4fa5-4296-a936-fb3629aa740a","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":19,"box":{"x":265,"y":671,"width":616,"height":12}},{"id":"a61694ec-8351-4925-ae7b-2a02f40865bf","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":19,"box":{"x":264,"y":686,"width":368,"height":11}},{"id":"25fe1da5-faa1-4d63-8043-d437bf443af9","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":19,"box":{"x":69,"y":709,"width":777,"height":11}},{"id":"27381ddd-6ce6-4faf-aa5d-cfc806da5157","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":19,"box":{"x":265,"y":724,"width":613,"height":12}},{"id":"b2008244-6b4a-4a14-a02c-b3fdb6883069","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":19,"box":{"x":265,"y":739,"width":563,"height":12}},{"id":"9dc9b822-dd35-429c-a2d1-b8cdf1172dcd","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":19,"box":{"x":265,"y":755,"width":607,"height":11}},{"id":"9b387bc5-b913-4c29-8e8a-7d9067f27735","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":19,"box":{"x":265,"y":770,"width":638,"height":11}},{"id":"7f2c4d52-2830-44f5-99a3-1004450542b7","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":19,"box":{"x":265,"y":785,"width":626,"height":11}},{"id":"867408b9-cefa-4294-a9f7-3ee532652f36","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":19,"box":{"x":265,"y":800,"width":563,"height":11}},{"id":"1532d524-8666-4b23-9ed2-a941fa4c2b20","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Directors prior to becoming an","page_number":19,"box":{"x":265,"y":815,"width":627,"height":11}},{"id":"15c3399b-0e58-419f-980f-6a1e725be4c2","block_type":"box","text":"Independent Director. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":19,"box":{"x":265,"y":830,"width":627,"height":11}},{"id":"c01bcd26-3bce-4bdf-bcdd-1dcad268ec1b","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":19,"box":{"x":265,"y":845,"width":623,"height":11}},{"id":"5bff3f5e-dae5-4901-a9d2-aa810aada17c","block_type":"box","text":"rules.","page_number":19,"box":{"x":265,"y":861,"width":38,"height":8}},{"id":"82aadfa8-97a2-4da9-a228-dfc7de505f3d","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5ae1a704-d529-439e-94c7-857f08c09a08","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7349ac77-42d9-4717-87e4-cb2b1fc4873a","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":20,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"98f3c52a-216e-4d48-a0cc-495cf38009f8","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":20,"box":{"x":70,"y":65,"width":806,"height":12}},{"id":"fb2e67c6-53da-4770-8e73-41c6c9143b37","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":81,"width":584,"height":11}},{"id":"57c1388c-4aba-4082-927f-2bb19c47790c","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":20,"box":{"x":265,"y":96,"width":622,"height":11}},{"id":"fc5e91c2-9201-4a8e-b345-b48a08d17da0","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":20,"box":{"x":265,"y":111,"width":638,"height":11}},{"id":"6b2dfa84-b4ad-4c0f-ad1c-52e1d6723e6b","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":20,"box":{"x":265,"y":126,"width":570,"height":11}},{"id":"5f887efc-16a4-4b59-a13f-e72636398762","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":141,"width":642,"height":11}},{"id":"62de01dd-d8ad-4e96-94ff-4198b6d5b660","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":156,"width":626,"height":11}},{"id":"d21131ff-90da-4a43-9fc1-b984df061e4d","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":171,"width":630,"height":12}},{"id":"cefee05d-5e13-4ffc-a10d-92e1268f2b92","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":186,"width":602,"height":12}},{"id":"f7785432-fc32-4442-bbf1-080899186300","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"45cbdb8c-e59d-41b4-811c-b7f38bb18a79","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":217,"width":639,"height":11}},{"id":"12cc2a34-589f-44cb-a711-aba6f7345b2e","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":20,"box":{"x":264,"y":232,"width":641,"height":11}},{"id":"c8ded762-b8bd-4469-ba8a-ebc4393167aa","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":247,"width":208,"height":11}},{"id":"d4fce789-2246-4568-a8b8-212133e96315","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":20,"box":{"x":69,"y":269,"width":769,"height":12}},{"id":"e546fc2c-0385-4c2e-bd3e-106f58105e17","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":20,"box":{"x":265,"y":285,"width":621,"height":11}},{"id":"e6c3c073-d128-4fe8-a602-6e25449f0fbd","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":300,"width":599,"height":11}},{"id":"0bc164e5-2c26-429a-8266-0a524c8e7f8c","block_type":"box","text":"Managers, L.P. (”MLIM“) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":20,"box":{"x":265,"y":315,"width":641,"height":11}},{"id":"f8f4c222-684d-4ea0-b28a-6bfc4efb45cf","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":330,"width":602,"height":11}},{"id":"90d13e24-ad7b-4a90-a0df-86dae7f793c9","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":345,"width":617,"height":11}},{"id":"9b925959-5574-4a47-8bd7-ae82931e0daf","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":360,"width":629,"height":12}},{"id":"e028e59a-0ea1-44ab-bbb8-50e261363c1f","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":20,"box":{"x":264,"y":375,"width":628,"height":11}},{"id":"37658d50-f818-4b41-9978-91e47f55512a","block_type":"box","text":"articles and books on these topics.","page_number":20,"box":{"x":265,"y":391,"width":251,"height":10}},{"id":"75170209-c9d3-4405-b9a3-306393cbeff0","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":20,"box":{"x":70,"y":413,"width":764,"height":11}},{"id":"02ba8ff8-3a4f-464f-a990-3b51ae490f76","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"852b33ab-e3ec-4a44-8012-06ba5228ce22","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":20,"box":{"x":264,"y":443,"width":593,"height":12}},{"id":"a86a83a5-6387-4b10-98ad-94a2bde696c6","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":20,"box":{"x":265,"y":458,"width":603,"height":12}},{"id":"3ffc3a7c-4ec2-4496-a552-c639ec2d97e8","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":474,"width":629,"height":11}},{"id":"8da51003-350f-400e-b66b-998196069b79","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":496,"width":804,"height":11}},{"id":"3cb96df6-8165-4309-9b33-cf7dbd89cf4a","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":20,"box":{"x":265,"y":511,"width":552,"height":12}},{"id":"bb370106-0bbe-4999-b17f-d021ba2f9cbd","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":20,"box":{"x":265,"y":526,"width":636,"height":12}},{"id":"e9236e1d-dbcd-45f5-9c25-e046bc6057e1","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":20,"box":{"x":265,"y":542,"width":639,"height":11}},{"id":"8b92aa82-6ada-48e6-a2b0-758253e44111","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":20,"box":{"x":265,"y":557,"width":576,"height":11}},{"id":"b23316c6-52cf-4286-9df0-ef15aa0950cb","block_type":"box","text":"exchanges, and other industry firms. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":20,"box":{"x":265,"y":617,"width":626,"height":11}},{"id":"24eee820-8dee-414d-9398-970951493a06","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":20,"box":{"x":264,"y":632,"width":608,"height":12}},{"id":"aae1b418-83ba-4689-a51a-59870d77ad31","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":20,"box":{"x":265,"y":648,"width":575,"height":11}},{"id":"7e49e265-3b50-4715-b457-c51995cbdcd3","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":20,"box":{"x":264,"y":663,"width":591,"height":11}},{"id":"727471c7-9c79-4db7-8cd1-c8b151977876","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":20,"box":{"x":265,"y":678,"width":627,"height":11}},{"id":"c5e9df2b-8ba1-4845-9b09-543f04299f4b","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":20,"box":{"x":265,"y":693,"width":578,"height":11}},{"id":"34cde68c-5240-49f0-bff5-6107bffbcd1e","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":20,"box":{"x":265,"y":708,"width":607,"height":11}},{"id":"0b0e2c0d-448c-4e78-94ad-86319b9c2aa6","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":20,"box":{"x":265,"y":723,"width":615,"height":11}},{"id":"218bf05c-c5bc-43a0-961f-be48568cb004","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. 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In addition, Ms. Richards serves as a","page_number":20,"box":{"x":265,"y":799,"width":628,"height":11}},{"id":"42c6bed5-573b-4df5-8756-429aa54459dc","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":20,"box":{"x":265,"y":814,"width":460,"height":11}},{"id":"5e339398-c13f-4346-bdbe-8bc38620f788","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5485d501-432e-4ed7-854e-e5dcfafd5eec","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7677b7e-0290-4157-ac54-31477a52cdc9","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":21,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"9a39db27-e112-4395-bf18-eb6b677027a5","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":65,"width":818,"height":12}},{"id":"a4d8bcd9-3278-400b-ab81-168bfa354189","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":81,"width":603,"height":11}},{"id":"d6081846-4aef-41e1-a41a-181bb8ddc477","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":96,"width":606,"height":11}},{"id":"c38b86b4-ba71-4157-838f-58d23f75d2d9","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":111,"width":608,"height":9}},{"id":"81c1149b-34c9-4fa0-abb8-ff16478485eb","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":126,"width":626,"height":11}},{"id":"758a055f-caa5-445f-9661-b4068fe1c350","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":141,"width":591,"height":11}},{"id":"54f2f54c-63fc-49e9-99d9-3ee15b81637b","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":156,"width":265,"height":11}},{"id":"0b6b9e82-398f-4292-a074-48946595088e","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":179,"width":833,"height":11}},{"id":"6112b8e2-ea97-46cf-b6ea-df83e4cd89ba","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":194,"width":638,"height":11}},{"id":"5efe9642-60e3-465a-bd99-44e423f0204c","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":209,"width":608,"height":11}},{"id":"b562559d-41f0-4cd7-993a-c5b7a40249b0","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":224,"width":645,"height":11}},{"id":"ca3c4a69-087d-4fcb-a36c-fdcc581ba16e","block_type":"box","text":"firm’s executive committee. 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These positions","page_number":21,"box":{"x":265,"y":285,"width":610,"height":11}},{"id":"c95f0465-1ff2-48db-aac9-0e1d0622885f","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"6cdafa06-68d6-4779-9901-b1ed0f073da5","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":315,"width":583,"height":11}},{"id":"c41a7fd4-9919-4f80-805a-b841ada15261","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":21,"box":{"x":265,"y":330,"width":372,"height":11}},{"id":"678ff6f2-85e3-4e90-ac74-9814fa7ef662","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":21,"box":{"x":70,"y":353,"width":807,"height":11}},{"id":"717806ea-178c-4237-8a6c-ee7428e3d97e","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":368,"width":641,"height":11}},{"id":"35fccf42-8ab4-4f75-8409-d501fca8c1d2","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":21,"box":{"x":265,"y":383,"width":618,"height":11}},{"id":"7f8512b5-de00-400c-9444-85edfbfc2852","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":21,"box":{"x":265,"y":398,"width":594,"height":11}},{"id":"d89d0584-71ab-48ce-8153-ba81e6a647ca","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":21,"box":{"x":265,"y":413,"width":639,"height":11}},{"id":"a09e576b-59c1-4f0c-a570-d6c5b57ce2bc","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":428,"width":575,"height":11}},{"id":"bb4d83ce-5750-423d-ac07-fb28fff827ad","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":443,"width":131,"height":9}},{"id":"4927bd45-3167-4e80-8841-776dae585b5e","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":21,"box":{"x":69,"y":466,"width":808,"height":11}},{"id":"cd0cd7aa-7ef6-4c72-8d2e-b11a565de5d6","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":21,"box":{"x":265,"y":481,"width":630,"height":11}},{"id":"5b58923b-dfcd-4497-b289-58d66d6be73f","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":21,"box":{"x":265,"y":496,"width":627,"height":12}},{"id":"2f19f945-5282-45e9-abe9-83bc31ee8a37","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":21,"box":{"x":265,"y":512,"width":632,"height":11}},{"id":"862745e5-38db-43a9-b209-59240b154534","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":21,"box":{"x":265,"y":526,"width":615,"height":12}},{"id":"53f098ec-7c87-4191-9f2d-8abe3b114cbc","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":21,"box":{"x":265,"y":542,"width":608,"height":11}},{"id":"f7cc677c-4731-469c-8cba-6916ad661442","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":21,"box":{"x":264,"y":557,"width":620,"height":11}},{"id":"c1feed5f-f563-4f02-99ab-12464e0cf051","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":21,"box":{"x":265,"y":572,"width":584,"height":11}},{"id":"2af57c92-c07c-4701-8c9b-f3f36f8f64b2","block_type":"box","text":"committee financial expert, as such term is defined in the applicable Commission rules.","page_number":21,"box":{"x":264,"y":587,"width":629,"height":11}},{"id":"864c0f0b-6125-45b4-a207-740871407076","block_type":"box","text":"Interested Directors","page_number":21,"box":{"x":70,"y":610,"width":140,"height":9}},{"id":"59081580-002b-4176-88cc-f2e271daceb9","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":21,"box":{"x":70,"y":625,"width":823,"height":11}},{"id":"4d80db6d-72d0-451d-b127-6966dafeaece","block_type":"box","text":"years of experience in finance and asset management. In particular, Mr. Fairbairn’s","page_number":21,"box":{"x":264,"y":640,"width":593,"height":11}},{"id":"4a4bd257-bd25-480a-9f0e-8951000e3138","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":21,"box":{"x":265,"y":655,"width":629,"height":11}},{"id":"a63d5ba6-49b3-40ca-80aa-c4f1b944efd2","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":21,"box":{"x":265,"y":670,"width":639,"height":11}},{"id":"2aace106-4920-4001-8f0d-d22be7c4dfe8","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":21,"box":{"x":265,"y":685,"width":617,"height":12}},{"id":"0e15ee04-4599-4586-a0eb-dfabe95f9e8b","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":21,"box":{"x":264,"y":700,"width":634,"height":12}},{"id":"9eb48723-ff9c-40bc-9cc4-ade3bbda8f6e","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":21,"box":{"x":265,"y":715,"width":624,"height":11}},{"id":"1003525f-00c3-48bd-8646-b12da26a41ea","block_type":"box","text":"and iShares","page_number":21,"box":{"x":265,"y":731,"width":84,"height":9}},{"id":"012bc019-5c4b-44ff-ac09-ac6d22fbf4ea","block_type":"box","text":"®","page_number":21,"box":{"x":350,"y":731,"width":6,"height":4}},{"id":"cd5f6b2a-a087-4703-8e0d-a5c50e8f5983","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":21,"box":{"x":362,"y":731,"width":478,"height":11}},{"id":"868263f9-baa6-4150-9ab4-c610aa12bbe2","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":21,"box":{"x":265,"y":746,"width":585,"height":11}},{"id":"39ca26f1-cd1e-4877-85b3-bf4ecf9c3f76","block_type":"box","text":"Strategic Partner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":21,"box":{"x":265,"y":761,"width":620,"height":11}},{"id":"95c2f261-1f94-40f5-b150-1786b14d5276","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":21,"box":{"x":265,"y":776,"width":578,"height":11}},{"id":"2bda178a-e19d-4435-b883-f7017b0271d1","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cc78e8ec-9725-439f-8743-6d76933a4410","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69458dff-6f2b-4b91-8a09-73ab7ac20ad5","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":22,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"0285c434-3db7-4973-9b59-3578cc0b6b8a","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":22,"box":{"x":69,"y":65,"width":800,"height":12}},{"id":"72a77e95-f19f-4725-8b00-4ccf26180bd5","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":22,"box":{"x":265,"y":81,"width":593,"height":11}},{"id":"4c713521-aacc-4579-bd6e-10a8e015ca3e","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":22,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"8d2157dc-be35-4541-bb7a-82417e8138d5","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":22,"box":{"x":265,"y":111,"width":542,"height":11}},{"id":"8681f69e-517d-41ce-b802-c4b2bc6fd5c9","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":22,"box":{"x":265,"y":126,"width":617,"height":11}},{"id":"fb7a51da-81c3-44c7-9b3f-aa3ac470ac3e","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":22,"box":{"x":265,"y":141,"width":620,"height":11}},{"id":"e551b174-f983-4986-889e-d7412b879899","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":22,"box":{"x":265,"y":156,"width":616,"height":11}},{"id":"f928c98b-caba-4a48-a417-9fb273b591c8","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":22,"box":{"x":265,"y":171,"width":639,"height":12}},{"id":"b896d9c4-1afc-406f-afb3-59bb2a08bc28","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":22,"box":{"x":265,"y":186,"width":603,"height":9}},{"id":"4fee0e54-b051-4b0e-8d04-b944d1df5ae4","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":22,"box":{"x":265,"y":201,"width":582,"height":12}},{"id":"c69a960b-30f4-4d16-b3e6-c39840fff750","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":22,"box":{"x":265,"y":217,"width":632,"height":11}},{"id":"f071826d-bb2b-428c-84eb-f8c417487a8e","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. Mr. Perlowski is a member of","page_number":22,"box":{"x":264,"y":232,"width":572,"height":11}},{"id":"7ec0aa2f-3c04-4e44-9d19-ecb301d78ac3","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":22,"box":{"x":265,"y":247,"width":294,"height":9}},{"id":"97d106a2-9dbb-4599-afa0-9585f73504ba","block_type":"box","text":"Biographical Information","page_number":22,"box":{"x":69,"y":278,"width":178,"height":11}},{"id":"abdf2af4-fa0c-4cba-b56d-4997d42d99cf","block_type":"box","text":"Certain biographical and other information relating to the Directors of the Corporation is set forth below,","page_number":22,"box":{"x":102,"y":301,"width":741,"height":11}},{"id":"b182c9fb-e585-4e51-904c-0585d733c615","block_type":"box","text":"including their address and year of birth, principal occupations for at least the last five years, length of time 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Walton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":754,"width":550,"height":9}},{"id":"19975286-0a8d-4973-b7b5-7d9ddb86d537","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":698,"y":753,"width":211,"height":11}},{"id":"49cf2716-b218-48bb-a709-4d72d739f0b9","block_type":"box","text":"Interested Directors","page_number":26,"box":{"x":70,"y":769,"width":140,"height":9}},{"id":"b6f52fe9-4b70-4e38-9110-072d8aa08a68","block_type":"box","text":"Robert Fairbairn. . .","page_number":26,"box":{"x":79,"y":784,"width":134,"height":9}},{"id":"d4844c9e-1859-4dca-a96e-93ffdfc974aa","block_type":"box","text":"...................................................","page_number":26,"box":{"x":220,"y":792,"width":409,"height":1}},{"id":"c07c92cd-ef32-4d5a-8d6a-88fe1096ddf2","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":698,"y":784,"width":211,"height":11}},{"id":"014c5486-f4de-4017-900a-7e6445888c58","block_type":"box","text":"John M. 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As of","page_number":26,"box":{"x":69,"y":860,"width":754,"height":11}},{"id":"f155a86e-413a-4afd-8061-eda94f93a5ef","block_type":"box","text":"December 31, 2025 (and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026) none of the Independent","page_number":26,"box":{"x":70,"y":875,"width":811,"height":11}},{"id":"1a71ff5c-6490-4cd8-840e-d7ea998a3ff4","block_type":"box","text":"Directors of the Corporation or their immediate family members owned beneficially or of record any securities of the","page_number":26,"box":{"x":70,"y":890,"width":822,"height":11}},{"id":"18656cc1-51f3-4ae3-8a18-e311991cfc7b","block_type":"box","text":"I-17","page_number":26,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"674851d2-0729-43cc-8a32-453a6206eec1","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a154464b-7b64-4d6f-ba6c-362953b07739","block_type":"box","text":"Fund’s investment adviser, principal underwriter, or any person directly or indirectly controlling, controlled by, or under","page_number":27,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"dce082ac-6c77-4b26-886e-25ddae0a7645","block_type":"box","text":"common control with such entities.","page_number":27,"box":{"x":69,"y":60,"width":248,"height":9}},{"id":"0217fc4d-c978-4822-971a-9572a215f831","block_type":"box","text":"Compensation of Directors","page_number":27,"box":{"x":69,"y":82,"width":194,"height":11}},{"id":"ccaae78c-fc98-44d3-a76b-da97c109979d","block_type":"box","text":"Each Director who is an Independent Director is paid as compensation an annual retainer of $375,000 per year","page_number":27,"box":{"x":102,"y":99,"width":796,"height":11}},{"id":"fbe899ab-1f18-4e96-98aa-bad8680f4e15","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":27,"box":{"x":68,"y":112,"width":810,"height":11}},{"id":"1ef92d8d-dd72-4af8-9425-8cb55a969a5c","block_type":"box","text":"including the Corporation, and a $20,000 board meeting fee to be paid for each in-person board meeting attended","page_number":27,"box":{"x":70,"y":125,"width":814,"height":12}},{"id":"ca579468-a301-43cb-9649-90a6e056cdb1","block_type":"box","text":"(and may receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings","page_number":27,"box":{"x":69,"y":139,"width":811,"height":11}},{"id":"6828aa84-950a-4445-b923-41fc83086836","block_type":"box","text":"held in a calendar year (compensation for meetings in excess of this number to be determined on a case-by-case","page_number":27,"box":{"x":69,"y":152,"width":805,"height":11}},{"id":"8b1f0931-8712-4a8d-aefb-96fccf455e33","block_type":"box","text":"basis), together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":27,"box":{"x":69,"y":165,"width":838,"height":11}},{"id":"626bd345-79cb-4966-9db8-98ceb8c44fe3","block_type":"box","text":"relating to attendance at meetings. 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The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":203,"width":689,"height":12}},{"id":"c6c082cc-e0e4-4a62-a539-3b551d3ef18f","block_type":"box","text":"The following table sets forth the compensation the Corporation paid to the Directors, on behalf of the Fund, for","page_number":27,"box":{"x":101,"y":221,"width":798,"height":11}},{"id":"a5b9d5d8-2124-4789-8928-48424016a5ee","block_type":"box","text":"the fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for","page_number":27,"box":{"x":68,"y":234,"width":842,"height":11}},{"id":"34bfa84b-0a2d-40f0-b0c6-afc24f4964cd","block_type":"box","text":"the calendar year ended December 31, 2025.","page_number":27,"box":{"x":68,"y":247,"width":326,"height":11}},{"id":"6e0e9cde-ed85-47d8-a4cd-97fca71e20b2","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":306,"width":32,"height":7}},{"id":"b809c771-e589-467e-8d45-cd40bcad5a5d","block_type":"box","text":"Compensation","page_number":27,"box":{"x":551,"y":296,"width":83,"height":9}},{"id":"60d7af1b-0ac0-43dd-a061-8f8cb178b7a1","block_type":"box","text":"from the Fund","page_number":27,"box":{"x":552,"y":306,"width":81,"height":7}},{"id":"dca3b457-a3db-4108-bf4b-c58900f1dee9","block_type":"box","text":"Estimated Annual","page_number":27,"box":{"x":664,"y":286,"width":102,"height":7}},{"id":"c39ba9ce-afcd-4508-aa6a-c3dea9199504","block_type":"box","text":"Benefits upon","page_number":27,"box":{"x":676,"y":296,"width":79,"height":9}},{"id":"4c9de92a-9137-4bfb-8d74-17412b209770","block_type":"box","text":"Retirement","page_number":27,"box":{"x":683,"y":306,"width":64,"height":7}},{"id":"2695f232-003d-482f-8497-52c529b9801b","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":822,"y":266,"width":61,"height":9}},{"id":"68fa6975-6691-499c-9adf-9bb598520d63","block_type":"box","text":"Compensation from","page_number":27,"box":{"x":796,"y":276,"width":113,"height":9}},{"id":"58709944-d3f5-4d0b-ae0f-f0fbcd3784df","block_type":"box","text":"the Fund and Other","page_number":27,"box":{"x":797,"y":286,"width":112,"height":7}},{"id":"368ec2ad-7a43-4233-83ec-041f42b6376d","block_type":"box","text":"BlackRock-Advised","page_number":27,"box":{"x":798,"y":296,"width":110,"height":7}},{"id":"22af4e8f-b686-4714-860b-9aa47b89baf5","block_type":"box","text":"Funds","page_number":27,"box":{"x":834,"y":306,"width":34,"height":7}},{"id":"a12c16ac-3e00-4eaa-8b22-e7bcf057067b","block_type":"box","text":"1","page_number":27,"box":{"x":868,"y":306,"width":4,"height":4}},{"id":"39a211c6-91fc-40bc-8a66-27327521b47b","block_type":"box","text":"Independent Directors","page_number":27,"box":{"x":70,"y":324,"width":156,"height":11}},{"id":"8677f73c-0013-4712-88b4-ffe50598393e","block_type":"box","text":"Christopher J. 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Perlowski","page_number":27,"box":{"x":78,"y":566,"width":127,"height":9}},{"id":"fc24f6f5-2eae-417f-9e94-c5081d329923","block_type":"box","text":".......................................","page_number":27,"box":{"x":208,"y":573,"width":312,"height":2}},{"id":"2efc1427-1124-40b4-9dd3-9686a986661e","block_type":"box","text":"None None None","page_number":27,"box":{"x":575,"y":566,"width":296,"height":9}},{"id":"4c4e7021-ccda-407d-84d5-c0f78baa5afb","block_type":"box","text":"1","page_number":27,"box":{"x":69,"y":589,"width":3,"height":4}},{"id":"7f4452a8-3abc-43c0-b1cb-1eb204584566","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":27,"box":{"x":94,"y":589,"width":788,"height":9}},{"id":"4883dfb4-97df-4a3d-b89c-c0331b7954f7","block_type":"box","text":"page I-13.","page_number":27,"box":{"x":94,"y":599,"width":55,"height":9}},{"id":"fd572750-50fa-4ac0-854f-94b8beb9d12d","block_type":"box","text":"2","page_number":27,"box":{"x":69,"y":611,"width":3,"height":3}},{"id":"b0f87750-5308-4915-84e9-7a561d18c618","block_type":"box","text":"Compensation includes $546 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":27,"box":{"x":93,"y":610,"width":726,"height":9}},{"id":"70913aab-778c-4b0a-92cb-5b3d51de1cec","block_type":"box","text":"3","page_number":27,"box":{"x":69,"y":622,"width":3,"height":3}},{"id":"d4cc65d2-56cc-4cbf-9a56-59ffe9b402a2","block_type":"box","text":"Chair of the Audit Committee.","page_number":27,"box":{"x":93,"y":622,"width":168,"height":7}},{"id":"ec55853b-e1e5-4e38-9cbd-6c5a85509bf2","block_type":"box","text":"4","page_number":27,"box":{"x":68,"y":633,"width":4,"height":4}},{"id":"4797fe95-1da4-4834-8bbf-469126a8fb96","block_type":"box","text":"Chair of the Governance Committee.","page_number":27,"box":{"x":93,"y":633,"width":206,"height":7}},{"id":"b39380f7-c59b-48a9-afa2-4627c8b0caf6","block_type":"box","text":"5","page_number":27,"box":{"x":69,"y":645,"width":3,"height":3}},{"id":"b8b05cb6-9950-47b0-93e0-cfdacda4640e","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":27,"box":{"x":93,"y":644,"width":269,"height":9}},{"id":"8985e87d-6a70-4d6c-9fdd-051370674b72","block_type":"box","text":"6","page_number":27,"box":{"x":69,"y":656,"width":3,"height":3}},{"id":"fa8053d4-e54c-4148-bb02-e1918a9d18fd","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":27,"box":{"x":93,"y":656,"width":352,"height":9}},{"id":"d3a51cbb-188b-46d2-b5e7-d0a4b807bdcf","block_type":"box","text":"7","page_number":27,"box":{"x":69,"y":667,"width":3,"height":4}},{"id":"ba45468d-09f7-4292-bb74-afaff41a6529","block_type":"box","text":"Chair of the Compliance Committee.","page_number":27,"box":{"x":93,"y":667,"width":205,"height":9}},{"id":"3805fb01-2148-4910-8358-480a9c2184ef","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":27,"box":{"x":69,"y":696,"width":432,"height":11}},{"id":"0c40e21f-a713-4df7-832c-12891cbba0e0","block_type":"box","text":"Management Agreement","page_number":27,"box":{"x":69,"y":726,"width":180,"height":11}},{"id":"49bc6daf-c5f1-43b7-bd2c-8d05010f7455","block_type":"box","text":"The Corporation, on behalf of the Fund, has entered into a management agreement with the Manager (the","page_number":27,"box":{"x":101,"y":748,"width":754,"height":12}},{"id":"dc1a26ca-5e57-4142-82fa-584007c91b94","block_type":"box","text":"”Management Agreement“) pursuant to which the Manager provides the Fund with investment advisory and","page_number":27,"box":{"x":70,"y":764,"width":762,"height":11}},{"id":"31deeb89-0ea3-416e-9bd2-e339c596b351","block_type":"box","text":"management services and receives for its services to the Fund a monthly fee as a percentage of the average daily","page_number":27,"box":{"x":69,"y":779,"width":816,"height":11}},{"id":"bc9fe59e-9106-461e-afab-c982c2604ff9","block_type":"box","text":"net assets of the Fund.","page_number":27,"box":{"x":69,"y":794,"width":164,"height":9}},{"id":"bb26be5d-7f33-4c4b-a38a-60eb86d45675","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":27,"box":{"x":102,"y":816,"width":762,"height":12}},{"id":"bfeab744-9b61-47f4-a4b0-1231daeeaf71","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":27,"box":{"x":69,"y":832,"width":799,"height":11}},{"id":"df2cae9f-a5c9-4ec5-997a-8af9a025f62c","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":27,"box":{"x":68,"y":847,"width":726,"height":11}},{"id":"2f7192b3-684c-4ff3-952f-f1706a24ac27","block_type":"box","text":"June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of","page_number":27,"box":{"x":69,"y":862,"width":799,"height":11}},{"id":"9016cbd8-0c5a-4ceb-9330-0407872ca120","block_type":"box","text":"investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds","page_number":27,"box":{"x":70,"y":877,"width":780,"height":11}},{"id":"eb15ecdf-562a-4858-b557-48185d11a08e","block_type":"box","text":"managed by BlackRock or its affiliates, through June 30, 2028.","page_number":27,"box":{"x":69,"y":892,"width":451,"height":11}},{"id":"0c2c65a9-0935-42c2-ae58-1de1b7bbcd82","block_type":"box","text":"I-18","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bc1ce235-8074-462b-a1f2-12e8a5b28a51","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b2bdb0a7-34ba-4c69-840a-968983dae0d3","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":28,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"ccf3ae5c-1ca2-4846-b7f3-e3cb1a9dac02","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Interest Expense, Dividend","page_number":28,"box":{"x":70,"y":60,"width":823,"height":11}},{"id":"c850200b-7a1a-41d5-abac-b22457b7ec95","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as defined in the Fund’s","page_number":28,"box":{"x":70,"y":75,"width":734,"height":11}},{"id":"52c42fa6-04a4-4938-ba00-05dfe5fc82fb","block_type":"box","text":"Prospectuses) as a percentage of average daily net assets to 0.73% for Investor A Shares, 1.48% for Investor C","page_number":28,"box":{"x":69,"y":90,"width":798,"height":11}},{"id":"33aad641-c459-4711-8260-38436ebc8b4c","block_type":"box","text":"Shares, 0.48% for Institutional Shares, 0.43% for Class K Shares and 0.98% for Class R Shares through","page_number":28,"box":{"x":69,"y":105,"width":746,"height":11}},{"id":"a7ba5881-2c02-46f5-9530-f26c41943a7a","block_type":"box","text":"June 30, 2028. This contractual agreement may be terminated upon 90 days’ notice by a majority of the non","page_number":28,"box":{"x":69,"y":120,"width":780,"height":12}},{"id":"b71bb7f8-c3f0-4bd9-bb6a-e15f21da11d5","block_type":"box","text":"interested directors of the Corporation or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":70,"y":135,"width":798,"height":12}},{"id":"72ad8883-2544-4e15-b291-4496d03ad180","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":28,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"d627bf17-9b00-4750-be6f-fcf19a843792","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":28,"box":{"x":70,"y":173,"width":834,"height":11}},{"id":"aeffab4c-3843-45a8-97f9-d41ce4917d98","block_type":"box","text":"to perform investment advisory services with respect to the Fund. In addition, the Manager may delegate certain of","page_number":28,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"a6b1c72b-b4d4-41b9-a884-13f78f512547","block_type":"box","text":"its management functions under the Management Agreement to one or more of its affiliates to the extent permitted","page_number":28,"box":{"x":70,"y":203,"width":824,"height":12}},{"id":"2500fafb-f500-4c8c-89b6-61f205932340","block_type":"box","text":"by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in its sole","page_number":28,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"25cbbd97-97a1-4993-bf7d-cd35d2408c55","block_type":"box","text":"discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":69,"y":234,"width":451,"height":11}},{"id":"577f267c-e161-4cec-933a-42bd8c8f8939","block_type":"box","text":"The table below sets forth information about the management fees paid by the Fund and the Master Portfolio to","page_number":28,"box":{"x":101,"y":256,"width":799,"height":12}},{"id":"501e7922-860c-4974-8545-437252558105","block_type":"box","text":"the Manager, and the amounts waived and/or reimbursed, for the periods indicated.","page_number":28,"box":{"x":68,"y":271,"width":600,"height":12}},{"id":"59bfd361-92cf-46bd-82eb-a66e15a96aa7","block_type":"box","text":"Fees Paid","page_number":28,"box":{"x":586,"y":300,"width":55,"height":7}},{"id":"4d556e42-a3dc-4436-bd46-bc59a032f39d","block_type":"box","text":"to BlackRock","page_number":28,"box":{"x":574,"y":310,"width":79,"height":7}},{"id":"2bb6856a-60cc-424e-b8b9-db2cb2cd5dbb","block_type":"box","text":"Fees Waived","page_number":28,"box":{"x":700,"y":300,"width":72,"height":7}},{"id":"2d541ffc-4323-447f-bfcf-8b92d8f5eaa9","block_type":"box","text":"by BlackRock","page_number":28,"box":{"x":696,"y":310,"width":80,"height":9}},{"id":"b2ffc32a-b1a3-4d0a-aad1-952725761e77","block_type":"box","text":"Fees Reimbursed","page_number":28,"box":{"x":810,"y":300,"width":99,"height":7}},{"id":"52e7d352-da90-4d7f-8663-738180548589","block_type":"box","text":"by BlackRock","page_number":28,"box":{"x":820,"y":310,"width":80,"height":9}},{"id":"b36b3e8d-6bb3-42ce-8543-e14fa24c9e2f","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,625,370 $1,837,765 $1,407,899","page_number":28,"box":{"x":70,"y":327,"width":833,"height":12}},{"id":"37d7447d-1041-4bb0-aae4-afb69435bfa7","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,845,518 $1,742,614 $1,262,262","page_number":28,"box":{"x":70,"y":342,"width":832,"height":12}},{"id":"3dc62e5b-a811-411e-9dc3-7bf24d835f07","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,632,389 $1,682,854 $1,959,467","page_number":28,"box":{"x":70,"y":357,"width":832,"height":12}},{"id":"18b14aa6-230c-4fea-ab99-036322409d76","block_type":"box","text":"Administration Agreement","page_number":28,"box":{"x":68,"y":389,"width":191,"height":11}},{"id":"c45b1a87-057c-48b9-a4dc-286cc7112b8b","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":28,"box":{"x":102,"y":412,"width":711,"height":11}},{"id":"29501c0a-d9e4-498d-9a57-6d0c87eec073","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":28,"box":{"x":69,"y":427,"width":838,"height":11}},{"id":"dee0d07f-4f30-4238-9622-b028a3f34814","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":28,"box":{"x":68,"y":442,"width":830,"height":11}},{"id":"0e0552b2-52d8-4a6b-bf16-89f66c0667a2","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":28,"box":{"x":70,"y":457,"width":813,"height":12}},{"id":"cebcd37e-d707-43da-b0d2-408c7bb06e2a","block_type":"box","text":"returns; prepare certain reports required by regulatory authorities; calculate various contractual expenses; determine","page_number":28,"box":{"x":69,"y":473,"width":837,"height":11}},{"id":"794a7bb6-b574-4639-b026-4ee46674d950","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":28,"box":{"x":68,"y":487,"width":836,"height":12}},{"id":"0ac7a187-e8f2-4299-b4ae-ce98a9d937f8","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":28,"box":{"x":68,"y":503,"width":785,"height":11}},{"id":"3e1d6aef-67e6-4c04-8e71-47271ca98d59","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Corporation’s officers,","page_number":28,"box":{"x":69,"y":518,"width":811,"height":11}},{"id":"b17fd55d-ddb8-43a9-98e1-143d978f7c67","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":28,"box":{"x":70,"y":533,"width":819,"height":11}},{"id":"75a4dcdb-2f30-482e-88c3-857e1df4d6d1","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. 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. . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":28,"box":{"x":314,"y":810,"width":288,"height":11}},{"id":"a6d2eeb4-d1c9-4880-86fb-7a656615da2c","block_type":"box","text":"731,077 $597,751 $0","page_number":28,"box":{"x":605,"y":810,"width":263,"height":11}},{"id":"6383cbcb-70a9-4d9d-8756-ce2b5415448a","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":28,"box":{"x":70,"y":826,"width":238,"height":11}},{"id":"52ce9871-696b-4d54-933c-f9247d29ab8b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":28,"box":{"x":314,"y":825,"width":288,"height":11}},{"id":"09622f0c-0629-4069-af63-10e6b4b4713a","block_type":"box","text":"702,906 $587,519 $0","page_number":28,"box":{"x":605,"y":825,"width":263,"height":11}},{"id":"0f7f6ab6-7edf-49b3-bcb5-c70f4e964a66","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides 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$140,102","page_number":29,"box":{"x":714,"y":130,"width":186,"height":11}},{"id":"8b9fd408-aa61-4a1a-9cea-ed2832ec0eeb","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . .","page_number":29,"box":{"x":70,"y":146,"width":283,"height":11}},{"id":"611910f6-10b9-4576-8c52-26b8b7963cad","block_type":"box","text":"........................................","page_number":29,"box":{"x":360,"y":154,"width":319,"height":1}},{"id":"ed54c02a-c028-4e76-93a4-069c015340ac","block_type":"box","text":"$220,102 $220,102","page_number":29,"box":{"x":714,"y":145,"width":186,"height":12}},{"id":"1baa444e-37da-465a-9cc2-a71e6ea57102","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":29,"box":{"x":69,"y":178,"width":335,"height":11}},{"id":"86f5be7e-7d1b-4a60-9d6d-bddfac14c97a","block_type":"box","text":"Raffaele Savi, Travis Cooke, CFA, and Richard Mathieson are the portfolio managers and are jointly and 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2026.","page_number":29,"box":{"x":69,"y":283,"width":691,"height":12}},{"id":"ba242ff4-2d96-49a0-b9ae-14eea5192a3f","block_type":"box","text":"Number of Other Accounts Managed","page_number":29,"box":{"x":365,"y":312,"width":211,"height":9}},{"id":"6d7be114-f8d9-4a06-81ba-3082244d3754","block_type":"box","text":"and Assets by Account Type","page_number":29,"box":{"x":388,"y":322,"width":165,"height":9}},{"id":"b7d0c67b-0667-495e-b58e-c10e685b812d","block_type":"box","text":"Number of Other Accounts and Assets","page_number":29,"box":{"x":655,"y":312,"width":222,"height":7}},{"id":"08d4ca32-0e8c-49a0-945d-5a72e0779280","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":29,"box":{"x":633,"y":322,"width":265,"height":9}},{"id":"a2aea485-6bea-4e6c-a6ac-15a0eac8af67","block_type":"box","text":"Name of Portfolio 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Pooled","page_number":29,"box":{"x":720,"y":344,"width":75,"height":8}},{"id":"0e73c1dd-dcb0-421b-bc66-0e46c67e1dec","block_type":"box","text":"Investment","page_number":29,"box":{"x":726,"y":355,"width":64,"height":7}},{"id":"f0ff22e2-16b1-4840-a6c3-911b89269159","block_type":"box","text":"Vehicles","page_number":29,"box":{"x":734,"y":365,"width":48,"height":7}},{"id":"ab7fc407-b93e-4384-897f-d670743125fc","block_type":"box","text":"Other","page_number":29,"box":{"x":843,"y":355,"width":32,"height":7}},{"id":"94908c99-876e-4cda-bd30-f684e76892a8","block_type":"box","text":"Accounts","page_number":29,"box":{"x":832,"y":365,"width":54,"height":7}},{"id":"23860454-1280-4d97-b8c5-0542bbc65ec3","block_type":"box","text":"Travis Cooke, CFA 30 129 20 0 4 6","page_number":29,"box":{"x":73,"y":378,"width":789,"height":9}},{"id":"264bd570-4ed7-4370-b69b-5aa96c80ee7e","block_type":"box","text":"$28.33 Billion $32.31 Billion $20.01 Billion $0 $8.44 Billion $6.67 Billion","page_number":29,"box":{"x":329,"y":390,"width":566,"height":9}},{"id":"c72edbf2-95a5-4c21-9268-98098d39ae7c","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":29,"box":{"x":74,"y":404,"width":788,"height":7}},{"id":"12bb6de2-586f-4b04-8d1a-bcacf23bf6d3","block_type":"box","text":"$41.05 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":29,"box":{"x":329,"y":416,"width":570,"height":8}},{"id":"f75f531d-48cf-4185-b1da-bb11588b0eaa","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":29,"box":{"x":74,"y":429,"width":788,"height":7}},{"id":"4e3e64f8-4c0b-4341-8c69-716465a74d2e","block_type":"box","text":"$52.15 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":29,"box":{"x":329,"y":441,"width":566,"height":8}},{"id":"6b409190-7e50-46d0-a292-8d9a7d6fbd00","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":29,"box":{"x":69,"y":475,"width":304,"height":12}},{"id":"1e0a9396-d9dd-4ce4-b2a9-fed0dfa10550","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":29,"box":{"x":101,"y":498,"width":656,"height":11}},{"id":"aaab301c-e3bf-484f-86a4-a71c91c31250","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":29,"box":{"x":102,"y":521,"width":774,"height":11}},{"id":"3fe6a50e-0d27-4ce2-91ff-f37c229ff22d","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":29,"box":{"x":70,"y":536,"width":837,"height":11}},{"id":"d93789c8-d382-4be4-b1ee-43d82821bc3e","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":29,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"f02a9ce9-6923-4313-8ca0-de56a362e7a8","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":29,"box":{"x":69,"y":566,"width":799,"height":11}},{"id":"bf24c33c-dd6d-420a-b227-7e3de7ab50d3","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":29,"box":{"x":70,"y":581,"width":670,"height":12}},{"id":"5211d16c-606a-41e6-8cad-f54926f57030","block_type":"box","text":"Base Compensation.","page_number":29,"box":{"x":102,"y":604,"width":148,"height":11}},{"id":"05ce90f6-1e56-4cbd-8dff-04cd7d7512f0","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":29,"box":{"x":257,"y":604,"width":640,"height":11}},{"id":"6327d4b2-d0f3-4001-ae0c-865eacd53835","block_type":"box","text":"firm.","page_number":29,"box":{"x":68,"y":619,"width":32,"height":9}},{"id":"ef3709fa-5560-4173-b5ec-48e36da986fa","block_type":"box","text":"Discretionary Incentive Compensation","page_number":29,"box":{"x":69,"y":649,"width":277,"height":11}},{"id":"2446ca65-ba69-443a-aaa1-0b5c56103444","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":29,"box":{"x":102,"y":672,"width":792,"height":11}},{"id":"9948d163-6e59-4a71-87e1-d814a27c4fa2","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":29,"box":{"x":68,"y":687,"width":800,"height":11}},{"id":"5103f586-2372-49a3-90f8-480174c0d6af","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":29,"box":{"x":69,"y":702,"width":777,"height":12}},{"id":"987ea1cd-fe5e-4c2b-a006-baa50a3cb05c","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":29,"box":{"x":70,"y":717,"width":817,"height":11}},{"id":"c4a5d5c1-7029-4e36-a0fb-604fcc9bcb08","block_type":"box","text":"portfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":29,"box":{"x":70,"y":732,"width":741,"height":12}},{"id":"c9ed00f8-f3d1-477b-87cc-d0d90a22ab3e","block_type":"box","text":"determination with respect to each portfolio manager’s compensation based on the performance of the Funds and","page_number":29,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"4093a1ec-a253-42e8-97ad-fc2e16dfa73d","block_type":"box","text":"other accounts managed by each portfolio manager relative to the various benchmarks. Performance is generally","page_number":29,"box":{"x":69,"y":763,"width":806,"height":11}},{"id":"b71a11f9-8f34-4242-8eae-7f920dc85a77","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The performance of Messrs. Savi,","page_number":29,"box":{"x":69,"y":778,"width":836,"height":11}},{"id":"6f940149-94e0-4606-90b6-4b2c7dfc14b7","block_type":"box","text":"Cooke and Mathieson is not measured against a specific benchmark.","page_number":29,"box":{"x":69,"y":793,"width":493,"height":11}},{"id":"a78b499c-24c8-4a0e-8648-f89ea6d65f6a","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":29,"box":{"x":102,"y":816,"width":389,"height":11}},{"id":"7da5c013-2289-4142-9519-2628e32efe58","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":29,"box":{"x":499,"y":816,"width":383,"height":11}},{"id":"293e17ac-ddbb-4a1d-ad81-97e45e3599f5","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":29,"box":{"x":70,"y":831,"width":815,"height":11}},{"id":"7efb33c9-6da7-4142-a51d-b879c4efafdf","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":29,"box":{"x":68,"y":846,"width":522,"height":11}},{"id":"e60218e8-dee5-468c-a07c-822894f29a7c","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":29,"box":{"x":102,"y":869,"width":760,"height":11}},{"id":"1006bda4-98d2-48c1-a9a5-8b884103d1df","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":29,"box":{"x":69,"y":884,"width":795,"height":11}},{"id":"04139d36-f7cd-41e1-a604-b28e809ad0ac","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":29,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"0baca838-3fb1-466e-a3a1-dde539347554","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"54fcfa49-eaa2-4e36-81a5-2e02107c923b","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18fe6b34-0f88-4b65-b757-4f228e0b37d4","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":30,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"da2bf5eb-86dc-49b9-bc55-8841fe166d53","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":30,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"6f796127-630c-4ca8-9b84-84db2611f00e","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":30,"box":{"x":69,"y":75,"width":802,"height":11}},{"id":"6861450c-508d-4849-b15f-fda53113ce3e","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":30,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"c2d7676d-f94c-447a-b4aa-fbcb9e6411be","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":30,"box":{"x":70,"y":105,"width":801,"height":11}},{"id":"d80e506e-e78e-49f9-9d13-f139476fb968","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":30,"box":{"x":70,"y":120,"width":831,"height":11}},{"id":"004cbd7a-0db8-4f35-a010-2d8ccd478374","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":30,"box":{"x":69,"y":135,"width":479,"height":12}},{"id":"82bf3daf-e659-4a95-97b0-a7d1e0e5bed1","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":30,"box":{"x":102,"y":158,"width":785,"height":11}},{"id":"4f38926c-5226-48cf-8199-0cd3d7d1d2e3","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":30,"box":{"x":68,"y":173,"width":836,"height":11}},{"id":"e11f7713-6144-494b-888d-baa692e4bbcc","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":30,"box":{"x":68,"y":188,"width":821,"height":12}},{"id":"ebaa092e-0c97-498b-a69d-fb4782fda497","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":30,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"e772d207-44c7-40ac-8922-29ff87a6d7d1","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":30,"box":{"x":70,"y":218,"width":835,"height":12}},{"id":"8cb0fd5d-3b91-4339-967a-e52cb354c879","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":30,"box":{"x":69,"y":234,"width":414,"height":11}},{"id":"85fe0797-46a1-4cb7-93c2-fb383792fd5c","block_type":"box","text":"Other Compensation Benefits.","page_number":30,"box":{"x":101,"y":256,"width":218,"height":11}},{"id":"abe47701-546f-4f0c-90c2-6a8bf784102a","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":30,"box":{"x":327,"y":256,"width":552,"height":11}},{"id":"6e4c4802-2d90-4fdc-b1b6-0331e968939d","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":30,"box":{"x":69,"y":271,"width":582,"height":12}},{"id":"917fa605-b43c-4d83-83ce-568dd7275040","block_type":"box","text":"Incentive Savings Plans","page_number":30,"box":{"x":102,"y":294,"width":167,"height":11}},{"id":"f0f4c0fb-ba25-4294-98da-155b2d84f37a","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":30,"box":{"x":274,"y":294,"width":614,"height":11}},{"id":"eb46576c-75e8-4874-9c46-be22b22010b5","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":30,"box":{"x":69,"y":309,"width":831,"height":11}},{"id":"b815eb97-47f1-446d-b15d-ca9106b6217f","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":30,"box":{"x":70,"y":324,"width":785,"height":11}},{"id":"88fff953-4357-4356-8346-6ecedde658f9","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":30,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"11ae9283-d7dd-4b1d-9b01-8082474778ce","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":30,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"6a5871ec-7b31-45e6-a6bf-c761a762c736","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":30,"box":{"x":69,"y":369,"width":831,"height":12}},{"id":"61a593b8-03de-4c91-ab9b-214b78f9d0ff","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":30,"box":{"x":69,"y":385,"width":798,"height":11}},{"id":"afbde45e-0198-44b0-bc80-de93395fe715","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":30,"box":{"x":70,"y":400,"width":809,"height":11}},{"id":"e702ca70-a7f8-466c-ace7-d017ed1b9a7b","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":30,"box":{"x":68,"y":415,"width":793,"height":11}},{"id":"85d1e730-2005-47f9-a76f-2cb0af658e53","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":30,"box":{"x":70,"y":430,"width":832,"height":11}},{"id":"c8289338-5ee0-414d-b823-a003efde5106","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":30,"box":{"x":68,"y":445,"width":805,"height":11}},{"id":"4801cb16-b249-4608-92d1-c3cdaf976dc0","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":30,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"87403c11-f3c6-4b6c-b076-42425a47e964","block_type":"box","text":"participate in these plans.","page_number":30,"box":{"x":70,"y":476,"width":185,"height":10}},{"id":"d82993f8-964d-4fc1-90d5-66efdd0bf9ee","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":30,"box":{"x":69,"y":506,"width":268,"height":11}},{"id":"13ebf220-ecd7-45c0-820a-58b7b04a24e7","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":30,"box":{"x":101,"y":528,"width":731,"height":12}},{"id":"2d3d8634-b4f6-449e-9668-9f8e44a2a542","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":30,"box":{"x":69,"y":543,"width":519,"height":12}},{"id":"84dced8d-423d-4d85-8e5b-544db6875b2e","block_type":"box","text":"Portfolio Manager","page_number":30,"box":{"x":69,"y":582,"width":105,"height":9}},{"id":"b5191159-7ad6-433f-993a-9870eaa753ca","block_type":"box","text":"Dollar Range of Equity","page_number":30,"box":{"x":759,"y":572,"width":129,"height":9}},{"id":"4bb21959-e956-4967-9732-a1671a73ae2b","block_type":"box","text":"Securities Beneficially Owned","page_number":30,"box":{"x":736,"y":582,"width":173,"height":9}},{"id":"a3897db4-cb20-406a-89e5-a010472cbe7a","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":30,"box":{"x":70,"y":599,"width":750,"height":11}},{"id":"9bcca65b-2720-4d4e-becc-d1e732313054","block_type":"box","text":"000,000","page_number":30,"box":{"x":822,"y":600,"width":63,"height":10}},{"id":"324567fc-0b66-4723-b1c6-b041349804be","block_type":"box","text":"Travis Cooke, CFA. . .","page_number":30,"box":{"x":68,"y":615,"width":148,"height":10}},{"id":"e96f7cb0-e359-44a8-a123-d56bf8461bc0","block_type":"box","text":"............................................................","page_number":30,"box":{"x":223,"y":622,"width":482,"height":2}},{"id":"f6f6db8a-b9f4-45cc-8063-f6816e0fe58b","block_type":"box","text":"$100,001 - $500,000","page_number":30,"box":{"x":744,"y":614,"width":158,"height":11}},{"id":"a36ce3d7-86f0-40f7-b049-9c6e77cff7d5","block_type":"box","text":"Richard Mathieson .","page_number":30,"box":{"x":70,"y":630,"width":138,"height":9}},{"id":"392a61f6-adc4-4f19-a2ff-6d33bde4a669","block_type":"box","text":".............................................................","page_number":30,"box":{"x":214,"y":637,"width":491,"height":2}},{"id":"155de430-977c-4dcf-96fc-72cb0d7f891f","block_type":"box","text":"$50,001 - $100,000","page_number":30,"box":{"x":749,"y":629,"width":148,"height":11}},{"id":"a154f7ee-be64-42c5-8430-28e16caf05de","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":30,"box":{"x":69,"y":661,"width":403,"height":12}},{"id":"86d653fb-f0ab-40c6-b718-48bb8f31ae22","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":30,"box":{"x":102,"y":684,"width":727,"height":11}},{"id":"72e6e53e-0954-4bc2-9ade-3f6a74d2a04c","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":30,"box":{"x":70,"y":699,"width":814,"height":11}},{"id":"96f94e84-742a-47d1-a3c5-cb616327c6be","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":30,"box":{"x":70,"y":714,"width":837,"height":11}},{"id":"df9c9f67-5b00-4f94-a87b-8fe04bad2c90","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":30,"box":{"x":70,"y":729,"width":810,"height":12}},{"id":"3636363b-f661-4114-906c-b79862fc4fc7","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":30,"box":{"x":69,"y":744,"width":782,"height":12}},{"id":"2c6c1b88-9c0b-4499-92a9-cc8cce720c7d","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":30,"box":{"x":69,"y":760,"width":830,"height":11}},{"id":"20c38c31-2182-48d7-9c03-bc8e7839c45a","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":30,"box":{"x":69,"y":775,"width":828,"height":11}},{"id":"768050f7-e685-427c-a73e-414045fe0bdf","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":30,"box":{"x":68,"y":790,"width":834,"height":11}},{"id":"892cef1d-116b-4db8-bd1a-47adc80d8e09","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":30,"box":{"x":70,"y":805,"width":777,"height":11}},{"id":"865c991f-0698-40fa-9fde-283c90494722","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":30,"box":{"x":70,"y":820,"width":821,"height":11}},{"id":"ab7bcac7-4301-488e-abcd-125bd22bb9d0","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":30,"box":{"x":69,"y":835,"width":819,"height":11}},{"id":"2446dffd-13be-492b-b155-30c2a4cad70c","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":30,"box":{"x":69,"y":850,"width":832,"height":12}},{"id":"64fe0bf4-4d62-450f-853b-2860c173f185","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":30,"box":{"x":68,"y":865,"width":804,"height":12}},{"id":"55790d2e-c80d-4317-aefb-6ebdff5739f7","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":30,"box":{"x":69,"y":881,"width":760,"height":11}},{"id":"36238c0a-6120-4542-b5b2-4c3935875532","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":30,"box":{"x":69,"y":896,"width":834,"height":11}},{"id":"262bab09-a0d2-4d7e-9558-aec259294705","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":30,"box":{"x":69,"y":911,"width":836,"height":11}},{"id":"bf573950-c331-4ffb-bacb-e9eeed6028c4","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"45fdaf95-8ee3-41c0-9b22-4911531acd6b","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3857895b-416f-4233-bf37-07073dbf66e1","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":31,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"32c90254-74cb-4f63-8b36-850988933ec6","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":31,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"0bbdca90-4199-4907-9c91-83b1dbcfb209","block_type":"box","text":"be opposed to the strategy utilized for a Fund. It should also be noted that Messrs. Savi, Cooke and Mathieson may","page_number":31,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"ba63e0d1-ed90-4948-a5a2-671a59f3fec1","block_type":"box","text":"be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only","page_number":31,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"47e39029-32bd-49bd-9d08-d2dbab0e241c","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Savi, Cooke and Mathieson may therefore be entitled to receive a","page_number":31,"box":{"x":69,"y":105,"width":788,"height":11}},{"id":"29fe0b50-8263-44c2-bcc5-30a40ad89edc","block_type":"box","text":"portion of any incentive fees earned on such accounts.","page_number":31,"box":{"x":70,"y":120,"width":390,"height":11}},{"id":"46602153-8c8d-4d2c-b6fb-29181d38d6ea","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":31,"box":{"x":101,"y":143,"width":788,"height":11}},{"id":"20f98ec9-90e2-4f55-b874-6f09588a3c1a","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":31,"box":{"x":70,"y":158,"width":839,"height":11}},{"id":"063aa9e6-82a8-4062-9aef-4c4e07d2cd6a","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":31,"box":{"x":68,"y":173,"width":823,"height":11}},{"id":"9a60c3cf-0df9-4713-ac1c-742c0dfaac8d","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":31,"box":{"x":68,"y":188,"width":812,"height":12}},{"id":"25fa3bd6-c14a-4b14-b7cb-a09c35dd77ed","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":31,"box":{"x":69,"y":203,"width":777,"height":12}},{"id":"81af01f2-a9d1-4ba2-8189-76d2d9c68e1f","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":31,"box":{"x":70,"y":219,"width":826,"height":10}},{"id":"d53138a4-b9b3-4420-84ce-de4939d31ec6","block_type":"box","text":"Custodian","page_number":31,"box":{"x":69,"y":249,"width":72,"height":9}},{"id":"d0435825-6f59-4fdb-8fc2-dad77724045e","block_type":"box","text":"BNY Mellon, which has its principal offices at 240 Greenwich Street, New York, New York 10286, serves as the","page_number":31,"box":{"x":102,"y":271,"width":794,"height":11}},{"id":"c7979be1-4bd8-4702-8533-64c3ff015486","block_type":"box","text":"custodian for the Fund (the ”Custodian“). The Custodian, among other responsibilities, maintains a custody account","page_number":31,"box":{"x":69,"y":286,"width":828,"height":12}},{"id":"ddd3693c-6872-4567-affb-ca9ca2bb78ec","block_type":"box","text":"or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon sale or","page_number":31,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"3cd407ce-b3b7-42b6-b579-9a64e796ccb8","block_type":"box","text":"maturity, and collects and receives all income and other payments and distributions on account of the assets of the","page_number":31,"box":{"x":69,"y":317,"width":825,"height":11}},{"id":"af04c974-d01b-4372-8c77-52f509edde09","block_type":"box","text":"Fund.","page_number":31,"box":{"x":70,"y":332,"width":36,"height":9}},{"id":"e40fc02f-a178-4b20-a466-39b9950266e8","block_type":"box","text":"Transfer Agent","page_number":31,"box":{"x":68,"y":362,"width":107,"height":11}},{"id":"2f0ebee4-c3a4-4cb3-bde1-182332e161a7","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (”BNY MIS“), which has its principal place of business at 118","page_number":31,"box":{"x":102,"y":385,"width":745,"height":11}},{"id":"c9155255-57c2-41c3-b2ec-bfe161c65ea8","block_type":"box","text":"Flanders Road, Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursement agent","page_number":31,"box":{"x":70,"y":400,"width":832,"height":11}},{"id":"85fa0e1b-5c05-4c38-8d18-3fac7372dd4a","block_type":"box","text":"for the Fund.","page_number":31,"box":{"x":68,"y":415,"width":89,"height":9}},{"id":"7a34ed78-5391-4b74-9d78-c3fe01224106","block_type":"box","text":"Accounting Services","page_number":31,"box":{"x":68,"y":445,"width":150,"height":11}},{"id":"4b023c66-b24c-4801-a4f8-72904f8c4cda","block_type":"box","text":"BNY MIS serves as the accounting services provider for the Fund. BNY MIS records investment, capital share","page_number":31,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"5bc6d029-a837-4ab6-84f6-0c895365a765","block_type":"box","text":"and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers for investment","page_number":31,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"92278666-aac2-45b2-9230-709e61f34086","block_type":"box","text":"securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports cash balances to the Manager;","page_number":31,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"48a70bcb-11b2-43b7-bd10-ba11dbec9024","block_type":"box","text":"prepares certain financial statements; calculates expenses, gains, losses and income; controls disbursements;","page_number":31,"box":{"x":70,"y":513,"width":796,"height":12}},{"id":"90ab5456-6b46-48f7-8cfd-2e157bc5d609","block_type":"box","text":"works with independent pricing sources; and computes and reports net asset value. In connection with its accounting","page_number":31,"box":{"x":68,"y":529,"width":839,"height":11}},{"id":"bc3eb182-240e-4bb7-8876-a0199ca543d9","block_type":"box","text":"services, BNY MIS also provides certain administration services.","page_number":31,"box":{"x":69,"y":544,"width":462,"height":10}},{"id":"a300027c-c957-4b27-8291-96e475578028","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY MIS and the Manager for accounting services for","page_number":31,"box":{"x":101,"y":566,"width":787,"height":11}},{"id":"faa0eee7-87bd-482a-9fe9-cb56f5cf90bf","block_type":"box","text":"the periods indicated.","page_number":31,"box":{"x":68,"y":582,"width":154,"height":10}},{"id":"7e646b33-834d-4819-8a39-cb3445c9b8c2","block_type":"box","text":"Fees Paid to BNY MIS Fees Paid to the Manager","page_number":31,"box":{"x":601,"y":610,"width":308,"height":8}},{"id":"34fe3053-4dc8-41d7-a498-0301a7c3dff9","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":627,"width":466,"height":11}},{"id":"2a952e3e-72fb-47e1-bb47-4a108a9b56fa","block_type":"box","text":"....","page_number":31,"box":{"x":543,"y":635,"width":26,"height":1}},{"id":"ac106b94-b646-461c-a630-615b216388e4","block_type":"box","text":"$221,148 $0","page_number":31,"box":{"x":629,"y":627,"width":214,"height":11}},{"id":"d9bbb528-c021-485d-a289-fdb9c9851a29","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":643,"width":466,"height":11}},{"id":"4270bba8-cb0b-4507-a665-933de2ff3fb2","block_type":"box","text":"....","page_number":31,"box":{"x":543,"y":650,"width":26,"height":1}},{"id":"b590c371-81f6-4e18-9b16-3445032e304b","block_type":"box","text":"$200,017 $0","page_number":31,"box":{"x":629,"y":642,"width":214,"height":11}},{"id":"e5ec18d2-4a98-4516-89aa-7dcad718bbc4","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":658,"width":466,"height":11}},{"id":"ef58e1c6-ada4-4000-986e-06f9553197ac","block_type":"box","text":"....","page_number":31,"box":{"x":543,"y":665,"width":26,"height":1}},{"id":"f82ce2a3-9fce-45d5-bff5-16dfaa073b6b","block_type":"box","text":"$197,593 $0","page_number":31,"box":{"x":629,"y":657,"width":214,"height":11}},{"id":"6e2897b4-a2c9-4d3c-a569-df363bcb78b0","block_type":"box","text":"Credit Agreement","page_number":31,"box":{"x":70,"y":689,"width":123,"height":11}},{"id":"c0eede29-f3d1-40db-84f2-e57c7a3d4533","block_type":"box","text":"The Corporation, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates","page_number":31,"box":{"x":101,"y":712,"width":804,"height":11}},{"id":"ade93634-e474-4bde-92fc-c9565d68ab2e","block_type":"box","text":"(”Participating Funds“), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":31,"box":{"x":69,"y":726,"width":817,"height":12}},{"id":"f64a497a-b873-43ca-84f1-6dd5443046e3","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":31,"box":{"x":68,"y":742,"width":743,"height":11}},{"id":"f2bd21bf-daa4-443c-a39b-65dc07b4b06e","block_type":"box","text":"commitments designated for a certain Participating Funds, the Participating Funds, including the Fund upon","page_number":31,"box":{"x":69,"y":757,"width":767,"height":11}},{"id":"9023fdc4-ad91-464d-82be-36366c130701","block_type":"box","text":"becoming a party to the Credit Agreement, can borrow up to an aggregate commitment amount of $1.75 billion at any","page_number":31,"box":{"x":69,"y":772,"width":841,"height":11}},{"id":"2c88d309-9145-4063-b227-e5e967a23e85","block_type":"box","text":"time outstanding, subject to asset coverage and other limitations as specified in the Credit Agreement. The Fund may","page_number":31,"box":{"x":68,"y":787,"width":840,"height":12}},{"id":"6acb6a14-e531-436c-a577-4feca385176c","block_type":"box","text":"borrow under the Credit Agreement to meet shareholder redemptions and for other lawful purposes. However, the","page_number":31,"box":{"x":69,"y":802,"width":808,"height":12}},{"id":"fb3c2d8c-0eb4-46d5-9b4c-843cf71ae17a","block_type":"box","text":"Fund may not borrow under the Credit Agreement for leverage. The Fund may borrow up to the maximum amount","page_number":31,"box":{"x":70,"y":818,"width":801,"height":11}},{"id":"3b81451a-67c3-4410-b123-3b1efa6bb2b6","block_type":"box","text":"allowable under its current Prospectus and SAI, subject to various other legal, regulatory or contractual limits.","page_number":31,"box":{"x":69,"y":833,"width":781,"height":11}},{"id":"ae232c28-8aca-4503-9e14-e010a7dec0b1","block_type":"box","text":"Borrowing results in interest expense and other fees and expenses, which may impact the net expenses borne by","page_number":31,"box":{"x":70,"y":848,"width":809,"height":11}},{"id":"3f0d7b75-d64e-4c11-a6ef-7173c69369b2","block_type":"box","text":"remaining shareholders of the Fund. The costs of borrowing may reduce the borrower’s return. The Fund is charged","page_number":31,"box":{"x":69,"y":863,"width":821,"height":11}},{"id":"43eebe9f-8e09-4964-9bc7-9a1391325c69","block_type":"box","text":"its pro rata share of upfront fees and commitment fees on the aggregate commitment amount based on its net","page_number":31,"box":{"x":70,"y":878,"width":792,"height":11}},{"id":"0dfe6ac8-e53f-48b0-89eb-498dd52375fa","block_type":"box","text":"assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be charged interest at a variable rate.","page_number":31,"box":{"x":69,"y":893,"width":810,"height":11}},{"id":"021a85e1-38fb-4de3-98cf-d8e6dbdb9edf","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a6018d2c-d886-4e2b-9d96-d0650a455ee7","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4e1fde4-2103-4d5d-a570-a7afcc2a8b5b","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":32,"box":{"x":68,"y":45,"width":491,"height":11}},{"id":"5d975894-6f6e-4674-9fcb-ed0a8a1f051f","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":32,"box":{"x":102,"y":67,"width":773,"height":12}},{"id":"854ffd9e-96b4-4839-912e-6089dd4ca735","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of BlackRock (“affiliates”) for the periods indicated.","page_number":32,"box":{"x":69,"y":82,"width":808,"height":12}},{"id":"f1765df1-1dd8-4edd-840f-9d0e90500931","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of BlackRock, acts as the distributor to the","page_number":32,"box":{"x":70,"y":98,"width":801,"height":11}},{"id":"3451ca36-c6fa-4768-ae3f-fa9dbe80908c","block_type":"box","text":"Fund.","page_number":32,"box":{"x":70,"y":113,"width":36,"height":9}},{"id":"10cc1313-052a-48f0-bd1e-3465e60a18a1","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":613,"y":141,"width":102,"height":7}},{"id":"55dd6af4-4324-48e1-9a3a-7b921f273309","block_type":"box","text":"Gross Sales","page_number":32,"box":{"x":437,"y":177,"width":68,"height":7}},{"id":"83ec210c-f247-45c5-9f49-99b28d39b390","block_type":"box","text":"Charges Collected","page_number":32,"box":{"x":418,"y":187,"width":107,"height":9}},{"id":"35dd94b0-b448-4f66-b36c-4fa6807c55ae","block_type":"box","text":"Sales Charges","page_number":32,"box":{"x":563,"y":177,"width":84,"height":9}},{"id":"501d2de8-7aaa-4419-ab64-2e0cdaf00633","block_type":"box","text":"Retained by BRIL","page_number":32,"box":{"x":555,"y":187,"width":100,"height":9}},{"id":"b0e1d73c-51c1-4cb2-858f-40477ea39929","block_type":"box","text":"Sales Charges","page_number":32,"box":{"x":692,"y":177,"width":83,"height":9}},{"id":"35020fa8-7b10-4f0d-b0a8-0a6b71cc7b7e","block_type":"box","text":"Paid to Affiliates","page_number":32,"box":{"x":686,"y":187,"width":96,"height":7}},{"id":"45b98aef-1354-4476-8efa-d6739a5b3abd","block_type":"box","text":"CDSCs Received","page_number":32,"box":{"x":812,"y":157,"width":97,"height":7}},{"id":"360be343-14dc-43d5-9449-3d7b74a39a2f","block_type":"box","text":"on Redemption","page_number":32,"box":{"x":817,"y":167,"width":87,"height":9}},{"id":"4972f20b-1b5c-47e2-973b-e14fd7054a9f","block_type":"box","text":"of Load Waived","page_number":32,"box":{"x":817,"y":177,"width":87,"height":7}},{"id":"4f060bde-fd69-421d-b68d-0a54b3938bc2","block_type":"box","text":"Shares","page_number":32,"box":{"x":841,"y":187,"width":39,"height":7}},{"id":"9ab985da-8b55-4c67-9b5a-53b9af0a48ae","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . .","page_number":32,"box":{"x":70,"y":205,"width":276,"height":11}},{"id":"5c52e891-436e-4d3f-b5fe-247e38942765","block_type":"box","text":".....","page_number":32,"box":{"x":352,"y":212,"width":35,"height":2}},{"id":"a937858c-a7c1-4a51-a4b2-73b144895209","block_type":"box","text":"$448,228 $34,725 $34,725 $13,183","page_number":32,"box":{"x":436,"y":204,"width":456,"height":11}},{"id":"05f36387-fcf4-4e5a-adf3-cd721f793ee0","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . .","page_number":32,"box":{"x":70,"y":220,"width":276,"height":11}},{"id":"1744e7d3-8585-4ae0-9ba5-62fec61063ef","block_type":"box","text":".....","page_number":32,"box":{"x":352,"y":227,"width":35,"height":2}},{"id":"e097a16b-b027-4677-a89d-6fb936bfef27","block_type":"box","text":"$429,358 $32,631 $32,631 $11,172","page_number":32,"box":{"x":436,"y":219,"width":456,"height":11}},{"id":"f03da147-431f-43c3-a318-c0a87064d40c","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . .","page_number":32,"box":{"x":70,"y":235,"width":276,"height":11}},{"id":"3ebaff65-69ca-4deb-8df5-97eeb9dd57cb","block_type":"box","text":".....","page_number":32,"box":{"x":352,"y":242,"width":35,"height":2}},{"id":"b09fe3c7-15ff-4e7e-aab5-0d177a1e5733","block_type":"box","text":"$367,780 $27,448 $27,448 $ 7,200","page_number":32,"box":{"x":436,"y":234,"width":456,"height":11}},{"id":"704a0f7d-06f6-4359-b180-12c0f8825877","block_type":"box","text":"Investor C Shares","page_number":32,"box":{"x":700,"y":264,"width":102,"height":8}},{"id":"65443d04-6499-42a1-a46e-1999f18d395c","block_type":"box","text":"CDSCs Received by BRIL CDSCs Paid to Affiliates","page_number":32,"box":{"x":592,"y":280,"width":317,"height":9}},{"id":"cdfc9d43-6a9a-4522-b2e4-7260284cd13d","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":32,"box":{"x":70,"y":298,"width":239,"height":11}},{"id":"757365a6-3859-4d29-92fa-fa43f170daff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,646 $2,646","page_number":32,"box":{"x":315,"y":297,"width":550,"height":11}},{"id":"d9fa8b6b-3cfa-4a4a-86bd-bb12bb082d5a","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":32,"box":{"x":70,"y":313,"width":239,"height":11}},{"id":"dbe86da8-cc39-43c8-8e88-44a630005cfc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,980 $1,980","page_number":32,"box":{"x":315,"y":312,"width":550,"height":11}},{"id":"fb3ac050-3c91-432a-8b0e-faf0d0250d72","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":32,"box":{"x":70,"y":328,"width":239,"height":11}},{"id":"5e8cf4b6-279c-4d49-aae6-ed8012280a49","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,093 $1,093","page_number":32,"box":{"x":315,"y":327,"width":550,"height":12}},{"id":"daf686b9-ff0b-4c0d-acd6-b4671c383252","block_type":"box","text":"The table below sets forth the 12b-1 fees that were paid by the Fund for the most recent fiscal year ended","page_number":32,"box":{"x":101,"y":352,"width":759,"height":11}},{"id":"17beed57-aab9-4c8b-a011-299b53d0cdbb","block_type":"box","text":"May 31, 2026 pursuant to the Fund’s 12b-1 plan. A portion of the fees collected by BRIL was paid to affiliates for","page_number":32,"box":{"x":70,"y":367,"width":812,"height":11}},{"id":"341fba87-d4b0-4fbb-867f-3afaadbfca34","block_type":"box","text":"providing shareholder servicing activities for Investor A and for providing shareholder servicing and distribution","page_number":32,"box":{"x":70,"y":382,"width":785,"height":12}},{"id":"36eb54f5-fb22-4e46-b6ce-5bcd03ce385f","block_type":"box","text":"related activities and services for Investor C and Class R Shares.","page_number":32,"box":{"x":69,"y":397,"width":464,"height":9}},{"id":"9dc7844b-a9f6-4868-9b6a-34bfb541f268","block_type":"box","text":"Class Name","page_number":32,"box":{"x":69,"y":426,"width":68,"height":7}},{"id":"1dfb3521-c108-43c0-96c3-2b2a079fa0d5","block_type":"box","text":"Fees Paid to BRIL","page_number":32,"box":{"x":806,"y":426,"width":103,"height":7}},{"id":"293fd82d-83ad-4eb3-865d-ac83f581ed10","block_type":"box","text":"Investor A Shares .","page_number":32,"box":{"x":70,"y":443,"width":134,"height":9}},{"id":"c1c036b1-c857-48b2-b9c7-37e2302736f9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,","page_number":32,"box":{"x":210,"y":443,"width":626,"height":11}},{"id":"3ea924fc-87f6-42a3-b10b-64e5bb70d490","block_type":"box","text":"399,637","page_number":32,"box":{"x":838,"y":443,"width":62,"height":11}},{"id":"b53ef6fc-d6e0-4dbf-9d84-e92ed3b25a1b","block_type":"box","text":"Investor C Shares . . .","page_number":32,"box":{"x":70,"y":459,"width":150,"height":8}},{"id":"cfb2736a-8210-4812-a903-a22a85cc8d12","block_type":"box","text":".................................................................... $","page_number":32,"box":{"x":226,"y":458,"width":596,"height":10}},{"id":"9eb12f11-644c-407e-b8ee-7ef3d0472687","block_type":"box","text":"495,171","page_number":32,"box":{"x":838,"y":459,"width":63,"height":10}},{"id":"514cfe3e-cdca-4609-8954-577510fe39c0","block_type":"box","text":"Class R Shares","page_number":32,"box":{"x":69,"y":474,"width":109,"height":9}},{"id":"39d23259-10a9-4cee-b370-3b5f1364ec1a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,996","page_number":32,"box":{"x":185,"y":473,"width":716,"height":11}},{"id":"601aa85e-5432-49d0-aae6-a4514843e965","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":32,"box":{"x":68,"y":505,"width":318,"height":11}},{"id":"725de35b-6c3f-4d1b-aeb6-3d949c093751","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund based on the","page_number":32,"box":{"x":101,"y":528,"width":790,"height":11}},{"id":"87e7585d-dfa3-4cf2-81a8-a1dd982d0be0","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on","page_number":32,"box":{"x":68,"y":543,"width":731,"height":11}},{"id":"2cea9562-5b4b-47a2-a98e-98228c438e5b","block_type":"box","text":"May 31, 2026, is set forth below.","page_number":32,"box":{"x":70,"y":558,"width":238,"height":11}},{"id":"6c24c67a-7b1c-48c5-bcc4-d4eb81e5e137","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":798,"y":586,"width":102,"height":7}},{"id":"c09a5dab-7e1f-4555-bc34-5367b9576575","block_type":"box","text":"Net Assets . . .","page_number":32,"box":{"x":70,"y":604,"width":100,"height":9}},{"id":"1e5389c0-74bd-4187-8b43-4b297e0ec84c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,958,","page_number":32,"box":{"x":176,"y":603,"width":669,"height":11}},{"id":"f28a4115-96af-40f0-b946-703e8d8ed8a2","block_type":"box","text":"677,724","page_number":32,"box":{"x":847,"y":604,"width":62,"height":10}},{"id":"d62fc283-00cc-4801-ac1f-11fe2cb4ea22","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":619,"width":320,"height":11}},{"id":"07927317-a9d0-443e-97bf-385a05f49be1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,","page_number":32,"box":{"x":396,"y":619,"width":449,"height":11}},{"id":"8758f80c-e1f2-4db7-bd08-f6ddf464cbb1","block_type":"box","text":"169,097","page_number":32,"box":{"x":847,"y":619,"width":61,"height":11}},{"id":"6837ae80-686a-4c6a-a0f5-a512b8019611","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":32,"box":{"x":70,"y":634,"width":571,"height":12}},{"id":"b04bed81-ec32-4822-ad2a-29c5f11ed454","block_type":"box","text":"..............","page_number":32,"box":{"x":649,"y":642,"width":108,"height":1}},{"id":"5d4daf3e-430f-422b-98ae-3f18b29caa04","block_type":"box","text":"$25.38","page_number":32,"box":{"x":857,"y":634,"width":52,"height":10}},{"id":"50d5cd87-3ff3-4eeb-a3d5-010c7be0004c","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":32,"box":{"x":69,"y":649,"width":534,"height":12}},{"id":"d87a66c1-e949-4763-8bb2-6d32dc67871c","block_type":"box","text":"1","page_number":32,"box":{"x":604,"y":650,"width":4,"height":4}},{"id":"3cb788ca-017c-46c7-8684-071b45d498a6","block_type":"box","text":". . . . . . . . . . . . . . . . . . 1.41","page_number":32,"box":{"x":616,"y":650,"width":293,"height":8}},{"id":"702862ed-8342-42f3-aaba-c93be9a3a5c6","block_type":"box","text":"Offering Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":69,"y":669,"width":687,"height":11}},{"id":"f7c92b95-6440-4b38-b0b3-daca0f5a20cd","block_type":"box","text":"$26.79","page_number":32,"box":{"x":857,"y":668,"width":52,"height":11}},{"id":"6244fe68-dee8-48bc-a56c-e57ca33b3ed3","block_type":"box","text":"1","page_number":32,"box":{"x":69,"y":701,"width":3,"height":4}},{"id":"6a8328e2-15d9-42fa-82ad-cb9d0ed8d1a7","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":32,"box":{"x":94,"y":701,"width":541,"height":9}},{"id":"4ee8c919-b3ba-4182-a6f9-cb89bffb14b5","block_type":"box","text":"The offering price for the other share classes of the Fund is equal to the share class’s net asset value computed","page_number":32,"box":{"x":101,"y":722,"width":806,"height":11}},{"id":"0c04facb-234f-4812-b556-b8084a7bbec0","block_type":"box","text":"as set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject","page_number":32,"box":{"x":69,"y":737,"width":837,"height":11}},{"id":"ccc2eff0-2156-4b2c-819a-2060da14d145","block_type":"box","text":"to a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":32,"box":{"x":68,"y":752,"width":833,"height":11}},{"id":"7077749e-172b-44ef-9908-858a7ffc72d0","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":32,"box":{"x":69,"y":767,"width":377,"height":11}},{"id":"f6ba7a64-7f6d-4fe8-8f9d-fcf56fe50fd7","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":32,"box":{"x":68,"y":797,"width":302,"height":12}},{"id":"80f5c12c-bba3-419f-aa59-7fa1993ea643","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":32,"box":{"x":102,"y":820,"width":609,"height":11}},{"id":"cf85611d-8b32-4ef1-9413-6f753eb22419","block_type":"box","text":"Information about the brokerage commissions, including commissions paid to affiliates, paid by the Fund for the","page_number":32,"box":{"x":102,"y":843,"width":800,"height":11}},{"id":"298667d5-c639-48ce-90d9-45702b119bb9","block_type":"box","text":"periods indicated is set forth below.","page_number":32,"box":{"x":70,"y":858,"width":253,"height":11}},{"id":"c262f86c-b59a-4194-9aec-cf6a7d3c4d43","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"125a49a9-ca2f-4532-ac0c-358357ab7d2b","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da6f5846-6ac2-4488-9a39-09baf6782a29","block_type":"box","text":"Aggregate Brokerage","page_number":33,"box":{"x":613,"y":49,"width":125,"height":9}},{"id":"479101b0-9360-4df7-b824-d1f41d582bc5","block_type":"box","text":"Commissions Paid","page_number":33,"box":{"x":623,"y":59,"width":106,"height":7}},{"id":"cd817a52-d7bd-4702-bd45-2126d00a3986","block_type":"box","text":"Brokerage Commissions","page_number":33,"box":{"x":769,"y":49,"width":140,"height":9}},{"id":"55426891-f465-49ac-b1af-ee8ade51ca86","block_type":"box","text":"Paid to Affiliates","page_number":33,"box":{"x":791,"y":59,"width":96,"height":7}},{"id":"c822b956-0de9-4a7d-a41d-b32e86219ab7","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":33,"box":{"x":70,"y":77,"width":292,"height":11}},{"id":"102f7e8f-db7b-41a6-86f1-7cbccb73c8bf","block_type":"box","text":"...........................","page_number":33,"box":{"x":369,"y":84,"width":213,"height":2}},{"id":"350f91f2-087a-4f0a-8c7c-9b77c648f29e","block_type":"box","text":"$522,273 $0","page_number":33,"box":{"x":640,"y":76,"width":208,"height":11}},{"id":"cd35e763-b348-4f86-843b-66ec3eb3e4ba","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":33,"box":{"x":70,"y":92,"width":292,"height":11}},{"id":"0c432755-545d-4130-a3f7-ed55c6e9b531","block_type":"box","text":"...........................","page_number":33,"box":{"x":369,"y":99,"width":213,"height":2}},{"id":"5556e2e8-7468-4aac-a4c5-b565813a0bbf","block_type":"box","text":"$497,619 $0","page_number":33,"box":{"x":640,"y":91,"width":208,"height":11}},{"id":"27e0c246-63a3-45b8-b8a3-e2aaedc1f4e3","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":33,"box":{"x":70,"y":107,"width":292,"height":11}},{"id":"1433dc34-621c-4dd8-b15b-276626b284fb","block_type":"box","text":"...........................","page_number":33,"box":{"x":369,"y":114,"width":213,"height":2}},{"id":"c587a8fb-0e63-407a-8f3d-c20bfa976be8","block_type":"box","text":"$973,888 $0","page_number":33,"box":{"x":640,"y":106,"width":208,"height":11}},{"id":"de2cd640-c0e6-48f1-b4c5-35e1302f4047","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":33,"box":{"x":101,"y":131,"width":770,"height":11}},{"id":"044450e8-63e8-4526-b7b1-027617f90ab8","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":33,"box":{"x":69,"y":146,"width":814,"height":11}},{"id":"09ade1b1-0fde-4c49-867e-b729764bed98","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":33,"box":{"x":68,"y":161,"width":829,"height":11}},{"id":"b8635ad6-05e3-4425-a966-bc5064ebea3e","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":33,"box":{"x":69,"y":176,"width":822,"height":12}},{"id":"bb04d786-dfa4-46f5-a8a3-095efa2c4619","block_type":"box","text":"with such brokers.","page_number":33,"box":{"x":68,"y":192,"width":130,"height":8}},{"id":"982d1919-519b-4e3b-8065-5ecdd1817c7c","block_type":"box","text":"Amount of Commissions","page_number":33,"box":{"x":289,"y":220,"width":141,"height":7}},{"id":"c597f39b-0bee-4c91-83f7-b1cae2168d0e","block_type":"box","text":"Paid to Brokers for Providing","page_number":33,"box":{"x":276,"y":230,"width":168,"height":9}},{"id":"abe97c83-89cd-4506-b2f0-195819d4db3d","block_type":"box","text":"28(e) Eligible Research Services","page_number":33,"box":{"x":264,"y":240,"width":191,"height":9}},{"id":"e7837b2d-81da-43cb-80f5-19438ddf1e57","block_type":"box","text":"Amount of Brokerage","page_number":33,"box":{"x":588,"y":230,"width":124,"height":9}},{"id":"a5d76dd1-2d08-4d2b-8857-f00da8d2ad0e","block_type":"box","text":"Transactions Involved","page_number":33,"box":{"x":587,"y":240,"width":126,"height":7}},{"id":"95356bfd-09bf-48c4-9f0a-e52a00de9506","block_type":"box","text":"$287,166 $1,693,524,860","page_number":33,"box":{"x":324,"y":257,"width":387,"height":11}},{"id":"dde8d52d-71ad-4e68-a565-e63dee327848","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":33,"box":{"x":101,"y":281,"width":796,"height":12}},{"id":"131f0625-7310-447f-9b4c-f5d5479df1e4","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents as of May 31, 2026 if any portion of such holdings were","page_number":33,"box":{"x":70,"y":297,"width":821,"height":11}},{"id":"6aec86e8-4c6d-409e-a229-3926d7673859","block_type":"box","text":"purchased during the fiscal year ended May 31, 2026, is as follows:","page_number":33,"box":{"x":70,"y":312,"width":485,"height":11}},{"id":"56a7bf8a-1f6d-4367-8992-bc900b31427c","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":33,"box":{"x":69,"y":340,"width":840,"height":9}},{"id":"3010e049-003f-4119-a91f-96336e68e6c9","block_type":"box","text":"J.P. Morgan Securities LLC . .","page_number":33,"box":{"x":69,"y":358,"width":209,"height":11}},{"id":"bcf23466-c6c3-4992-8609-ebe45e578a2e","block_type":"box","text":".................................... E","page_number":33,"box":{"x":284,"y":358,"width":380,"height":9}},{"id":"59a3131a-8a58-4685-80c7-55dc37c752d8","block_type":"box","text":"$74,063","page_number":33,"box":{"x":797,"y":357,"width":62,"height":11}},{"id":"965e1e5e-bfff-448c-8e66-a5c5f8d6b1a0","block_type":"box","text":"Morgan Stanley & Co. LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E","page_number":33,"box":{"x":70,"y":373,"width":594,"height":11}},{"id":"e91bc41a-51a2-4dca-9b27-d095186f4a80","block_type":"box","text":"$71,372","page_number":33,"box":{"x":797,"y":372,"width":62,"height":11}},{"id":"8811c772-b02f-4e5b-98ca-2d7f33f3aadd","block_type":"box","text":"BOFA Securities Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E","page_number":33,"box":{"x":70,"y":388,"width":594,"height":9}},{"id":"d1b46d9f-b8e2-41f2-8192-b32951864008","block_type":"box","text":"$68,203","page_number":33,"box":{"x":797,"y":387,"width":62,"height":11}},{"id":"43f6b2b4-77e6-4184-ba26-a6bfad121aa8","block_type":"box","text":"Citi Group Global Markets Inc. . . . . . . . . . .","page_number":33,"box":{"x":69,"y":403,"width":298,"height":11}},{"id":"4bab1782-94db-454e-8662-a96240dbf45b","block_type":"box","text":"......................... E","page_number":33,"box":{"x":374,"y":403,"width":290,"height":9}},{"id":"bee9df3f-15ac-40dc-a96a-b541d00fe3e3","block_type":"box","text":"$12,129","page_number":33,"box":{"x":797,"y":402,"width":62,"height":12}},{"id":"20a6e300-29c6-4fec-8a9e-bd7ad06bd00e","block_type":"box","text":"Securities Lending","page_number":33,"box":{"x":68,"y":435,"width":135,"height":11}},{"id":"6814ef0d-64a8-41aa-a331-3fe73f273da2","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":33,"box":{"x":101,"y":457,"width":807,"height":12}},{"id":"1295b88b-ec0a-4aa7-a98f-192a4e163662","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":33,"box":{"x":69,"y":472,"width":817,"height":12}},{"id":"28a2541e-44f4-49de-b900-b41229ff4fcb","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":33,"box":{"x":69,"y":487,"width":813,"height":12}},{"id":"ae0671df-6061-4a7a-a06d-52800fbe1248","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":33,"box":{"x":70,"y":503,"width":838,"height":11}},{"id":"fba1c6e9-9bd0-43ca-8b5f-abfbdd599569","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":33,"box":{"x":69,"y":518,"width":813,"height":11}},{"id":"5a67f74e-570b-4b03-a846-3ca9b762a8c9","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board of Directors.","page_number":33,"box":{"x":70,"y":533,"width":734,"height":11}},{"id":"0bd1e776-8d73-4678-b5a4-12689ecb5787","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":33,"box":{"x":101,"y":555,"width":735,"height":12}},{"id":"9f9ec802-844e-48f7-a079-e92e75b5736e","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":33,"box":{"x":69,"y":571,"width":834,"height":11}},{"id":"3d71ca49-635c-47b8-82e4-735db602860c","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":33,"box":{"x":70,"y":586,"width":822,"height":11}},{"id":"fb3558bb-1146-43d3-b5dd-d24443572752","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":33,"box":{"x":69,"y":601,"width":787,"height":11}},{"id":"d7d2dff5-d2d5-40be-b0d7-90cceb1b73f6","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":33,"box":{"x":69,"y":616,"width":783,"height":11}},{"id":"3e2be6fa-4139-47e0-8a36-bafe1eb2ea9f","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by the Manager (the","page_number":33,"box":{"x":70,"y":631,"width":816,"height":11}},{"id":"9ebd55fa-d643-4ccd-b0c2-be4308008e5e","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":33,"box":{"x":70,"y":646,"width":813,"height":11}},{"id":"795cb0e8-4319-4cc3-85f0-974f903d3bd2","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":33,"box":{"x":70,"y":661,"width":830,"height":12}},{"id":"8f95a23c-d7b4-47fa-bb92-f090b13b6335","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":33,"box":{"x":69,"y":676,"width":773,"height":12}},{"id":"83b5ea85-ddbf-454e-8560-c5aac033230d","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":33,"box":{"x":101,"y":699,"width":776,"height":11}},{"id":"2a09cd35-3df8-4dcd-8ce6-0955f0b683f1","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":33,"box":{"x":69,"y":714,"width":831,"height":11}},{"id":"caa26949-1b90-4183-ac84-219364ce26c9","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":33,"box":{"x":68,"y":729,"width":812,"height":12}},{"id":"ed4a7aa2-e6cd-47ee-b9f2-a1cb1b6ec192","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":33,"box":{"x":69,"y":744,"width":799,"height":12}},{"id":"64b55f51-4eae-4e6e-bc36-cf12117c5898","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":33,"box":{"x":68,"y":760,"width":835,"height":11}},{"id":"1e9807a0-6a80-4c36-889b-130f6831b221","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":33,"box":{"x":69,"y":775,"width":818,"height":11}},{"id":"565a5829-5d59-4173-8293-ae4411ee3a0b","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":33,"box":{"x":68,"y":790,"width":789,"height":11}},{"id":"6fa546a8-b9a9-4742-a1e7-e277f3fa569e","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":33,"box":{"x":69,"y":805,"width":829,"height":11}},{"id":"7d6d6a28-c0cf-4206-8002-088d81786cfe","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":33,"box":{"x":69,"y":820,"width":839,"height":11}},{"id":"3e90e42a-79d5-448a-af69-d6cb46155003","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":33,"box":{"x":69,"y":835,"width":802,"height":11}},{"id":"4a0e6c42-30ae-4592-b88f-7c1053963754","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":33,"box":{"x":70,"y":850,"width":830,"height":12}},{"id":"a07d1309-217e-457a-8df0-510ad4a403a1","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":33,"box":{"x":69,"y":865,"width":838,"height":12}},{"id":"513b08c3-857a-4688-912f-1d9c526961f6","block_type":"box","text":"Fund’s returns on securities lending.","page_number":33,"box":{"x":70,"y":881,"width":258,"height":11}},{"id":"3e7825b1-c988-4b1b-baa1-6e1fb713e4cd","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0aea531b-cf8e-4b37-9c13-f2a2fd0bdd83","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd7d287b-2181-41ee-8bf6-0f93702700de","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":34,"box":{"x":102,"y":45,"width":774,"height":11}},{"id":"05594214-9bd9-4603-bd4c-67affa9072c8","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":34,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"53fa7c6e-6363-4b58-af8c-36d9811f2985","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":34,"box":{"x":68,"y":75,"width":809,"height":11}},{"id":"00547c47-3c53-4e4f-81ab-a56d1707406d","block_type":"box","text":"Corporation and BIM.","page_number":34,"box":{"x":69,"y":90,"width":149,"height":11}},{"id":"044bf600-0e6a-4458-9aa5-934a6e49cc97","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":34,"box":{"x":102,"y":113,"width":783,"height":11}},{"id":"4149ffd4-ac73-4041-9fa4-22f989c516d0","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":34,"box":{"x":70,"y":128,"width":815,"height":11}},{"id":"5dc7bb0d-47b0-4b80-8f6a-95defcedeaff","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":143,"width":463,"height":11}},{"id":"95a912f8-a8fc-47a9-a9db-ca86b0f6d2a3","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":34,"box":{"x":102,"y":166,"width":753,"height":11}},{"id":"ce46bb4d-09d6-4bab-a6a8-15e786e53af8","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":34,"box":{"x":69,"y":181,"width":778,"height":11}},{"id":"02e73b9d-90e4-4a90-96c2-86e85e3530bd","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":34,"box":{"x":70,"y":196,"width":817,"height":11}},{"id":"0fb63713-a1de-45f3-8cf4-5261faa84351","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":34,"box":{"x":70,"y":211,"width":794,"height":11}},{"id":"92bb5b08-daaf-4dd4-9528-d2bb78765130","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":34,"box":{"x":69,"y":226,"width":825,"height":11}},{"id":"8de7f7f6-3420-4862-9c00-01495572ba21","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":34,"box":{"x":102,"y":249,"width":683,"height":11}},{"id":"8dc23a09-5252-4878-92ff-3e529cdcebd8","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":34,"box":{"x":101,"y":271,"width":803,"height":12}},{"id":"881f32a6-70d0-45d2-8813-02c79423afcc","block_type":"box","text":"the following:","page_number":34,"box":{"x":68,"y":286,"width":93,"height":12}},{"id":"65c2bd10-7c05-4e30-a238-4429a4bf7b12","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":34,"box":{"x":69,"y":307,"width":818,"height":11}},{"id":"eaaf8459-0d68-46f9-9821-259a113922f9","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":34,"box":{"x":102,"y":322,"width":333,"height":10}},{"id":"425cf501-c2a5-4b5b-be34-0d9f527fc8a4","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":34,"box":{"x":69,"y":342,"width":538,"height":11}},{"id":"810d441d-e33a-4f46-aa97-e7466e5c4dfd","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":34,"box":{"x":69,"y":362,"width":330,"height":11}},{"id":"fcf7008d-4b61-493c-a92b-798d9185cebb","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":34,"box":{"x":69,"y":382,"width":834,"height":12}},{"id":"1be29cff-72d7-4cfc-b951-fd7e12b22a88","block_type":"box","text":"of excess collateral, as necessary;","page_number":34,"box":{"x":102,"y":397,"width":246,"height":12}},{"id":"6006c07c-18c8-4d40-a31b-c72492f9df5f","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":34,"box":{"x":69,"y":418,"width":562,"height":11}},{"id":"6384f599-4d71-4b16-8e84-21fba69cc0a0","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":34,"box":{"x":69,"y":438,"width":665,"height":11}},{"id":"23f9896c-04c5-4e68-8abd-8d40e02cfa33","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":34,"box":{"x":69,"y":458,"width":822,"height":11}},{"id":"402e7a39-141c-4911-8c49-b2579fc70dff","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":34,"box":{"x":101,"y":473,"width":803,"height":11}},{"id":"6de029d5-7fa9-40d8-8e2f-deefe7469c33","block_type":"box","text":"of the loaned securities; and","page_number":34,"box":{"x":102,"y":488,"width":203,"height":11}},{"id":"748fa55c-d0bc-41c3-bbb4-4d0ee2aa7bd3","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":34,"box":{"x":69,"y":508,"width":808,"height":12}},{"id":"4a691d03-0d33-4e2a-8638-a875fc9c0450","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":34,"box":{"x":101,"y":531,"width":805,"height":11}},{"id":"5cc82a0e-1713-4e07-b83c-23125f534ca9","block_type":"box","text":"activities of the Fund and the Master Portfolio during the most recent fiscal year ended May 31, 2026.","page_number":34,"box":{"x":69,"y":546,"width":730,"height":11}},{"id":"73351206-1cf9-45ae-857a-01a89b357a54","block_type":"box","text":"Gross income from securities lending activities","page_number":34,"box":{"x":69,"y":574,"width":343,"height":11}},{"id":"a16066e9-5b50-4aec-abb9-52c55ccf10a9","block_type":"box","text":"...................................................","page_number":34,"box":{"x":416,"y":581,"width":409,"height":2}},{"id":"370c17f7-7fea-4ab6-a729-4225940cf6ea","block_type":"box","text":"$31,512","page_number":34,"box":{"x":847,"y":573,"width":62,"height":12}},{"id":"4ca6d7ef-86f7-4745-a2b0-dd4d8b5e60b1","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":34,"box":{"x":70,"y":593,"width":565,"height":12}},{"id":"dc1ff3c7-a6a7-4461-a2a3-6c6233428dd1","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":34,"box":{"x":79,"y":608,"width":599,"height":12}},{"id":"93553316-5860-4ab5-8456-baf422c0ba95","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 2,501","page_number":34,"box":{"x":685,"y":608,"width":224,"height":11}},{"id":"97693e90-f8b2-49d1-bf9d-80afd4b495fe","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":34,"box":{"x":79,"y":624,"width":673,"height":11}},{"id":"44d40e81-995e-4a55-bf52-2bf18da08703","block_type":"box","text":". . . . . . . . . $ 266","page_number":34,"box":{"x":758,"y":623,"width":151,"height":10}},{"id":"9e0d1a18-e401-427d-8d75-cc200bf53ccc","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":34,"box":{"x":78,"y":639,"width":551,"height":11}},{"id":"ae254018-21f8-49d0-a492-118a53db9ba9","block_type":"box","text":"........................ $ 0","page_number":34,"box":{"x":636,"y":638,"width":273,"height":10}},{"id":"03ca5d36-cbea-4e78-87e4-a6376925567c","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":34,"box":{"x":79,"y":654,"width":567,"height":11}},{"id":"dadd44ab-4bfb-45df-b766-246b4947383a","block_type":"box","text":"...................... $ 0","page_number":34,"box":{"x":652,"y":653,"width":257,"height":11}},{"id":"68844c1e-f910-4622-9291-958f1a939131","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":34,"box":{"x":79,"y":669,"width":289,"height":11}},{"id":"1899863a-ad5a-4a08-aa39-0c86872fa63a","block_type":"box","text":"........................................................","page_number":34,"box":{"x":375,"y":676,"width":450,"height":2}},{"id":"e51be4af-2215-4598-a420-45a744be66f3","block_type":"box","text":"$18,151","page_number":34,"box":{"x":847,"y":668,"width":62,"height":11}},{"id":"b682a193-a8e5-4e61-8d6a-4d61fa0013c0","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":34,"box":{"x":79,"y":684,"width":542,"height":11}},{"id":"aa063397-d019-4d55-b8ad-25dab19a79f4","block_type":"box","text":"......................... $ 0","page_number":34,"box":{"x":628,"y":683,"width":281,"height":11}},{"id":"834f3a14-f0d0-4457-92ed-79c695564076","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":34,"box":{"x":68,"y":699,"width":455,"height":11}},{"id":"4a7936ab-10a0-4302-89c7-7c2cc593d8c1","block_type":"box","text":".....................................","page_number":34,"box":{"x":530,"y":707,"width":295,"height":1}},{"id":"67ded822-dff4-44cb-a65f-db91c1e77687","block_type":"box","text":"$20,918","page_number":34,"box":{"x":847,"y":699,"width":62,"height":11}},{"id":"c28f630d-02c0-49a7-b02a-2c7aedabe2d6","block_type":"box","text":"Net income from securities lending activities","page_number":34,"box":{"x":69,"y":719,"width":327,"height":11}},{"id":"ad63e7e5-5b7d-468f-8797-87c0fad50800","block_type":"box","text":".....................................................","page_number":34,"box":{"x":399,"y":726,"width":426,"height":2}},{"id":"902c2a0a-cf81-491f-830d-c67cf56a6540","block_type":"box","text":"$10,594","page_number":34,"box":{"x":847,"y":718,"width":62,"height":12}},{"id":"6d503816-4aaf-46b7-910a-b77e265e9889","block_type":"box","text":"VIII. Additional Information","page_number":34,"box":{"x":68,"y":755,"width":195,"height":9}},{"id":"776ee5a9-3fbd-44ba-ae14-21fff966a306","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":34,"box":{"x":102,"y":777,"width":352,"height":11}},{"id":"60a9ce79-29ee-4032-8b1a-e05147b18ce3","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":34,"box":{"x":461,"y":777,"width":412,"height":11}},{"id":"333c3d81-a3b8-446e-9a44-4fcfce85cdec","block_type":"box","text":"Street, Boston, MA 02110, serves as the Fund’s independent registered public accounting firm.","page_number":34,"box":{"x":69,"y":792,"width":685,"height":12}},{"id":"0ef19b5e-9463-4f51-b8b9-b5c758ecb04b","block_type":"box","text":"Counsel.","page_number":34,"box":{"x":101,"y":815,"width":62,"height":9}},{"id":"155c57d7-d995-44f5-ba6a-e1f50320c045","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":34,"box":{"x":170,"y":815,"width":736,"height":11}},{"id":"01ea08c1-c1a1-4950-8eb7-0a1a8b94a9dc","block_type":"box","text":"the Fund’s counsel.","page_number":34,"box":{"x":68,"y":830,"width":139,"height":9}},{"id":"2dd087c8-18ea-4a85-bfb3-7e457186e014","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"823c9731-256a-42c5-8aa4-32b624254df9","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f940783-cdc7-42da-b0de-9a3a38d29b3b","block_type":"box","text":"Description of Shares","page_number":35,"box":{"x":70,"y":45,"width":153,"height":11}},{"id":"6a27233e-97bd-4108-a99e-8fe7bbcdfa6d","block_type":"box","text":"The Corporation is a Maryland corporation incorporated on October 20, 1999 as Merrill Lynch Large Cap Series","page_number":35,"box":{"x":101,"y":67,"width":794,"height":12}},{"id":"fa70e992-719f-4d5c-acf8-ae5343c65e56","block_type":"box","text":"Funds, Inc. and is registered under the Investment Company Act as an open-end management investment company.","page_number":35,"box":{"x":70,"y":83,"width":823,"height":11}},{"id":"dcf05aaa-650c-401d-bdb6-6cbab72f3ca6","block_type":"box","text":"The Fund is diversified. Effective September 29, 2006, the Corporation changed its name to BlackRock Large Cap","page_number":35,"box":{"x":68,"y":98,"width":814,"height":11}},{"id":"adf57cdb-6c93-47a1-90b4-e65aae5c4107","block_type":"box","text":"Series Funds, Inc. Currently, the Corporation is comprised of three series: BlackRock Advantage Large Cap Value","page_number":35,"box":{"x":69,"y":113,"width":802,"height":11}},{"id":"42fdf95f-4bd8-41e1-9e6e-979a5fee6d7a","block_type":"box","text":"Fund, BlackRock Advantage Large Cap Core Fund and BlackRock Event Driven Equity Fund. The Corporation has an","page_number":35,"box":{"x":70,"y":128,"width":814,"height":11}},{"id":"c2f76cd8-871e-4c3e-9e53-54b370721abb","block_type":"box","text":"authorized capital of 11,650,000,000 shares of Common Stock, par value $0.10 per share. The number of","page_number":35,"box":{"x":69,"y":142,"width":767,"height":12}},{"id":"ced535df-9341-4eca-b869-fe88ba22d8c8","block_type":"box","text":"authorized shares of each series of the Corporation is as follows:","page_number":35,"box":{"x":69,"y":158,"width":464,"height":11}},{"id":"cdbc0e37-fcfe-4fc8-b809-002c504e55d5","block_type":"box","text":"Common Stock","page_number":35,"box":{"x":166,"y":217,"width":89,"height":7}},{"id":"5dc20a32-03d2-41ad-b72c-982bd2a597d5","block_type":"box","text":"BlackRock","page_number":35,"box":{"x":593,"y":186,"width":62,"height":7}},{"id":"4228ca38-562e-4551-93bf-bc457c0dce5e","block_type":"box","text":"Advantage","page_number":35,"box":{"x":592,"y":197,"width":62,"height":8}},{"id":"6e40edc8-c418-4c30-9f31-c07f1daef7df","block_type":"box","text":"Large Cap 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Additional copies of the Fund’s annual and semi-annual reports to","page_number":36,"box":{"x":69,"y":491,"width":815,"height":12}},{"id":"6583cccc-8d29-40ea-b8b8-29a808478900","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":36,"box":{"x":69,"y":506,"width":785,"height":12}},{"id":"82d00f01-1d14-483c-ad08-1556bed8200d","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":36,"box":{"x":69,"y":521,"width":836,"height":12}},{"id":"bf65f682-3aae-4fe3-a674-10cd90d59b0f","block_type":"box","text":"I-27","page_number":36,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"baa6458b-9242-418d-b5f8-95a911763591","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66a4dd60-f73e-453b-aca3-4e28f3e9dbe6","block_type":"box","text":"PART II","page_number":37,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"4ccc7efb-363f-46c1-981b-9309a5c3aeec","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":37,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"12e8f00c-3139-40bb-8e7e-4f72dd25ad9c","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":37,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"369374de-a726-4a65-90b5-456d70ab525d","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":37,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"8f46f8e5-7e3e-4d54-82d5-90d4db921b68","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":37,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"1354f4be-0a59-4ebe-a875-cc24ec2e7aec","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":37,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"09834c82-ee63-432d-806d-ef9e8684abeb","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":37,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"1fa4d35b-a530-4226-a775-127cc1c0bc38","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":37,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"afd3981e-25c9-4dc8-9e89-f04b26a6525b","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":37,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"1b813892-4225-4391-8bdd-0cece5730f69","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":37,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"b30c17b1-290d-4abc-a935-363434451308","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":37,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"c3648c38-439a-4922-b819-a4261dea7b11","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":37,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"bd840f6f-41ce-4719-b402-fd3658a40dd1","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":37,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"024d0bff-4b38-49a4-9659-638804633e95","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":37,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"dbacb5d2-a93a-4550-83b0-b491780fafe5","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":37,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"c54c5a07-1152-4d53-b6de-27f8b653a703","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":37,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"ed9a5779-517c-4c76-b841-6fc36d2b41f2","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":37,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"d317eec9-fcd7-43b0-8119-888e9cf59e38","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":37,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"7d9d0845-cd4b-42b9-93b7-de7583e8dd9d","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":37,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"d0a55f9b-79cc-4c4d-8cae-e33b27f7c08f","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":37,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"e9f84ed7-9490-4257-aa40-67fe7c00260c","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":37,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"b3871403-224a-4518-bddc-d81dfcffc3c8","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":37,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"19346701-e58d-49ef-b6fb-02f9851fe748","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":37,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"bd9c67d8-162c-48e8-9dcd-81ad748e5067","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":37,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"9ac01343-0c43-4940-805b-421cbe16d767","block_type":"box","text":"particular Fund.","page_number":37,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"cee900f2-6ded-49b4-9b47-e60c97ba2876","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":37,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"9f3e7f6f-aaab-4038-a253-c994f282975c","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":37,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"f0f5b266-00c1-48d9-884c-523f126acc00","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":37,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"7ca19a6e-abbe-4efc-b8d6-8f07ebfbbe4a","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":37,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"32af66b0-1bfb-41c2-8ab7-c46e5eaa17e1","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":37,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"1469f932-17fc-4dda-a0e0-9fe394fd452f","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":37,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"306a93a0-0230-4aa1-b0d7-e15b2ca8d86d","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":37,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"ab975a75-5510-472a-8b06-3ffecb99ef66","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":37,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"f81f91b8-105a-4438-a0af-d47d573d6be5","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":37,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"cbb4d8b0-73d2-4970-877d-4442b620acfd","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":37,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"0263a9d2-cf2a-49d2-92dc-308c70e69cf7","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":37,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"64b273fb-3a30-4690-9d5a-67f2109ae21e","block_type":"box","text":"Asset-Backed Securities.","page_number":37,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"a7ab3c67-5bf4-4974-8531-3c9065345788","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":37,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"e9ef32c3-5e5c-415b-a6ef-907018c190b2","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":37,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"1415c5fa-5a38-4765-a5c3-06d504a12ae1","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":37,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"c232c2bf-3f3f-406b-879d-a1139f23fbd5","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":37,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"8a9233a1-268a-4c67-a834-7d51ae6620d4","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":37,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"82ea2d5a-6aeb-42f9-8d86-c724b6b1df2f","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":37,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"a917700a-fba8-4127-bc7f-d69485d6e21f","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":37,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"77e603b9-2787-48e1-9115-c4ba2c184bae","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":37,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"0532f518-9079-46a4-af0b-0271c1733645","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":37,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"aba07ba6-9ab2-4006-b5cb-46e89194e069","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":37,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"4f474338-b4da-47d6-8dbc-349e37a52181","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":37,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"4a4bf9bf-b3b3-453c-8ddd-15a04f17d19d","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":37,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"5bbbf701-bbde-48fd-b7a7-fdafa9e07873","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":37,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"34e5d3c0-c554-4e5e-96ef-db605e36cc45","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":37,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"dc858440-c5a1-42b6-94c4-9bdee6dd4ad2","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":37,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"33645911-2fbb-4ce8-a786-bdca3d1d2fe1","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":37,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"7b420404-3b6b-4a74-a004-f0bdd9a99c27","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":37,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"7baf5f0a-bf76-4db7-8871-bbd060b07584","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":37,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"d50aa8e7-cc3a-456c-ba41-74e340bae99c","block_type":"box","text":"II-1","page_number":37,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"b4c74ace-1d38-4e16-97b2-53c07c8fd31e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4390b3c-5144-4678-b334-e830217dbff0","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":38,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"0efb22c6-aeff-46f9-af7a-a066897eb47f","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":38,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"9230eda6-3990-4d0a-b6b3-0761c7bd4a99","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":38,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"8411d75f-53ff-4b4e-b635-76dac634f3ea","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":38,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"4a9dd0d7-73a1-4313-a709-6e6e5d304fb9","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":38,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"a1fc7b7f-3fff-4c9d-b07f-5ec4969aff5f","block_type":"box","text":"Asset-Based Securities.","page_number":38,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"30222843-f4ab-4c07-a53d-fe61f061f0b4","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":38,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"c169b605-8a55-45cc-9c29-83ec9cebc725","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":38,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"fc8c1781-5996-4d88-86ba-87a2c2a9a872","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":38,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"20ff72a0-1134-4e3b-b27c-3dc7c9c09161","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":38,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"99d606c4-c8ca-4111-9d0e-e4c7d5bae161","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":38,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"6afbfb37-0fcf-489d-9079-ac707a038141","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":38,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"9e473a98-c65f-4d16-8806-58285390d41a","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":38,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"28587d89-f65e-40d9-914a-364809af5564","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":38,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"36778a3c-a410-4abd-863d-16e18ed00c1a","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":38,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"f66bae4e-f81a-4c42-941f-03998c55806f","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":38,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"03123926-8d13-4a34-bba4-0eec4db754dc","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":38,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"98ccda6a-ae8c-498e-9d5f-12d2c8e7fee4","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":38,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"d3b00dd8-8d3c-4697-8da7-6aa1522a805c","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":38,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"d286facd-92c7-4729-80b8-a2ca69de8e0a","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":38,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"d2eb14ed-82d0-4776-b596-fcbf832b198d","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":38,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"b63fc5af-9a0c-46a0-a9e3-4b364ab09d25","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":38,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"9c428dee-e11a-40c0-a496-78d95a9582ab","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":38,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"10d42d9f-7a48-4990-9b9e-60754859bf4e","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":38,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"dc9c8f57-ddd7-478c-baaa-5c4bef26add3","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":38,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"b83261ef-68e0-4483-a97a-2bd25fab4ecb","block_type":"box","text":"appreciation in the underlying asset.","page_number":38,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"4c225867-5ae6-4102-9311-4a85bfefe159","block_type":"box","text":"Precious Metal-Related Securities.","page_number":38,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"4a7bbfe5-852f-4336-83ed-f78fefa9b0bc","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":38,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"8fbbfc9b-c496-41fc-b220-f151805df204","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":38,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"8ba7a351-5203-4b6d-a558-24eef5fd844e","block_type":"box","text":"e.g.","page_number":38,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"4bffad5d-3a7a-4afb-a3ab-f527070bc55c","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":38,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"b9aa8bd5-d29c-43f4-aef5-112be32d5276","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":38,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"6412c27c-0b05-4054-94a7-ddb22e7bc963","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":38,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"c220c293-1d08-4416-8232-d069e14fedf4","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":38,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"ced83249-3811-46fb-bd4b-9034291b88f6","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":38,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"fe88093d-7a8b-4df6-941c-8619704acd74","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":38,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"957a1d7e-14ef-4255-87ec-0b5661cf46b6","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":38,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"6530f388-6e61-4fc7-9125-81f858f90116","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":38,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"ac53420b-0ec6-41c9-8d44-fe8f9400ec28","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":38,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"df239ba1-9648-4fbe-86b0-52dc01b28e87","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":38,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"f4909d75-ddb9-4357-9a13-f031bc6e2300","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":38,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"5fbfa37a-afe5-445d-892f-b24aab1086e9","block_type":"box","text":"South African gold production.","page_number":38,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"0c8f63cd-260e-4fd9-a795-ff5ad6fea0de","block_type":"box","text":"Borrowing and Leverage.","page_number":38,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"07ddce9b-8621-4f04-ae57-6040f5a95701","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":38,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"a6a86ff4-19af-457e-b32a-5211d2061d97","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":38,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"8bd9a516-91ab-40b1-ae23-e8fc8db1bf42","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":38,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"3f12f6fa-6e9f-489f-baa5-02f294a06879","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":38,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"41bd23cf-8ecb-4061-88c1-f1b8ef5765d4","block_type":"box","text":"other securities transactions.","page_number":38,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"8f5082ec-7c02-4d28-8e3f-43debcdff976","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":38,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"69d3441e-7ba3-4f57-a368-c688775daf04","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":38,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"82fab8c2-152e-458b-833e-41d2d6172019","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":38,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"ac72bff5-9555-49e0-80e4-7c0eec9f6f08","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":38,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"0ea98a1d-8905-4bb9-953d-57ffc6ee5291","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":38,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"4ed5e08d-e0a5-44f2-bb89-4f25db16332b","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":38,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"6b27b2af-e1a5-42c8-b97c-a059a504ae29","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":38,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"0e6aba07-e1e1-4552-ba36-bc3e27578feb","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":38,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"310296bb-4d37-401a-8781-422f42ae4bb9","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":38,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"3297a923-75cc-4d4e-89ea-4669dfab3bbe","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":38,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"44ac8ac6-fc78-44a2-bd08-1442a8674741","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":38,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"e5f28200-4698-4977-a4e7-f041e774bd45","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":38,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"24f17ef0-f52e-46e1-b84f-02b37e5acc1e","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":38,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"2e5f014a-3014-47c6-a2da-52fcaa01334f","block_type":"box","text":"II-2","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0cc2a2f1-0a6a-4292-9285-9668e51519fe","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea9e58a3-a102-4f20-85ce-1a24b3ef353d","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":39,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"e6362a0d-5303-406b-b8bc-1b1320d6c4ec","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":39,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"c51bbfc8-d9f1-4b5d-a144-cc83ee1f049e","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":39,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"7640b236-658e-4f16-abce-25f1f519484e","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":39,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"d3dbd921-f0c8-426f-ad74-11f4fadc4fe6","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":39,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"50c105bd-81f4-43eb-9902-0818db1ac419","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":39,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"9bcca721-9b46-4ff8-bab8-bc3e9b101d76","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":39,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"4a6d74c2-55b4-4236-a7ad-1d393d51b657","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":39,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"4c06e810-9afa-4f7c-8689-13e6d1bf41cc","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":39,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"b918a373-f2d9-497c-83c9-d438d337723a","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":39,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"e850a3e2-53ac-4307-9faf-68d32c8ef54a","block_type":"box","text":"Cash Management.","page_number":39,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"bf45db78-37a8-4833-bdae-0fd356f3c5e5","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":39,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"a991037a-64a7-4513-bc42-6b562309c3d9","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":39,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"a5c3fce0-7676-4011-9369-9718ed40f90f","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":39,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"8df89636-2ede-48be-ae9c-39d481de6eeb","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":39,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"72f37399-292f-48d6-8cd0-98acb57baa79","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":39,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"3abc8bf3-1248-4048-a7bf-6cc60ff01038","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":39,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"17de2bd5-21a0-4426-8669-218ac12c7239","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":39,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"3a54d34e-6fc8-4d7d-aa60-39dd121cd0a2","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":39,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"8a68ccf0-9f41-4bc7-90c6-af9314b10989","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":39,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"90f5f6ff-e677-4e2f-a43a-38e79ccfb5e4","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":39,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"e97bd9dd-95fc-41c7-9ccb-289b8195efb2","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":39,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"3e4d026f-ea8c-4cac-9af7-2d1507743b4f","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":39,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"9729dbbb-f499-4dd8-9323-948b79b3202f","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":39,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"1f8fdea8-f664-4b1f-87da-b48bd7cadbc6","block_type":"box","text":"Collateralized Debt Obligations.","page_number":39,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"cf97d900-3762-44f9-99ef-241315a27569","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":39,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"1f7119a0-9012-4c0a-b677-d2d787da8197","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":39,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"df0ab4c4-27cc-4f5b-b871-9619bb45a78f","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":39,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"a5ce76b7-619f-413c-9d5d-ee01d1c3b0f2","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":39,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"5b00676c-7adb-4d61-b2cb-90dba897fefe","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":39,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"aec3bd38-eaa6-47d4-a309-dd3b7142a731","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":39,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"602f8125-5b07-4632-baf1-251dc3b1e518","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":39,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"00ccd1a3-f910-49c1-ad15-a7332d9aa7a0","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":39,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"c64b9b5b-157b-4ef7-b9ab-2cace95ed627","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":39,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"c71af539-ae88-4b5f-9d90-1e2df203e32a","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":39,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"3802ff28-e0bf-45af-beb9-c44ce76c8398","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":39,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"2885f308-b13c-4943-9cff-280e335f8741","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":39,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"19dcb95c-fc8a-4a95-8774-b567cc016c20","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":39,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"b82824bb-9023-46e7-b0d8-ed00c2dc4f34","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":39,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"da256278-3cc6-4dcf-b4fb-4ecec1292e49","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":39,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"350435e8-5128-44ae-930c-97c2f595c960","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":39,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"fd78b738-4f08-48ab-93a0-df0f9e7c7c58","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":39,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"42b1e102-15f4-4f66-9f3f-10b9636f2f58","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":39,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"2d843ee9-7cef-4627-ad87-e456723ab150","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":39,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"7180f564-3b9b-4e41-8f7f-da24f66a7db2","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":39,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"8d041458-da0e-4660-a3d9-da3f675558d8","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":39,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"7abaa3c7-eaf5-41aa-8b3d-f0030a301ebe","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":39,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"18b093af-0d17-4286-9e76-5e666d0b83ff","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":39,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"9c1d1513-68bb-4340-8815-a743671ff701","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":39,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"66672025-7584-4d50-9879-99ed97fd1a72","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":39,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"7a1a4d84-e236-4f2c-809f-b4c63cf535b0","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":39,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"a7a1b5f7-6aab-459d-8e83-0987ac1d73a6","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":39,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"78c3a9f8-59b2-4d7a-9941-daae170e6d68","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":39,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"e2c89ab8-0eb4-4ff3-aa68-e4c5f4aa62dd","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":39,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"775385e2-5d7e-4777-a076-26ac90b50574","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":39,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"b6c4bf5c-1e48-48f7-87ef-ec0d3d7fd262","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":39,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"5b125790-fb80-48ea-9015-07dcc9edd5e0","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":39,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"ec5309bc-a282-41d0-bd8d-47af52ca2650","block_type":"box","text":"II-3","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ea698f97-4c6e-4bf8-9c89-1dde0ccac619","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6df95d0e-8684-4217-a7fe-e807e87d8809","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":40,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"10678f5b-5880-4d4a-9da9-f86f022383b9","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":40,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"f1620620-b52a-4fcf-8e49-2d528ba9a640","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":40,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"ac039e9b-f89e-49c0-8702-ff3cbf5ff2ab","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":40,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"8ebea262-9e5e-4eb6-b801-9d1f433f4ebd","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":40,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"ea887109-85e7-452f-9746-cbf2e675a5a5","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":40,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"342c05e7-36fb-4bc5-8da8-414ae1266c11","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":40,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"93689868-c7f1-43ff-a2e8-dcc9edaa02b9","block_type":"box","text":"Commercial Paper.","page_number":40,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"005568c7-5f64-4748-8adb-34a2a4000cb9","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":40,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"0fe38dd3-6453-4499-b4b1-5173f778d89f","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":40,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"4fe69b31-f6c9-46c3-a7f5-090b2141069e","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":40,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"3e0d1771-628d-4161-bb4d-d9c854b9311e","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":40,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"c41197bb-f2ef-4b8e-9e05-f807dcda52d1","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":40,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"3417b93f-2f08-4613-b7f4-427966ba03cc","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":40,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"465bdf9c-da53-4bea-ad49-c0225daa804e","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":40,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"5620ca35-6cbc-4797-a211-69902bdbdf11","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":40,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"3644fcaa-4e58-4e14-8a1a-756f050727ba","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":40,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"59f2f369-54dc-45a7-a2fe-af93ececec5d","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":40,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"9ef6b4eb-2ee2-48cb-8069-88d5f7f7fc88","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":40,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"3af52f0a-f246-49cb-84b3-aa369c1237db","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":40,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"e37150dd-cef7-4f1a-9e53-76c223a6e980","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":40,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"fc28f6b5-b6f3-4153-a3a1-f44d9fdb27ee","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":40,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"6d82c373-0ea9-49b8-8fef-d5685db4f42d","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":40,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"e1053a83-9f19-49cf-9f6c-884ef861dc47","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":40,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"d63144ae-91bd-4071-a9b0-6dcf1399c72b","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":40,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"348c1316-3e9b-45b6-b8f9-53a2c0e84f51","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":40,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"8dbe9fe1-590d-4b4e-b02b-d719f89ec3df","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":40,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"2e40dc05-480f-4dc7-9ecf-8395f753d13c","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":40,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"5c1153a9-6acd-4d43-a330-cf6d1b205057","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":40,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"c596d39f-bffd-411d-8c0f-de4fc51bc20f","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":40,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"cd5628a7-f272-4488-9366-7495c5a01f73","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":40,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"9441c76d-e56f-4dc4-91d5-71b369476340","block_type":"box","text":"variable.","page_number":40,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"e64fcf1a-f57c-4523-95c9-3615189ef478","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":40,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"611ef01d-b49d-4972-bed2-4b7113dcc15f","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":40,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"3b954f0f-cad7-48a0-9c2b-d1164e267fa8","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":40,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"f24e0aae-ffc5-472b-b107-593d5780d59e","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":40,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"d7573a03-58ed-4acd-aab3-c8b812c6d347","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":40,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"8d4d5d95-1456-417b-b4d8-aced5beca794","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":40,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"71c452b1-c903-43fd-8176-08eb0ff2ecce","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":40,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"7a8f1073-e47b-4005-a19b-83b3e347acf0","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":40,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"f9c3777d-22f2-4dd8-a814-23bbd0b67c90","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":40,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"7fa6f5a5-5520-40f0-ac4e-e33542ff240b","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":40,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"6b379a1f-43a5-492f-8731-ae4918e35c48","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":40,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"479b7206-9d42-4384-b1f8-624f0a0b4cd4","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":40,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"34a42166-2034-4954-a1be-f4dd4b2c48c1","block_type":"box","text":"correlation with stocks and bonds.","page_number":40,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"c2ce437a-266d-45b4-851e-ca1ceacb7bf3","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":40,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"08bcffd2-d3bd-4903-ad6b-8a0be5c3f590","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":40,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"cec554ab-9542-49c1-b5ff-c52c40be4b2e","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":40,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"85299278-c295-48fb-a3cd-1c91617fa01d","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":40,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"f18f91a7-f922-4366-b288-5058b2150e58","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":40,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"3ead5eb7-9155-4e01-9b42-5a0e0e46622f","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":40,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"4f0d279e-77f9-4637-9ddf-85f7d1f9fb51","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":40,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"34cdd6c7-cb37-4ccd-b57b-1b6b33bfe526","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":40,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"52733568-f16e-4a7d-aed3-e804aed1bd3c","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":40,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"66311b9d-8b2c-4b4c-887c-24e090275d79","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":40,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"59072ce9-dee2-418c-859a-72600033d486","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":40,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"aceaea3c-4e96-4d94-a8f3-4c3d6509bb5e","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":40,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"9d5af745-2dcf-40cc-b237-a18f3803ba6a","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":40,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"7a2f3bc2-ecc0-43c9-baae-ff6a7d10acaa","block_type":"box","text":"II-4","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"acd17603-45a9-4bb4-bdcc-d94a9a74377e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"756f8832-328e-4450-917e-32f015fd5162","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":41,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"09db7366-6026-4b34-9750-60a7dfbafa1e","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":41,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"69bdf58c-d5af-47f3-9135-2260a54284a6","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":41,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"3d1dc41b-cd4c-4d9b-b3df-ca36f5c958bc","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":41,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"128650b4-d0c6-4a17-9fc3-889dd9020afb","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":41,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"60c3ffb7-1a28-42b2-99aa-d0b470cc4c13","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":41,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"79b7af33-c5e1-460d-8634-77f32eb789a4","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":41,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"a07d4301-4c50-4fb5-8485-a03c5f20f91e","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":41,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"bb7393ef-23d2-442d-a7b6-b3d9d76666e6","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":41,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"ba1d7c26-630d-4baa-8b97-39dd77eeafb9","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":41,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"460458a7-d1e9-409d-89d2-0434bad32c6a","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":41,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"83c724e5-ad68-4400-8927-21d4e2295133","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":41,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"2b4f050c-0a9d-4092-a89e-5b09d3e3f09f","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":41,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"67314bad-58b6-4905-90b3-30f86fbd15f5","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":41,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"4a671536-f465-4ce6-8cba-f671b9874aff","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":41,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"bccf06cd-35ad-440a-8ee7-fa231ec86942","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":41,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"2518d9a3-2146-40a8-b0c1-a2495aaee199","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":41,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"eeeafd41-75c2-4b99-9438-dce06cfe123a","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":41,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"3ec4737d-c72e-41a3-bd71-27ed076bfaee","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":41,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"c33e996c-7300-4c99-a52b-20ddc7eebc8b","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":41,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"8089add3-b179-443b-8fcc-1c0b8f9d0469","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":41,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"a949e873-91d4-4996-bfb3-fdbdd3216ab8","block_type":"box","text":"the Manager believes are relevant.","page_number":41,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"19d96cbb-e927-4c18-8431-f43d12a3f6f4","block_type":"box","text":"Limitations on Leverage.","page_number":41,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"b8633053-795c-48d6-b73d-2034cec39c6a","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":41,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"3a1b89b9-715f-4c4e-8b76-a3a8b44b58c6","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":41,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"e10636c9-0204-4677-b9f4-91bfb8ee4804","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":41,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"b67b9b5b-4107-49d4-a555-5a06f421a25d","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":41,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"c44eac96-09a9-4ceb-92b6-7f284829b2be","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":41,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"8496c7da-1594-4260-8621-ad89caf52a27","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":41,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"39094c37-8850-4410-8d7d-32e8b824b473","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":41,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"8c3ac198-0b0f-461a-9212-9eb929dc1806","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":41,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"78bc0265-81e0-4cf7-b7c2-3107f645efbc","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":41,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"8765afef-08ab-4019-9e72-893904eb444c","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":41,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"17ff5b77-6c62-4d65-b4bf-0eaa68b01dc3","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":41,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"3e4db247-c943-4955-a277-559c9b83913c","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":41,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"940c983b-f2d0-44c2-be1d-0d2332c150f9","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":41,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"363d8ab8-1a45-4a14-aac9-75887ed9876c","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":41,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"cecc7d38-f545-4644-abbc-7d58f653bdf2","block_type":"box","text":"Counterpar ty Risk.","page_number":41,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"2e543498-3887-40f4-baed-5739ba306ae2","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":41,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"87e06252-5dbc-47a6-a0f8-1558704353b8","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":41,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"8c0920c8-592a-4c87-8607-31a7923ad828","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":41,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"23b18f23-c3d1-4d53-a890-dd34f607377f","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":41,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"d1374d0b-e76b-497d-81cc-d9dc38f71783","block_type":"box","text":"e.g.","page_number":41,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"f772af26-82a9-4d9a-9d9d-47e79651aced","block_type":"box","text":",","page_number":41,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"753e7c33-4247-4251-a594-6d1751c1548e","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":41,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"01b1dba6-729a-4f6d-80d6-6b288393ea09","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":41,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"fb06e543-bd84-4908-a500-1978a711b2ea","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":41,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"674e3c8a-a03f-479c-ac34-ae6579f65a1c","block_type":"box","text":"obligations under the structured note.","page_number":41,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"2ef471fd-108d-4afa-a44d-e59f5f5eba66","block_type":"box","text":"Convertible Securities.","page_number":41,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"97673c9f-8205-4b05-88a4-3ab1ecb09c51","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":41,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"a2316b00-420b-44f2-af67-ae606bd4ae15","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":41,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"36705259-6760-471f-b97c-fecb93d24942","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":41,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"6ab91666-f189-41b4-9cf6-87ccc5c93d0e","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":41,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"97e84672-5cdc-4474-91c8-5b8ef34cbbe8","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":41,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"370ca6d8-5ad5-42d6-a6ea-e6db2a222f9c","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":41,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"c9f9a13f-1b23-4630-ae3d-d36deb6e3100","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":41,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"37ce1d30-e333-41c4-b2de-a63ef757926a","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":41,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"cf50ab51-c499-4a83-ad3a-11eb1b0e83aa","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":41,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"63c82ae7-5eda-491e-b654-2e10ae605dbd","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":41,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"89b5f368-f27a-4a91-b1c9-a089716f043b","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":41,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"9e4fbaeb-99ce-4918-a274-4b7423b8fc48","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":41,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"ec699aad-e4b7-432c-8767-84237f6e38cc","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":41,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"d6325ca2-1a81-40f2-a39e-8377adf0d829","block_type":"box","text":"II-5","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"728261c1-b52c-480f-b5e9-336f77d7cb2c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"79b9439e-83e1-45bd-a926-877ad46316db","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":42,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"5d958ef1-e93e-4aa9-90ad-ca32461d73b2","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":42,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"1ce7f9c9-f0e0-44fd-88e4-e6f4e01dd6a4","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":42,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"81b9d3a2-555b-4d83-8ff4-0e674c5230c4","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":42,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"a8dcf2cb-8837-4d05-a074-bcc4e427436b","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":42,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"3897d8c5-485f-4f6c-bac3-da6717c8b1bc","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":42,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"c03b21b5-4185-4b4e-ac09-ffdd311d5425","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":42,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"094f0637-d562-4318-ae11-575efc8ef306","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":42,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"9ef48607-6cd4-4056-b11b-3c84fc66170a","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":42,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"679ef2de-ee26-4844-a7aa-2c6f3fbaac6c","block_type":"box","text":"things.","page_number":42,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"830517e4-a6cc-4909-9f20-d2d40c1eab17","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":42,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"d40b5e29-64dd-4b98-80b8-722fc42b32dc","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":42,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"bd624cab-366c-4258-8fa6-a88c2643fcf9","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":42,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"cd9bbfe4-5846-4242-ae6b-cd7ff6311c77","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":42,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"33ad96e2-ee3b-4ba9-b76d-bf46fbe06068","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":42,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"b93ed8b3-7175-4e19-bd9b-b3eb14778bb3","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":42,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"cf53b91c-2613-4911-8e2c-f1fa154500e5","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":42,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"ede0c4ae-5400-416d-a5d2-89d036009bc7","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":42,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"7528434e-c0d8-4ad1-9d7a-863f66b59ce1","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":42,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"2effb519-5b88-4b27-92f5-069db75dfe7c","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":42,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"958b0f37-0460-40f7-8b3e-8213d8522c46","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":42,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"b9dcd50a-50bd-46a5-b012-1a33873638e4","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":42,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"81db9cf6-a7c0-40dc-9b97-f80a6c483807","block_type":"box","text":"i.e.","page_number":42,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"d9d66a76-5b29-4ab6-94f8-703591a91343","block_type":"box","text":", strictly on the basis of its yield) is","page_number":42,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"8012764d-97c0-4ecd-9e32-b3713ff4d4d6","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":42,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"fd7484db-d1cc-46d1-baec-f86de40ab37e","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":42,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"ffddda9b-29b3-4799-9c64-7698a2008b88","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":42,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"2b96d842-8cc3-41b7-9732-7dfe416b87ca","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":42,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"8a2df440-3569-4738-ad37-33e3a7bf8f09","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":42,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"a81c6840-2b5a-45ee-830f-1fdab4f865fc","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":42,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"49259ef6-adb1-4ee7-98dd-ec5760a546a6","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":42,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"f3483243-8492-41e9-9ce1-6e63b06e3c37","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":42,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"fe5d9e04-3509-4d42-b050-5a9eeb7295df","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":42,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"a493f85e-e869-4313-bf87-69b498c21157","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":42,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"275c7f19-7ae8-4f86-8a87-10c3c08b939c","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":42,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"e6368897-7468-4f67-b5f2-d88a3fa5c952","block_type":"box","text":"than the securities’ investment value.","page_number":42,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"027444ca-2e7e-4696-8fd7-3036b4a738cd","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":42,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"641b2358-0808-42d7-a50f-27bb128af7be","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":42,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"6bd98924-669d-4ebc-8373-8ee9ff98a4fa","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":42,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"a75748d2-6413-4144-89d1-3fdf857bb08e","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":42,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"807a5095-cd7f-4df7-a388-37a0adbdee2e","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":42,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"10c0f565-8489-451a-a771-63d1ebceffa9","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":42,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"24865589-6f35-4305-86fc-3c935997c7c1","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":42,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"b374ef29-7b3b-487d-a6cb-7a944857db62","block_type":"box","text":"security under certain circumstances.","page_number":42,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"ecadea40-6d34-4382-ab01-a318c83b1693","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":42,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"4568bd96-95e1-4033-a127-34a79a32bb6c","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":42,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"8d8d8a7f-f1fc-44e9-9a03-58e400efc71c","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":42,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"d19a87ad-1893-4a6b-af24-7b8718eac708","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":42,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"8e0323b6-f075-4ecc-a7c7-d6caeb9b1650","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":42,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"9c12c1d7-29f1-4a98-8ffa-f50c6582c8f6","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":42,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"3ac8c7d2-353b-492e-8188-d7653b26b827","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":42,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"fdc0277a-4b3d-44da-84bd-232e243ec43a","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":42,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"daa310dd-12ad-43a2-a995-fac57846c462","block_type":"box","text":"i.e.","page_number":42,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"9619df71-9f32-49ef-9fed-514b65da8b13","block_type":"box","text":", fixed-income (“fixed","page_number":42,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"fddfd1a3-cc78-4953-80b0-4889fea5fbaf","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":42,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"09b0d4a9-f03c-4c00-ae3c-90990793917f","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":42,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"d7b271f4-8313-491c-af62-3e0d6e1c2a36","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":42,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"b34f398b-0667-4919-a848-3d0ce331c78e","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":42,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"6f443701-f39a-40a0-b41c-936fc6f88abe","block_type":"box","text":"II-6","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"06b02c6d-46ef-45ce-8364-4ddb0967ffeb","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd65b615-693b-421c-9f51-d31943591d66","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":43,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"8be65f02-e17e-4ded-ab19-4c485fa5ccef","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":43,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"8b600259-982b-4fc5-816a-84e247f0233a","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":43,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"e971f6f3-691e-4a84-aba3-71f732e9187b","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":43,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"df985038-edbc-44af-abd5-c8cb96bb78a9","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":43,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"d3e07785-f637-4b2a-88a6-c71a28406106","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":43,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"4d7f46d2-a439-4642-adeb-5ea9f8c25ad1","block_type":"box","text":"component.","page_number":43,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"ea0d46a4-4aab-4939-9313-c598309aa929","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":43,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"023a1f7b-13f2-465a-9ded-1ebf36c34232","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":43,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"f32020a7-63ec-43b6-9ba4-10f6eacfb7b2","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":43,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"fc9a7011-d402-4a3b-a57c-9f06d1721607","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":43,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"174db2c0-b748-4c64-b0b7-6c73293279d5","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":43,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"8ae17ef7-fbef-44c8-985a-5e1d25564509","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":43,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"293bc0cb-a927-430c-8896-709f6745bac3","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":43,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"f836b9e5-ac1f-4647-ab1a-ee1599aee8af","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":43,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"edfb446f-478c-4bcf-bea9-730cd98fad8a","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":43,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"6bb10a30-b89e-48c7-a0ab-55d974c817da","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":43,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"cae9bebb-7a0b-46c3-b7fb-a514efd32745","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":43,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"b013b102-7a83-455a-bd29-26b2f3ceddc2","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":43,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"805837b9-7250-4acd-9823-8160ad35a559","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":43,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"c472fe07-7e12-4a54-bb3f-78142498941a","block_type":"box","text":"favorable market conditions.","page_number":43,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"d2f3c778-cbc1-4c08-9e45-15ae35c4a749","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":43,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"ef36e584-9349-45d4-bdfa-06db9a5e4bd4","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":43,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"32125f36-42ce-49fd-ab7c-3b160c3360fc","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":43,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"ddea9924-192c-48c9-930b-0271831849ff","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":43,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"5148293f-63e6-48f8-86ed-1ed368379765","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":43,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"5fee4b39-cd95-4d92-8bf7-729027d1bf30","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":43,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"12f0c349-220d-4af6-bb67-4bd703c98c4f","block_type":"box","text":"Corporate Loans.","page_number":43,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"82881467-441c-4607-bb24-0fcf413be675","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":43,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"163d050c-fb98-4f6c-9cbf-72d6d255a85d","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":43,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"3767f482-f555-4f03-8d39-b48c167fbdc8","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":43,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"a29095ed-47ea-4e87-8dff-9d607cd49816","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":43,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"a5c122a4-46fb-418d-a393-f34e01bcbd8e","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":43,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"642fd156-37ac-4bdb-ba36-29ceb82e18d5","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":43,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"adfaaf4e-aee8-457c-8592-dab90d8f0dd4","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":43,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"c328efc5-127e-44e8-a0f7-2b3e26e90a5c","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":43,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"e5b055ec-05be-4818-a642-3b1f0ec15292","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":43,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"5ac922d2-ff4c-4b92-9089-e28871b011e4","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":43,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"501d605e-7397-464e-b89e-797f700c93f0","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":43,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"10b4da92-a299-419e-864c-2abb1711b5e1","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":43,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"ac32fda2-036e-4729-affd-723b5d0ac37d","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":43,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"d9fb45a4-69ab-4bf9-b28f-75b95739378f","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":43,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"64ccbd63-12eb-4f1a-a0d9-c38e7e1a051b","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":43,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"832dd853-ca27-49a4-ad8a-abf07c15da61","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":43,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"caab5310-f8f6-4a7b-91d0-911e5319bca2","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":43,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"34d13f5a-e3da-4c18-856a-7e846a46fb60","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":43,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"a87efab8-9fc5-4a19-9161-583d36f99cc9","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":43,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"6904908d-74cd-43f9-8aec-8bcbb3696dfe","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":43,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"6ad8ea30-a79e-422e-be67-25fb5fef1b0a","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":43,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"0abd9b3a-7b1f-495c-aba5-9e0a9f4d637c","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":43,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"f057a855-3e89-495d-bdde-2ab708f9616e","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":43,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"86521c8d-b86c-4908-8cf7-ae99ede10c67","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":43,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"e7e56e61-4a69-4324-807c-682f4fd55554","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":43,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"17cd30ff-1096-4a1c-bce6-6e1194c7fd40","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":43,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"81b18c77-705f-4296-9ee7-f6d0fe234c3e","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":43,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"f4b4fdda-40d1-4fbd-89a2-c199774dcd74","block_type":"box","text":"of the borrower.","page_number":43,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"8789174f-8ec7-46df-8447-3b99a01e185a","block_type":"box","text":"II-7","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"65756e4f-b1a7-4aa1-b6a7-bf6842d39c1e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5c1b53a-d28b-4caa-b6de-d92dc2efe271","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":44,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"a07df4c2-0aa5-4533-baae-18f2ffffca84","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":44,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"8320f019-e476-4821-95fe-5de65eba87c6","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":44,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"28fdc1ee-25f8-4761-bf0c-0b789ce3abbe","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":44,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"7460ce20-979b-4214-b951-0f6fa047566d","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":44,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"b9c348a6-d667-472d-8319-01f3b2320b62","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":44,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"55fe7da7-c0e0-4296-8f83-6532db65c14d","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":44,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"beba45f3-32d4-41ed-93c9-8fb739c17456","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":44,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"8c073492-5e37-43dd-87b1-0aa94a1e1a56","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":44,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"09ba8d64-c6d2-4b56-a5c0-1a593efadbed","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":44,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"57ad5e1b-5ae5-4788-96f6-b4de7e44f588","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":44,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"ec129050-62be-4e39-9756-5144ddf03ad6","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":44,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"353184fb-5ff7-414d-ac7a-2046275be65c","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":44,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"31ed5480-97aa-4530-95e2-31493a198821","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":44,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"26b84f68-9ae3-4c93-8989-6cd0ef424298","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":44,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"e4c1c06d-9c21-4cee-ae5b-53322ccf06bf","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":44,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"9691682c-be18-4c61-adf2-0da4b0b5a4a6","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":44,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"805bd8b7-e9d9-4dd1-a339-19c5b6ffd0fc","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":44,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"acb65df5-cd69-4dd9-af3f-5e12c1582393","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":44,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"01624c3e-30e8-4459-8aba-7c5711c697f1","block_type":"box","text":"state law.","page_number":44,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"dd5ca818-6fbc-460c-bd86-6d6309f1936c","block_type":"box","text":"Direct Lending.","page_number":44,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"3f2c6093-057c-41cc-b6b2-e4d50e236279","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":44,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"d053c87f-84f4-4b99-af10-9a7e0d3a80f4","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":44,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"545fd5d7-d91c-4c12-889c-5f1bbec3299d","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":44,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"1546c481-859b-4a43-9d94-7fed86efee58","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":44,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"ba3f452f-040d-4f50-975e-3ace05350e15","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":44,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"93994120-04f7-4f64-8aa9-686670f157de","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":44,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"9941306c-ddab-431f-9dec-aeda7ae4cefb","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":44,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"64b26f97-9e82-47d1-ae4a-9997cf944f3c","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":44,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"5d91e108-ad05-4f17-afa3-750932631f93","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":44,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"7edb31af-bbeb-4d43-9613-c3f2b29a344b","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":44,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"7a034c4f-19f1-4366-85f4-42cfb911f0a1","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":44,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"c699cb99-20f8-4397-b1a6-710a20efa5fe","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":44,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"b2143115-22c7-4cb7-9245-66c93840075b","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":44,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"31258866-367f-442b-93ba-a6cf3061fc90","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":44,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"eef9cf47-098b-414c-ac3c-9f94530b71dc","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":44,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"e42a90a2-28c1-4396-85e9-aa8467c5794e","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":44,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"8ba321ed-7592-4774-ad1c-f083c9f0471e","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":44,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"9e1bd5c3-bb28-4603-b372-0572e090a8ac","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":44,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"000a5401-da94-4a1f-ab94-93c3fd999c6d","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":44,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"b5062bf7-eab3-4e35-842b-21a1ac85019d","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":44,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"ed4720e0-6a34-4703-bfb4-2eeab820664f","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":44,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"6d06ebef-8754-44f2-8ec9-22ca526820da","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":44,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"d5e360e4-db9c-48d2-85cd-80e4b44d41d1","block_type":"box","text":"Credit Linked Securities.","page_number":44,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"d5cca8a5-2a76-4a6f-8036-acc5c8242844","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":44,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"d2594abf-00fe-4708-910d-9dbb886f3f70","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":44,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"9b3c0c83-125f-4ae9-8d7d-2c7b79d014ce","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":44,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"48fb4613-b18c-4977-9cb7-af1ad3c15c89","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":44,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"20c7b617-de26-437a-a697-224e36f46bd4","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":44,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"96aa92dc-3e78-4cbc-b803-fc8bf3719cc7","block_type":"box","text":"traditional income producing securities are not available.","page_number":44,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"4d2e6373-444e-4759-bf72-c14d519915b9","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":44,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"8d9666e5-155b-43b6-9e4a-cacf88d0c21d","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":44,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"7905f065-3ef5-44e4-b486-164cf141024c","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":44,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"9322e969-38b0-4885-a28f-7f8c20361bc9","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":44,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"0c4a3bc0-ad68-4dd8-9a31-af51452a7c66","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":44,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"2fe27477-8b44-4e57-b031-be2e8e87895a","block_type":"box","text":"II-8","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7607907c-81e9-42bb-b0af-c79ce6d43d88","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"38c3b291-116e-4f29-921c-5de352b9cdd1","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":45,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"cdea06b4-16e3-46c1-8597-bb856341f776","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":45,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"16fdcdb1-0285-43f0-abe3-0d699027aee4","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":45,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"b0a43f76-a0a7-4889-8668-55c917b7a9ea","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":45,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"4559118b-8a75-4c31-9bf2-29eebcb34b3a","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":45,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"fddf5224-8560-42bd-871e-d2f0a21b5b54","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":45,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"bebb4b74-5853-4fea-a4fb-af561ce0c434","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":45,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"2114f6e9-15bc-4edb-af20-83aadd90e28f","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":45,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"f6a32efb-1dea-4b79-ad5d-c3a2ce4968a6","block_type":"box","text":"investments.","page_number":45,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"c7478613-1603-4c16-9c5e-5f7309bf635a","block_type":"box","text":"Debt Securities.","page_number":45,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"9e85e35c-e227-4a1b-ac5d-19ad8080ce4a","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":45,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"1287ee1c-208f-4caa-b3e5-7159fa06ffb7","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":45,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"2e9e0bb5-227c-4b08-ba5f-7ac0db55ac84","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":45,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"7dd7513a-4fd8-43e1-afd6-2e6840ebc619","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":45,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"31eccd04-f782-4af7-9bbc-e28019d2fdb8","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":45,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"145b7c18-b60a-4c2c-bb2e-55e65da02d0f","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":45,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"4fded779-7cc5-4ea4-a3f9-5338fe7bd556","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":45,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"04285d17-b9af-461a-9a4f-09f7a8e4d066","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":45,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"7be4665f-990e-4568-9370-adf2373d82f2","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":45,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"6aa08ff3-826e-4e40-af8a-b9f68284d725","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":45,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"424e3c92-b21e-40df-a17e-ee81096faacc","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":45,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"c4cac860-4e6d-4938-b901-8e6c41abfabb","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":45,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"503d4a89-5c1d-4e4e-8d4e-04a3b1e03ece","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":45,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"c15fbadb-190e-4f7b-809a-f066452a6e61","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":45,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"8c5c015f-6ecb-4f7d-8c69-41c8fb059dea","block_type":"box","text":"lose value. This is known as extension risk.","page_number":45,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"4459bd5d-a910-4924-ac21-60bb91803b5e","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":45,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"76b92ff4-9ddd-4640-8e8a-23342c4827c1","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":45,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"6f67c25f-f3a3-4a81-9dd8-36e6025c67e6","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":45,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"27fd1662-b047-4c8c-822f-a4cd699179d4","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":45,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"18d0ce1b-249f-45fb-be6e-cf942ef3f757","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":45,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"887ebfbb-9d59-4977-816b-bcb598bd334d","block_type":"box","text":"Floating and Variable Rate Securities","page_number":45,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"95f114c8-be3f-498a-941e-6c6080dab634","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":45,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"57742080-322e-440c-8a6e-a2aed06dd016","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":45,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"27030495-54f0-43f6-ac62-26c2b205f2d9","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":45,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"ecd05f43-adfe-4cad-82bb-6a9784b0d331","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":45,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"c2438c63-57aa-4b06-9018-ec0c39ac0f7f","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":45,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"33a07367-428e-4705-8b0a-5560ef2f5ecc","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":45,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"d7921bae-5885-432a-9cfa-c5a6cf40d6c8","block_type":"box","text":"market interest rates.","page_number":45,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"142f1ca9-e3e8-41a0-b6e3-6de879975b2c","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":45,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"4611b89f-32ef-4f63-98d4-926a7abba428","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":45,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"b2960c0e-ecad-4141-81cf-001f2a477d7b","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":45,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"1240021b-a482-426f-83d2-fcff00b882a4","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":45,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"d6695fde-c1a6-4fdf-9d68-03c5c9461af6","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":45,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"84863169-b15c-4997-b330-e05440b6d600","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":45,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"5ffdbfb4-9d81-4ff7-8822-c381bac88acc","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":45,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"21bd3de9-c294-4b71-bca6-04a2cd92c852","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":45,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"2d7c8806-a456-4186-8bf9-4874f58bae64","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":45,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"439818f8-f0b7-4397-90c2-7d8a63105246","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":45,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"9917aa93-05c3-4575-a085-5a4b8f27c507","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":45,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"2a430d52-ee95-41bc-b001-783463ee29f2","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":45,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"0237df53-e0a6-4ff8-a6fe-d3691500520a","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":45,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"b3211f23-5982-4b22-acdb-3beeec8b2d52","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":45,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"8ffe1a19-0e2d-486f-b199-e5fce435ff1b","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":45,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"099ecbae-fadc-44c9-a420-164d54c60206","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":45,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"7e82efb1-5c63-4fe2-b37d-718727d8298f","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":45,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"511cb01e-59bf-4a73-b4c9-ee71e8b2fc22","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":45,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"923971e3-182b-41e2-9a28-aa4073f3414f","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":45,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"d410e734-a260-4d9e-93c6-7246736388af","block_type":"box","text":"II-9","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1042147d-6fe5-4bd3-8287-74afe4027074","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0f9d15f-3775-4a71-aa4c-2ffe824db051","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":46,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"33603a3f-8533-43c4-87a8-fdff558f0e10","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":46,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"e370386f-5295-424f-93f5-bdf41ffe2343","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":46,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"438fec93-8ff3-4c49-a235-6de731de7cb3","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":46,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"86ffe22f-bec3-405e-9b5c-7e5fd5aa0677","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":46,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"3fabea1a-9224-4453-841e-bb43100b4934","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":46,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"5895e0ca-27f0-4f1c-9dc9-ea5c9d88f250","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":46,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"190af3cb-69bd-47c5-8e7b-f2d43a336ab4","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":46,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"6bfc0b63-1f29-40dd-9a92-f336ebce7800","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":46,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"f586601c-726e-4b00-8cd3-5590db0b104e","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":46,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"deeefc8f-c635-439a-9754-14234dbe220d","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":46,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"82276792-4f10-45a6-ba73-8be55cf28878","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":46,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"e2261268-9c4d-4db1-94dc-2c55d79451b4","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":46,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"fffb145a-6370-4aec-9553-6d6f32f42686","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":46,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"defcce7d-e53e-467f-9340-c00d0ddf44a0","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":46,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"78537365-6fc8-4476-9911-e54819d59c17","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":46,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"cf92e857-6020-4d18-9552-c86601648a3e","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":46,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"a63b3c59-8aac-44bd-aeeb-7c7abb29259e","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":46,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"52833d92-f15f-4119-9522-50fc31352cbc","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":46,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"b6ebc56b-ca07-4edd-8e64-1841ee2aa52c","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":46,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"c7649d8d-05d2-4231-a9cf-792eb1d5270c","block_type":"box","text":"United States.","page_number":46,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"74cfd741-f48b-4e1a-a2ac-98aa342774bf","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":46,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"19aa4af1-4a73-4eff-bcff-5591cf4c37d0","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":46,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"577214b1-b1db-410f-80d7-1b3a3c68c2ba","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":46,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"0b263881-15bd-482d-88de-3d3878775124","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":46,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"94d8c01f-e528-45c4-a34a-fc220bd9da27","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":46,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"7d0feb82-8047-4f64-8d65-f8ba7ed0333f","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":46,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"0f9aba3f-ee7e-4c72-8d9a-925a74d86d44","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":46,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"4dce3c11-f47f-47d0-bc2b-1de44a205cde","block_type":"box","text":"i.e.","page_number":46,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"c7ea4858-b69d-44e9-bc4f-b5659f93f4be","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":46,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"0105f901-6934-4f1f-a9ce-9e1d123b4fd6","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":46,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"8ca657d9-369d-4868-acb3-d2833d32f364","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":46,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"c23cebed-a1ab-40f0-a434-d83fca756f06","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":46,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"0e58aa98-3a98-4e65-aec0-b59a6c90ca78","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":46,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"710f2555-31be-4198-8099-3601fab3daf0","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":46,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"8e74fccb-1016-45f4-b9ed-43b853b6ae82","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":46,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"0ac84f22-a7b9-4b20-aba4-2bd02c0b7023","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":46,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"dd4d0071-29fe-4d3f-b3ae-23c1aab47ee8","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":46,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"201f294b-4fb4-4bac-b185-47e9d99d600a","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":46,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"2dec4280-e621-4561-9594-531458d46207","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":46,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"7ec8c82a-796a-4de4-be11-f5c87b79ab93","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":46,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"221e528d-c8d9-4caa-ba7d-e634c2d27886","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":46,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"c426a5a8-bcf5-483a-8de5-b34d65d0e863","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":46,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"15df9047-bfc8-4ef9-8992-4c3567c5391f","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":46,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"d0ad3361-50b2-43a9-9323-fd4519a21b4b","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":46,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"c147b795-0692-479c-9154-d8ca8e0ff58f","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":46,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"87fb376e-cdba-4c12-ba23-eb410b6bbb3e","block_type":"box","text":"risk than higher rated securities.","page_number":46,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"9290d18c-090d-4f1c-bd3e-1016a06cbf5a","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":46,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"c141b411-53c6-4564-bed2-75f564a58c06","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"3c043949-8bc0-4dc0-b08d-9686dc11f055","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":46,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"0b0b9bf9-eb8f-4583-88a3-c60e0cf14984","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":46,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"10faee53-5e44-4aeb-87d7-ffdab9fd25a7","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":46,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"d1bbe7ff-6682-4881-ba1c-1c66a2dd7434","block_type":"box","text":"unavailability of additional financing.","page_number":46,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"8b7743b8-d9a7-41e1-909d-7bb63a835d8d","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"d9e1120a-4a1b-4f50-bb97-9d03dc7fafed","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":46,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"82f7a457-7a68-4d4a-b836-4b6f2f90d340","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":46,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"efab8876-555d-42a1-a207-2330aac3ea4b","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":46,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"d5889e71-35d0-4e72-96ec-7d7aa35e7163","block_type":"box","text":"II-10","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7530976c-8015-40a6-9b97-18440713643f","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae4cf43c-72d1-4016-9a7c-68baa1405a72","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":47,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"4b144198-10b8-4c08-868f-cd1f473755a8","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":47,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"b0e6890e-f3a5-4c4b-a69e-12b8d6556aeb","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"f718db46-8b0c-4424-922c-6f616ddc1d97","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":47,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"2a00f8cc-2a7f-4c44-aa88-0cc806bc46cd","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":47,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"aa23cda9-c6f1-4197-b0c5-9ff277551da5","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":47,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"ea8e72a3-cf12-4208-b20e-6f9d86681c9d","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":47,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"9f106b4a-f870-4018-8632-c1e8f1f12bec","block_type":"box","text":"investors in higher rated securities.","page_number":47,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"34abb087-124f-4a90-a5c6-f168e094d997","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"63f3c7ff-1474-433d-a97e-2e01dc42ca19","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":47,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"b3b6201b-f109-4916-a1d5-ad67049373a1","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":47,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"cad6acef-c0a1-410c-a399-f3601d3c802a","block_type":"box","text":"lower yields and may lose income.","page_number":47,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"f6ff295e-44eb-4a5c-b9f8-f3e780773ef0","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"69fc4beb-eea4-4c57-a700-95e03f3faa01","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":47,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"ca510c62-4a54-461b-a5e0-39f8be60bb41","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":47,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"05f8327b-7abf-4d01-a138-cb0b2743af82","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"ef15e075-88f1-4fa2-8b28-58f11a2b28d5","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":47,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"d2d913de-219d-4f09-b75a-975492ceb6fa","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":47,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"b90f8924-4a20-4bea-a71f-bbf1c7943511","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":47,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"3d14bb89-6966-40dd-a121-54854351f985","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":47,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"25f3060e-3ea9-4d18-bdeb-93faed252f60","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":47,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"d427ff86-dbec-4caf-bb23-630d97a7318f","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":47,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"cb2086c2-0cb6-49bc-b38d-a0b969ac1e19","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":47,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"5c039ca7-e6e2-4d20-805b-61d92c31dcfe","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"fe04af1b-6808-4fc4-b0d1-d7805984135c","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":47,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"3ede7f16-aecd-49ab-a1f1-dffc2ab021ea","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":47,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"484b7cde-dcd7-4e41-adc4-9e9752454ba5","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":47,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"60eaafb3-00b5-4e17-88ad-9b3334af0f49","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":47,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"02654ff7-da84-4264-a471-c9865d6d21e0","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":47,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"8f4d9540-3296-4627-b713-e33686e560bc","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":47,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"1154b0ea-8ac3-4c6c-9db7-94e87d5c6ada","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":47,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"72705904-c29e-41a0-a9d2-d2ab73fc7b4b","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":47,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"c0599550-6132-475c-ae83-ac6b01cdb2ab","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":47,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"3e135624-0235-4c7b-a979-83548f37e006","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":47,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"4e3c4105-ea80-430b-aa49-c6c776ef4813","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":47,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"69b5bcaa-2093-483e-bc09-15e39d802bbb","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":47,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"1b71bf19-7327-47af-8074-1155a6cc0c4f","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":47,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"82232a50-c07c-4c2e-9c48-86e00c820109","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":47,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"d7655f7a-af98-424a-b71c-32237eee5951","block_type":"box","text":"role in determining such valuations.","page_number":47,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"0c440589-dd4a-4c2e-9f5b-c1ec496a67c1","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"a9519e18-6678-401f-9f1a-728341a75bf9","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":47,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"393b8e87-b64c-4720-84f5-3421d85574a0","block_type":"box","text":"a defaulting issuer.","page_number":47,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"73e69f4c-0ee7-421b-b03d-155fd8a80ab8","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"9cea6be6-389c-42af-b502-49cb6e48a646","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":47,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"ee9f06b1-8c00-4538-a531-af184b449264","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":47,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"ebac50cc-8e06-4c61-bd18-69b69c4ca63c","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":47,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"bd39fa41-be35-4ff1-b01f-0135d0d44a2a","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":47,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"5b1c4db7-9043-40c9-86be-10ec32024d9f","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":47,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"307de03e-88fb-45c8-8d3c-dd3744912232","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":47,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"abe9bb7f-4ce4-451b-a5f6-abd227900e35","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":47,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"7a567461-c8fe-4480-8b05-dbd5fc3da0a7","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":47,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"91b2ff86-2507-42f1-bfc8-41eab20ad590","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"283e8cba-adf8-4701-9f4d-05c2c54b0fbf","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":47,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"58e7ab1f-a1c9-4c36-bb6d-494e6421225c","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":47,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"860d7f31-8892-4d57-aab3-79c1a7709e7b","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":47,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"245afb79-e350-4e20-8712-63f74b8b622e","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":47,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"a3b67949-8888-47b4-9de7-aed9929931ce","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":47,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"6580fe9f-015d-4191-a957-287c1f74c332","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":47,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"bcbb28e7-b7a3-4b9c-9f30-61b08155c46d","block_type":"box","text":"higher-rated securities.","page_number":47,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"e8490970-d413-4ca5-8da5-73482a8c183d","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":47,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"fe6c8217-dbcd-4ad1-99ee-625a3f43990a","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":47,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"b384af2e-fdeb-4de9-9333-39320b4ebe85","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":47,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"4ab01daf-bd54-40a3-a3ad-99f1983b72d7","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":47,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"18c1ecb9-fc62-447a-8185-56b8cba9b0da","block_type":"box","text":"II-11","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3129b830-1812-4ed1-a73d-440dca863d12","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9dad133a-0b80-4262-bf5b-49a4db30605d","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":48,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"0fc4cd59-ed30-463f-8d42-3e421dcfabd9","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":48,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"c9c7906a-044e-4167-b1f8-080f3b8ec81f","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":48,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"205da3ca-2937-4b5c-8960-ec96d9a21ad6","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":48,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"52797173-1817-4cc4-ad8c-7578705fae04","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":48,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"b5959614-5ca0-4ecd-aa3f-e6b775becb18","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":48,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"2c8d3576-65cc-40c2-a047-3a9add7f8b8e","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":48,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"55ef30f5-0577-45df-9e34-597a41882a6a","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":48,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"76369a0b-378c-43ad-8f54-a1f768bf7ce4","block_type":"box","text":"Mezzanine Investments.","page_number":48,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"21fc3e0b-35ed-44fc-91a9-6fbcb8b5345f","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":48,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"c7c57b64-9dbb-4395-b36d-3b7159b186f5","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":48,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"e7ebf763-748f-4e9a-8613-f17c2430ed93","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":48,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"687bdc6e-5ffc-45ca-b6d2-8473aa033f46","block_type":"box","text":"e.g.","page_number":48,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"b65ee0fc-f668-4669-a2ba-97da7e05e3e3","block_type":"box","text":", with","page_number":48,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"75bf52a9-022f-4442-981c-78b91ed2c844","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":48,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"f9ee855d-318a-4baf-a266-ad7d02102575","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":48,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"faec1ca4-3748-43ad-9d25-5848cc9e1f51","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":48,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"535d0679-d002-488c-a135-20ab8e09bab1","block_type":"box","text":"other obligations of the issuer.","page_number":48,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"c8e9754c-14b7-422f-b9a6-81df2fdc6830","block_type":"box","text":"Pay-in-kind Bonds.","page_number":48,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"ffcabea1-0a94-43cf-9439-d628f64c3cc2","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":48,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"44e9e1e3-1ca8-450c-8007-aa0ea714db56","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":48,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"f610c6e2-311e-4655-9e9d-601e32c72217","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":48,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"e741244e-d41f-4dc5-ad3f-a7b6ac952417","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":48,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"8c554f0b-7768-4d06-afec-a51d08730d6e","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":48,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"4c1ec577-3cb9-4ef7-988d-6abf2ffbce7d","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":48,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"dbcc52bf-a7e5-4947-be1b-df365107672f","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":48,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"92ea9fe0-5c30-4942-8e00-829e702be51d","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":48,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"48d2ebdf-2e82-4699-9b4b-fca232d7a369","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":48,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"9bd46a72-2405-4e29-9b6a-8ad01d0828aa","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":48,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"97db2911-d4ba-4eb7-9dd0-d4b29fcdf438","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":48,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"f243cf7d-afd1-4087-bdaf-0226a36bc9d6","block_type":"box","text":"Supranational Entities.","page_number":48,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"05c9b3fb-4eca-4bb9-b827-2e6dbc0f2063","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":48,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"ba6007f7-e999-485b-b0c3-ff5ea365e3b7","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":48,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"78a8ac0e-4234-48b3-ac04-26395e7953ff","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":48,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"0d5a9f5b-f691-446c-8a82-2028b7e7d7df","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":48,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"3023ddf9-c79a-4948-a239-6b997e32da92","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":48,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"ad5f7a2e-dbc1-4f0e-8538-9e5ee9f634a9","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":48,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"b1861604-e3de-4104-a62f-adc9d8ab7c06","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":48,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"d1b4aa59-1f80-45c9-bc4a-e1a9985e0b98","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":48,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"570d629e-934c-4ead-9119-0d8e385acafd","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":48,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"08da602f-4541-4180-9c84-b45b90bdc613","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":48,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"f22089ac-0761-4389-911b-3704896e1834","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":48,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"ad7382ac-9c15-4583-abda-d3e68be9d239","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":48,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"a59e58b4-7294-4e1c-a224-e8bc4351864c","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":48,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"50e0e887-3dc0-4746-b831-979845fbebdc","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":48,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"ba84319f-89ec-4583-a075-a4013b8b0d56","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":48,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"aa2b4b1a-3758-4f98-8e63-a9df9e3f3c35","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":48,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"1775a5ef-d666-4759-a519-d7f3a5a40653","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":48,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"6b0a48d1-f5fc-4394-ae91-2352eddb4eb1","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":48,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"3e5c957e-4b1a-4216-a0c8-8e6a0c4a361f","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":48,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"c44c548c-a4fb-4c74-9f9c-61c4e0df01a4","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":48,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"701c8c7b-0662-4947-8fa5-b907f2f38c66","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":48,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"e4f23e9d-6bec-4b9c-b66c-521169b958f2","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":48,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"0a0d1de6-f279-4b8c-ba57-a5c5d4b79c74","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":48,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"9509e60d-0577-46b9-9cb2-cb836b01ba6f","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":48,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"ba6081e4-4534-46e0-91c6-25b1eb98270b","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":48,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"9d683f94-a539-43de-97fe-612964ea862d","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":48,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"a51dc2e8-f26e-4cf3-8483-7d8afd604d60","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":48,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"f1c92042-82c5-468b-a637-0149fb62579c","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":48,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"500dc32c-c697-498a-8fd3-d658387d4765","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":48,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"5d92124e-0fd8-4d6f-b705-40b646b0bf5e","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":48,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"776ba7fa-3edf-447f-918b-0567f67fb0ed","block_type":"box","text":"II-12","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"83a82f57-7f1c-4def-94f6-af477c7ac7e2","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"238fd21b-6786-40dc-837b-7f97ac6cfecd","block_type":"box","text":"Derivatives.","page_number":49,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"0037ffef-0653-43e1-8f2c-714c1ee09225","block_type":"box","text":"General.","page_number":49,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"58340f3f-34c8-4520-ac0d-7a540358a106","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":49,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"a06f5185-e717-4ad1-aa60-8e1999d11e0a","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":49,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"47a470fb-ca86-43cc-a682-fc38e59997f0","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":49,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"08769fa1-a2b5-404b-9bb5-026adc392938","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":49,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"40561df0-8ea2-4271-bfe8-bd6bf4e4b008","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":49,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"7285f924-ecf7-4ee7-b53a-f7cdbf637d7e","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":49,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"661bc2fb-a5ca-429c-9a50-860edc1ea0bc","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":49,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"619143ac-3be0-479f-b324-90fdc7c782ca","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":49,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"f6ccada9-90cf-497e-8e37-76c462a70c73","block_type":"box","text":"i.e.","page_number":49,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"ae7f1538-74ca-4516-9e47-1d7f6552bfcd","block_type":"box","text":", the payment","page_number":49,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"efcfae2b-b07c-4414-8c47-02275a6d0fb9","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":49,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"a1a6364a-d7b5-468a-9c26-1ed05948b4e6","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":49,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"2ba5255a-764d-450b-80fa-19efc4edcf7a","block_type":"box","text":"Hedging.","page_number":49,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"8e4224e1-ae68-4293-90ef-eb7a16a14457","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":49,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"5c2fef10-c5b1-4088-9b82-79c419018374","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":49,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"17f56ee8-d137-4564-a17d-a05f8a799f14","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":49,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"6959a9b9-3a79-4e3f-8f65-02744e1f51c1","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":49,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"0aea3939-e496-43bb-8da5-81b230f23614","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":49,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"c6f855fd-f1cb-4c54-85d1-08f7d0386c3b","block_type":"box","text":"correlation risk,","page_number":49,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"00254923-8171-4c3e-9990-1bd2e8749c48","block_type":"box","text":"i.e.","page_number":49,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"2f263864-28b6-4f71-9973-e6639111a236","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":49,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"3a07aaf3-b292-44d9-a7be-fbe432a40465","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":49,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"d6955ffd-5744-405d-a3f8-503e24a64c71","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":49,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"acbde602-a57b-4864-95a9-3a0503a89ca6","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":49,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"73993262-cfec-481d-80cc-d80a137e4565","block_type":"box","text":"Speculation.","page_number":49,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"0a480f19-bf4b-42b2-be67-6ba82d69a5d2","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":49,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"b01dea56-2471-4771-a81a-fae5c4fa510d","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":49,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"5e824549-06de-4288-884a-24511e60e20e","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":49,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"b849c47f-fe2d-48f6-a7ee-5421fd5683bc","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":49,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"d69fc21b-3a63-4059-bbd2-cbd2acd81aa1","block_type":"box","text":"in certain cases may be unlimited.","page_number":49,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"5f41f062-fa91-401f-8203-50167ece2e58","block_type":"box","text":"Regulation of Derivatives.","page_number":49,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"a3910f75-cbb3-449a-8b7f-334db315f78e","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":49,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"2dd0926a-887b-464c-8eef-b5dd0a3448ec","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":49,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"16335456-0674-4661-8055-7b362b44e385","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":49,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"d497d68a-97b9-465c-b71b-1ca045db8382","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":49,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"d2fde479-3586-4313-b886-c1048040f479","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":49,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"403b430b-0b92-4e5b-9c21-73b92cecf5ed","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":49,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"db1b8cf8-5526-48e1-8c70-19f261925e73","block_type":"box","text":"coverage”).","page_number":49,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"6ea2f9d9-08b0-4b26-86de-2fd6b40c6fe8","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":49,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"04c212c3-75ea-45c4-90ba-e0775dfee20a","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":49,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"ae85090b-00f1-4213-9970-30dc3e62db8d","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":49,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"035b31c1-e1a6-465c-ba32-92dac646b25a","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":49,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"19098e9f-7897-4ecf-88df-5245bc7cc823","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":49,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"5851002a-2c08-4623-8c4b-a81100d5f53e","block_type":"box","text":"financing transactions (","page_number":49,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"82b5d4bd-683d-4201-9626-e1a73add4245","block_type":"box","text":"e.g.","page_number":49,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"69ffe460-8688-4b5f-9637-febab85b24b1","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":49,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"1c82a39d-46ad-4acb-8684-d20dd2331f58","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":49,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"ff68582b-ae20-4b47-b0ed-a2c23b8ebf90","block_type":"box","text":"securities (","page_number":49,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"b27abf9d-ddee-4123-aa6b-1a4e1f029db2","block_type":"box","text":"e.g.","page_number":49,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"ffe9d2e2-cacf-4fa6-a0f7-91e781356b7c","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":49,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"61e17009-4443-4590-bf5f-7077c32f7c74","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":49,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"3ba459ae-4c8d-47fa-a068-831ff2b5ed62","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":49,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"33bbd3e3-e021-4ffd-87c5-1bcbfb54d2d9","block_type":"box","text":"Commitments”).","page_number":49,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"9b6050aa-7b84-41f0-987e-c7caab82768d","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":49,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"211839b4-6314-4cd4-89dd-c00ea050f7fc","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":49,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"a57f262c-3663-41b9-a1b8-bd2fb844a818","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":49,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"7e6c412b-72ed-4326-a51f-9e49a9acf96f","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":49,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"53c4ee56-ae2b-48e7-8536-5194d68ebcb8","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":49,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"70489867-fe1f-4cba-8510-f91bad9ee8e0","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":49,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"1502093c-786d-41d9-88b1-7492c9b6e481","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":49,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"878c384b-87e4-4c5c-b9ac-ec5cfea04a91","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":49,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"39423c0b-7106-452b-8cb0-5c04f067fdcb","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":49,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"eef34c14-eb4e-4057-8bad-aa6c432b734d","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":49,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"44f54161-2c41-4502-b530-b821448ea3d3","block_type":"box","text":"II-13","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e48eacd2-77e1-4b55-abee-03ef6ab7abf4","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05e5f35d-0f4d-43b9-82a9-84211e308657","block_type":"box","text":"Dodd-Frank Regulations.","page_number":50,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"49139d05-3c9b-4747-8499-4d79434d420f","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":50,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"fdbfb709-e005-42cc-867d-37de0d2ab8a6","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":50,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"09518d35-cf37-4e0a-9428-616c33fbe2a8","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":50,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"05148245-6594-4767-85a2-7449a6d25c7e","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":50,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"c6e65e0f-b635-4992-bcd6-ddf9ea927660","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":50,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"878b6d23-af14-43c0-9a8d-d7096849fba0","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":50,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"cbc7b372-5f8d-4f90-9013-70a00a819752","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":50,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"a2bba02f-dca5-4261-9df1-010b66b90b41","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":50,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"83bd603c-39a6-4448-a184-b6dd01c75529","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":50,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"f4aa498d-0437-4a35-b786-cee1c35a55a0","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":50,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"21bf69d0-eeb1-4db1-9490-2da8919f3778","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":50,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"712eeefd-22ed-4ffa-a244-7b42307b695d","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":50,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"61d5ee3b-1284-4586-8a7d-a994b7e3e37e","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":50,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"5f97e8d8-c047-463b-9f7a-f57cae24e249","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":50,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"ecdfdc98-e313-405d-9339-d97629a3a69b","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":50,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"93af52f0-a458-4eb2-97ef-86eca6a4c232","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":50,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"db24b69c-fa78-4d02-8020-b98add50ed71","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":50,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"d538b60f-94bf-42ee-b366-640757e000d2","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":50,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"db341fb0-fa79-471e-9463-7f1c08f41aad","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":50,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"43426900-1c67-4632-ad62-6d24bc21dc38","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":50,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"12e7aeab-e407-43c0-9eaf-50700af8b64c","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":50,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"46a8b407-0a6f-4b96-8541-8460fefcc08e","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":50,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"81da57d5-8b53-47b0-9c8e-ec349428e8fe","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":50,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"374d68e4-6175-40db-a9a3-d77eab099514","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":50,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"29a3a375-da53-43ff-806c-37114e8879bc","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":50,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"68ba45cf-353b-4da9-82ee-20145a767b27","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":50,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"4d2a3728-329a-485c-8ec6-9876ce3be916","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":50,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"0a9cf68b-3dfc-46fc-8414-5d2b63d0b1ce","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":50,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"acda8f1a-39eb-4cb6-b2af-4b9b731c97ce","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":50,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"38963050-89ff-4b3b-9f3f-a316f51dd107","block_type":"box","text":"member.","page_number":50,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"3f8a1e2d-e92f-4e67-b650-6de34590adf6","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":50,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"7e19a08c-707f-4f43-83f1-0ec08a5275eb","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":50,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"60a14c58-6ab1-4837-956b-8a857257726f","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":50,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"b904125c-9aca-49de-915e-b4c048da12c8","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":50,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"1371fb1e-906a-49bd-93ad-8eb260b156ab","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":50,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"74609d4b-b668-4eb0-b692-aeb60773904c","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":50,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"5e028fa4-1b69-4dc6-90f8-1ad611d7b4ff","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":50,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"51436008-2274-499f-b957-b3f755283b25","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":50,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"60b2d909-7a03-4d38-bd86-70b3a8eb9ee7","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":50,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"73f1c21d-2909-47bb-8a25-db12903b440f","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":50,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"d0107cf6-5cea-4346-ab24-c64f83367ca8","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":50,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"30ab766e-b919-43f2-a831-eb257ea0f9c1","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":50,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"bf3a515d-0365-48e6-b5d9-80ce6812dc6b","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":50,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"2b8b2af8-f6f7-466f-8f32-ce6edae8313d","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":50,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"f1edf0cf-8471-4876-812e-fc65cd160bc9","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":50,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"a9616d47-b8c8-42e1-a771-d9385a13f59d","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":50,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"9fc06079-3016-4c0d-914e-0c3f3f754bdf","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":50,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"da0d0f8c-6106-4392-b324-a140bcd0335c","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":50,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"bc60e8ce-055e-4c31-a595-85397acc95ad","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":50,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"f9d68d2f-4e52-4476-95c3-e9e74597d3ae","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":50,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"66bfce67-e59f-487d-b64c-4538aebc89fb","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":50,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"d6d1cad7-39e1-4b40-9127-799342ddd29c","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":50,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"dd38483d-2e8b-42fd-a626-0ccd0904def3","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":50,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"7879570f-a781-49cb-9ee6-9077314e93a2","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":50,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"f98a2f69-2b62-4a80-ab0b-a3f5bc2295a9","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":50,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"57dc8451-b04f-4be8-96e8-74720969fb72","block_type":"box","text":"II-14","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7992f3ac-0e20-4e1b-b910-b5aca3d1ce54","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4717f624-a95c-42b3-b5fc-836c40e22671","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":51,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"77aa432b-14eb-441c-bfcc-0f6f873b78a1","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":51,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"3c647326-99e7-430b-a883-1e58ec7681de","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":51,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"9bb13e3e-2caa-4cf1-af73-b181049942ab","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":51,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"55fa48fc-17d4-4e43-8ce2-7c1fc1379957","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":51,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"e716dfd4-4f1e-46e0-bbeb-86975a03fdeb","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":51,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"7b32243d-8926-430e-9107-7f39ce4d6784","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":51,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"3b12146b-19ef-4371-8398-f975a0189606","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":51,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"28322d53-0ffd-4ad0-b468-9e7efe85c95b","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":51,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"4a4ae48c-c34a-4a8d-a50a-ce494926876b","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":51,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"a080ce00-d2ad-44cf-992d-19ed75ae89e8","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":51,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"de168c4a-44d6-4946-823a-f96ed17c809e","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":51,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"2fbb3014-7c85-483b-ba63-38d27c3539b8","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":51,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"3f591b07-5f94-4d51-bf1e-37ccf3489f19","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":51,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"388c4916-f76e-45b6-a581-9a2e83e2a6d4","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":51,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"c934a70c-9d42-4a92-9677-17e59a33baf2","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":51,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"f7518abb-d862-4381-987c-0294682b3107","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":51,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"9158b1ad-4e60-4a50-a9bc-75aae78b27dd","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":51,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"c9a38d33-a106-4b05-9ad7-38a13e66ab75","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":51,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"6fc334f3-4ef2-4809-bbb5-a0610882f2ec","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":51,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"1158938a-cb78-45de-8f30-5e54d8c2706c","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":51,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"38dc39dd-f49a-4af2-9ec3-afaa846e9b77","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":51,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"833bd60c-709b-47ee-9a5a-8b74b08633bb","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":51,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"fcc63aad-e198-453a-b666-f53eeb6c2207","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":51,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"4ca3d6fb-80d1-45d6-840b-9c8f2e52a3bd","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":51,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"cbf0b614-eaff-4651-baa7-d24b6ad48627","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":51,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"d75ce945-26d9-48a0-852b-80e6f689890c","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":51,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"5f276274-5589-43af-b657-811e0b37de39","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":51,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"00b24e70-e6b6-4e7c-a6f5-8466afb857c5","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":51,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"4e824e8d-94d5-40cb-bb9b-13db7efeab79","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":51,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"58f85f3b-6b52-473a-be23-972c95ab3c01","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":51,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"37148d51-340e-4781-abe7-f715bb4cd094","block_type":"box","text":"collateral received under such contracts.","page_number":51,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"d384ba3f-7782-40e7-81c7-31d5bc06b34c","block_type":"box","text":"Risk Factors in Derivatives.","page_number":51,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"d4288a8e-7188-4a97-a50b-83f27445a12f","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":51,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"2d023b24-cd54-4a53-bbdd-1002809e73c1","block_type":"box","text":"Correlation Risk","page_number":51,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"a3993492-f4fb-4a85-a4ed-db23eec47f3c","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":51,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"3fc5965e-3718-4ab4-bfb5-6a3c49a54f70","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":51,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"e6693c81-fd96-4457-9016-b71ca2bd6ac4","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":51,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"e855b789-6f7e-40d4-a50f-d96b0d4561a3","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":51,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"b5f256ea-1748-4596-b322-f4f221e58f14","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":51,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"dcd6346c-7b96-41b0-8d85-8fe12b30b887","block_type":"box","text":"Counterpar ty Risk","page_number":51,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"73aee726-3291-4daf-ada9-90062f4b0f61","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":51,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"6267ef2c-451b-4a63-b299-afe56611c1e9","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":51,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"1fe72397-66a8-4153-b59e-ab1cbdc9b316","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":51,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"dd8dcfed-3d6a-4f3f-bc76-f7f84fc85233","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":51,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"02a536d8-104b-4ad3-ae3e-84d3008e6ea6","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":51,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"340a15c4-bcc9-40e6-8258-c809e37e6151","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":51,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"7d985080-a0f1-4839-9c0d-02e0dd22f113","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":51,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"243763d2-f051-4862-b25a-b5c39b65b9f8","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":51,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"2e622958-604b-469a-b03b-2424dc6a8e23","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":51,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"dfa433fa-4252-4241-98c7-8d39abbbbd5c","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":51,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"00decf93-93f8-401e-a64e-973f1516a89c","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":51,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"4a0ddd8c-f27f-49cc-af42-44cc0363545b","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":51,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"94861b9a-86b7-449c-9c94-7b9f0d7cd044","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":51,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"24be1fab-2b19-438d-b5b5-89bbdf6c3f8d","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":51,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"23e6e41a-3978-427e-b421-a9e3802f3534","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":51,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"41bde0e0-aa72-4df4-af19-b0d54ed38ced","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":51,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"79fb6646-fed0-44f3-a3ce-1b7ff8dd03e0","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":51,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"f13ff225-3a52-4618-870c-66f8e7f05db3","block_type":"box","text":"II-15","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"92beb67a-24ca-46dc-a540-fee9eb3bd114","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"acecc78b-f76d-4dd4-bbfb-b1ebb106fb7b","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":52,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"3f1046c4-e063-463e-90c7-fdcbdd737bc9","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":52,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"e0379b94-7d26-4d2e-b9cf-288f7a75b0bd","block_type":"box","text":"by the clearing member.","page_number":52,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"3af6b257-e062-4bb7-b996-09cc40df7925","block_type":"box","text":"Credit Risk","page_number":52,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"a24a1f85-2b43-4750-bce5-e847af4cc14f","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":52,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"9cdbc187-944d-489d-8169-0e16f525df38","block_type":"box","text":"honor its financial obligations.","page_number":52,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"56bd1a11-14c0-4330-b203-bdb188a6f9c6","block_type":"box","text":"Currency Risk","page_number":52,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"64b28983-84b0-432d-b1d4-d79dc58766c7","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":52,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"b1e5559d-3d6f-4eb3-8db5-a2aefaa66d29","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":52,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"b515512d-c104-4298-954e-fb2c9bcb3d58","block_type":"box","text":"Illiquidity Risk","page_number":52,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"a1b19fe7-bf4f-4496-9a13-916044213c07","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":52,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"b7d05d88-f9f1-4c3a-8d90-bebd664a79a4","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":52,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"a585b6ae-58ef-4fe0-a1f8-f20371670dce","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":52,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"306d69db-2c96-4578-8697-4bfeee1412b2","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":52,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"3b46afb2-70c4-41fd-800f-9d76e5c48407","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":52,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"ece3220a-cb6f-4129-9e81-e1d7cd1a4bc8","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":52,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"1cb7b7bb-98e5-40e0-a72c-6ebf6316d0de","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":52,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"25facef8-c10c-428a-91f2-09c1eeb0da50","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":52,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"fae58ce6-bd12-4bd2-b01b-ea693bbe8eaa","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":52,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"9a8c3f3b-a200-4715-b8c6-7487af015e02","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":52,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"cea43194-727a-42bd-86d9-f2f0e06bd096","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":52,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"06ef7742-7018-455a-bc63-3e294da4157a","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":52,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"f5ca9829-069b-4279-b369-dd9d876661b8","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":52,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"b51bdcba-dd86-4d22-9709-3416a535e89c","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":52,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"5c6493a6-4afc-4c4c-b9ba-88e1f48cece8","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":52,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"8927c697-0c78-4706-a73b-f176e16bfdbd","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":52,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"2053a660-d8cf-4332-910b-3a05f936ca25","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":52,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"7b4d4d77-e429-4c51-95b7-a177c6c84167","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":52,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"fd9068d3-2c55-414a-ab18-ea947ecdd139","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":52,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"2b77b566-c3ec-4462-8e03-19cd9a61e04c","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":52,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"12cc7069-bc3c-4a60-86c8-114dd4474683","block_type":"box","text":"may be disadvantageous to do so.","page_number":52,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"ea426b9d-e489-4a36-aa86-ee5ed1eb0d9c","block_type":"box","text":"Index Risk","page_number":52,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"19b9b5a4-0678-4f80-b1e9-09ecde0b13e0","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":52,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"8f814f01-0783-4e5c-92a7-63c127f1b8df","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":52,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"3c6b708f-1ce8-474b-994d-b38e87fcee3d","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":52,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"95af7c01-7a52-4ce4-8138-2dfba3aa8463","block_type":"box","text":"Legal Risk","page_number":52,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"a7f24d79-3109-45b2-845c-cfbe710837db","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":52,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"cda47cd0-cd41-4f73-a239-635a957fcbe7","block_type":"box","text":"or enforceability of a contract.","page_number":52,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"da969bb4-88c5-47a3-af82-df099f984eb0","block_type":"box","text":"Leverage Risk","page_number":52,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"36285890-a7c8-4d8e-98ea-80d98fdf45e7","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":52,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"73cb8fa4-8824-4465-bbc9-339827a0240a","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":52,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"2c3252e8-ddff-4014-bcab-e510e9967150","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":52,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"b2258b96-52e3-4eb6-8779-78a5576efd5e","block_type":"box","text":"Market Risk","page_number":52,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"6ebf7f8a-be97-4867-91ac-4151c22e884b","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":52,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"066a90b6-0a53-46c9-8acc-94527b9b8b96","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":52,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"8835c109-b21c-43d9-ba06-70a263c88ad3","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":52,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"823d3279-b2ba-4494-a8c4-14e9bab995d4","block_type":"box","text":"affected.","page_number":52,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"944ee440-fd6a-4d63-b7f4-8c5b831f685a","block_type":"box","text":"Operational Risk","page_number":52,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"5153ad67-2dc2-4ae2-afc4-c00a20463014","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":52,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"86edfeb0-f522-403b-9727-5659f844e46c","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":52,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"4336e97d-a080-4d09-b29e-ad52a7367b30","block_type":"box","text":"Valuation Risk","page_number":52,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"4519d1d8-2314-4df2-9678-41a32971485f","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":52,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"9b60810c-09ac-4fa4-8331-df907dee08e7","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":52,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"64595015-a1e5-4586-92f2-6afc3e31854b","block_type":"box","text":"complex instruments or quote prices for them.","page_number":52,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"bcc423e4-6c84-47cd-b4a8-5c4464989aad","block_type":"box","text":"Volatility Risk","page_number":52,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"8623d9ea-905c-43f0-a339-1908e662be03","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":52,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"c06966a5-5368-406e-86b0-345a7bb6c883","block_type":"box","text":"Types of Derivatives Transactions.","page_number":52,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"02b1302d-e8cf-492a-9258-e5d448bd944a","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":52,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"a990fa25-1f2a-4cfc-b67a-0a37a34568b7","block_type":"box","text":"including the following:","page_number":52,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"5589771c-dad4-4f29-aef6-afabc9c7ef8f","block_type":"box","text":"Futures.","page_number":52,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"7a154d3a-c995-4700-868c-53921c9c4285","block_type":"box","text":"II-16","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a45301d7-d54c-447a-beed-460c52ded7cc","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"248e6604-b61d-431e-aed1-ef421169c5fc","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":53,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"7498dcd5-11f7-451d-87da-c862b917310a","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":53,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"f6c29638-aafb-4701-b3b3-8cadd4b754a8","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":53,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"db0b77a0-fbe3-4faa-a29d-ee5f7f60e418","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":53,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"ae90f294-48c0-49f4-8b0d-8af91309eb91","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":53,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"cec4792c-14d5-41d0-921f-50760b955b63","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":53,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"66c3b31e-e5da-4072-af82-752b80e78d39","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":53,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"6ad5f356-cc3b-4e50-8cd7-8718793f4338","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":53,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"aaf1a0c5-34f8-4ddc-95e4-3b2515d9ec00","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":53,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"1e43a4ee-b895-4fec-9339-f4f8af43cb91","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":53,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"831972aa-4c15-463d-a627-1365aac39ed3","block_type":"box","text":"of the futures contract.","page_number":53,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"1c7a0369-d35a-4e09-b6ca-00100cb2a48b","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":53,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"a6577c35-f62e-48a5-bb88-1e41b95e8cf8","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":53,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"72c2af3d-715a-405b-8977-0e18f618ed0e","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":53,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"ca4d7fb7-5b38-41d7-b36c-20891af2e5e4","block_type":"box","text":"relating to the futures position.","page_number":53,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"7c2f3d13-1bac-497a-ae30-b0953ed8553c","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":53,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"8824719b-1f49-4d3f-a9c1-8a62d279f199","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":53,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"1bfb887c-4d65-43a4-b992-adc0ac81073c","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":53,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"2310aaa2-27db-42b8-b4a3-78e2db9ec28f","block_type":"box","text":"Regulations” above.","page_number":53,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"f054b63b-febd-44e8-a0d3-c6dd8dc94e31","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":53,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"452a6584-aeea-4918-8693-6a701a71f2a6","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":53,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"a55b6d6f-4af7-4b07-8d8f-4114323fb4a5","block_type":"box","text":"(","page_number":53,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"f909a62e-5d22-4be1-8190-97e9afb22328","block_type":"box","text":"i.e.","page_number":53,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"9ab612a6-fc59-4ed6-b749-6c29db35ee1e","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":53,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"338f2268-b5c7-4cdb-b4cb-a9570e063f63","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":53,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"c36f1d7d-4ebc-4108-bfbd-27d46d853dfc","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":53,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"071eed26-8c70-4b7f-8135-f25fe47f2475","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":53,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"4144e993-429f-48d0-8786-378432aa3948","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":53,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"cdbc0f8c-9b4e-4b4b-9876-a99e9ca85df0","block_type":"box","text":"Fund intends to purchase.","page_number":53,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"a8708445-ec7d-4841-88e7-546ffd904330","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":53,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"880ddfc5-ba69-477b-b114-910e75af3f89","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":53,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"d45c73ec-64aa-4559-a69c-3c5dc5c2d2dc","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":53,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"aa79b587-e8f2-4dd6-b24f-528fa307720c","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":53,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"a194a157-6fef-4abc-a82f-c89081eb768e","block_type":"box","text":"illiquidity.","page_number":53,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"e6d103db-67ac-4231-b712-c154e8680b45","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":53,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"2c38c4c7-1393-4a7c-a82c-d748751da2d7","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":53,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"d0f35126-23de-4628-a629-f48cf2e4c3d2","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":53,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"43ee820f-80e0-4f45-a758-3c17e32858eb","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":53,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"443317ac-d1d0-4b4e-8a60-47b6c66893de","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":53,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"833539d8-be03-49cf-adae-0593ee90316f","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":53,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"83b9e883-195f-4bb1-acae-74a66fc2fc3d","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":53,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"9d9ec48f-508d-4a5a-aa64-bb3c1196a9b5","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":53,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"0ffbd68e-d889-4c65-a1c7-d42bdbb8cb03","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":53,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"58a67d6b-aa49-40d7-8570-401d5df43064","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":53,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"32763662-5117-4b11-9500-9eb1d8ceabd1","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":53,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"6764e033-d4b3-48e7-a752-a6a3b46b39d6","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":53,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"c5d2f1e6-8b29-4d9e-8639-d4dd8965aaa0","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":53,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"a1f14cbd-afee-4846-a2c5-a48d158a1683","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":53,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"74de8860-b0d3-48d2-bfc5-15351101bf28","block_type":"box","text":"Swap Agreements.","page_number":53,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"13dfd710-4375-4b80-9776-648a0b5172b5","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":53,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"54590542-5e5d-4dbb-8b97-b5947ff33207","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":53,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"16ae8a67-8ae3-43bc-82d7-d74cba7410f5","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":53,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"aaa66536-8c0b-47e2-85b3-b00925a2cb59","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":53,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"054dbb9e-3a63-41b7-bdf8-3c8bbea5fd2b","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":53,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"fcdd4d75-2127-4244-9ae1-a58eff613e30","block_type":"box","text":"a “notional amount,”","page_number":53,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"a24d221f-06ad-435f-ab7f-d00086b631a2","block_type":"box","text":"e.g.","page_number":53,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"cf3768e2-2fb8-47ed-b2f5-89ac16b8f8c6","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":53,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"ebfd67ab-0ae2-459c-b350-0cdfb456326a","block_type":"box","text":"II-17","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9173815b-69aa-42c8-9d24-88f1842a813d","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc99c0de-cfa9-441a-809c-fd397ae07783","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":54,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"2910df49-a9ca-4ee1-b9fa-0ac9ea6a8065","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":54,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"0df37ff3-4fea-4938-a265-e7f511e33c07","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":54,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"b667b80f-3d97-493d-8e2c-c9843480bd52","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":54,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"2dc1ecac-c827-4458-abd2-b2fcc52fa6c0","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":54,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"f9cb1a00-3613-47cb-9db3-598e03876ee2","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":54,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"531c7692-97f8-4e7b-8e69-54bc04dc2397","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":54,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"1588ce0b-1bbf-402f-bbdd-b077cfeac468","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":54,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"32bf3527-a474-4dba-8a7e-e9935d8d6619","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":54,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"31e48fe3-cc56-42ce-8e96-8fa12401c1e6","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":54,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"d1856730-5beb-46f4-a5fa-fce117f532a4","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":54,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"671ef0ff-2732-4723-802c-f86a7a099e65","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":54,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"31b15a76-cc79-466b-8c8d-a117ae4cb3ce","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":54,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"a9d3ddee-d354-4efe-849c-b651467356b6","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":54,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"612b3962-3f08-4a21-9eee-74e083a967da","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":54,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"9d83d031-8715-4fe2-9276-693b856035c6","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":54,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"1b38193a-b75c-451f-b801-074bc51fad8d","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":54,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"b1688b92-f0d7-42e8-a600-39302d1b631c","block_type":"box","text":"index CDS.","page_number":54,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"4b31cb62-bd86-4bc9-9e1c-39e01480a40e","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":54,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"7b0b0b1d-630c-49e0-9496-985032bf8453","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":54,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"18d1bee1-ae99-42b8-99bd-6bc7cb0d3aeb","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":54,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"92896b5c-4a03-46d3-8447-8abe0b6ffb52","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":54,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"59a44277-ba0b-4e76-824f-a8698add72e7","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":54,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"9b649305-54ec-4c34-af2d-8aa6f479448d","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":54,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"b90d730b-2492-461d-a1c3-44ecb6f9ba37","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":54,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"454e289a-d987-4c76-946c-0f7ac8fa1a34","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":54,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"18386920-2e9b-4f3b-8754-7e4a5a0f4021","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":54,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"557ad4aa-2696-4b6e-ad3a-b031d7fc3d22","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":54,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"6ea12aaf-57f4-4fe7-9cf1-20f9b22f02b6","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":54,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"7f3668db-3bc1-4a5c-aa09-d831cb309386","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":54,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"e4a0f074-ef6b-4abf-8149-ed30c21007af","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":54,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"4994df71-aff5-4b58-a697-93f709217435","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":54,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"423a085c-70db-465e-91cf-40407099f0e5","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":54,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"811fe1f8-b818-44a2-8bd7-673fecdf84d0","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":54,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"a0729fcd-2594-4503-b93c-b1d4e65a0ad5","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":54,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"f7cf5ae7-ccaa-4c66-bd67-3652346b9395","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":54,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"bdbe00cd-3b28-4602-9fa2-3425c7d9ca5a","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":54,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"21ee3ee1-115b-4900-9c5c-cd6e97c9506c","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":54,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"fa09d762-8e84-4bb5-9ae6-c8c3d1d5acaa","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":54,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"1e9bcf7c-44be-4385-879d-7ee4a717c7d7","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":54,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"0e406b75-7eec-4527-8be6-d5a679e3f15a","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":54,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"40821133-0b8b-4d32-aa79-6b0361d56377","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":54,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"d57bb067-169f-42ef-981d-67807983a993","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":54,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"c0784894-29a2-4a80-ae6b-a651ab9a0e84","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":54,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"934a1054-59ca-4729-9614-1b3374e840fe","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":54,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"19aed0c0-6112-40c2-82a0-f206c78cd552","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":54,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"23cee8e0-8e03-4da8-8dc1-483c08cd9d86","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":54,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"1702c593-cee3-47ef-aa24-2de70f84228d","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":54,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"bd0b889a-a691-4eb5-a4f2-87059503dcf6","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":54,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"e38cde3f-559a-4067-a1ac-a962489609cd","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":54,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"7eab06d2-6088-4159-8680-c41ff8e36bed","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":54,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"5e4e1cb2-e05e-4a9d-b6b4-0a1dbf26ca93","block_type":"box","text":"conditions.","page_number":54,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"874dff7a-8685-497d-97a2-49348cc2de5a","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":54,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"29a71c54-a0df-4221-b2aa-fd20752b6959","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":54,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"768919d6-1f6b-4c6f-b07a-b5c2a833ffa5","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":54,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"56058a16-d57f-4b8d-8b35-db5e5e787006","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":54,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"95911be5-22a8-4631-8e95-d5b978df4e18","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":54,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"789a7d61-18a6-4ffe-9b8c-abf1c063aed1","block_type":"box","text":"II-18","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b42e403-0589-4207-b6f3-3a945d7efb89","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c732d594-a2e2-49f0-8105-24781c890d01","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":55,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"86de7e74-57cb-4c64-9035-6f147684b84d","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":55,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"a01b6c95-901f-4aee-9787-4ee470c8f642","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":55,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"adcbdc3d-2e94-41bb-99df-ba00893a2ff0","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":55,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"97c6a11a-c7a3-43a8-bb8a-d23b3429b226","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":55,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"c10714d4-b40b-42b9-ac77-29f64cddddb1","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":55,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"67918ad6-f0ba-4c10-9741-f1f6d03c0ba5","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":55,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"2fca60ec-c25b-4cbc-b1d6-60184db1be9f","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":55,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"fe70a1d7-7607-4f24-a961-807f55d4ce8b","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":55,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"5833c1d4-4813-4d8b-b452-bc116912edc1","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":55,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"05e9372c-af72-4db2-9479-b409f9895b09","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":55,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"959559a9-834b-48bb-8667-8b3f66337f04","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":55,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"cc2da622-03ce-4b7e-89ca-1a05a466601b","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":55,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"66481c61-1a4d-49ba-8410-8c81d7f4ad34","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":55,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"6915712b-6f6d-42b4-a54f-fee882542ece","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"59d26eb8-f6df-4b5d-b5e7-b9f69c941b13","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":55,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"7d6fd595-43f8-48e0-a0cb-bfdb3226040c","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":55,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"e4fbab9a-c201-44b9-9ed2-5adecfa0b745","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":55,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"9dad8a24-7c92-488d-ad41-5594e0f4dbde","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":55,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"e3d38922-5048-47f6-8fed-63b391f89360","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":55,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"c1ad3670-301a-4b62-8dbc-1d3b2b7dc70a","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":55,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"c4015fc5-8383-4c4e-acb5-1997ca5d79c2","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":55,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"722977d7-856c-4b6c-88ae-e8222426a3ca","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":55,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"fbd2b8c2-992e-41fa-8104-d9b2c607013f","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":55,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"c3e294a4-f08d-45f7-af70-c112c604b561","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":55,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"63548ada-7bd3-40c1-b0a3-849cc604e572","block_type":"box","text":"cleared interest rate swaps.","page_number":55,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"2a62ae8b-65dc-44b1-b03f-2b45df6ab728","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":55,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"4debde9b-a091-4a5c-98b1-e9a5af531207","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":55,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"6e655bff-b474-41d6-89f0-6002ee16d11f","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":55,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"178bdc79-3102-4e3f-9e81-75617d6acd9b","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":55,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"b2b901d9-7175-4944-8ac9-3d27894c7304","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":55,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"98feca2c-2e06-4741-bb7d-0bc9bc8f32a3","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":55,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"a6b2d2ec-dc64-451c-8314-beaabd095b4c","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":55,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"e1a1e6ec-f70d-4572-bbe0-3965c4d3c167","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":55,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"f7a76a20-0394-43da-8acc-32e4667b7d36","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":55,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"770a1245-2036-477d-9242-ce013ffc7f0b","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":55,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"be050666-b4ba-4f42-a2b9-44f17ed80c54","block_type":"box","text":"or variable interest rate, index or asset.","page_number":55,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"44acd6a2-218b-4327-a3f2-d974fafed969","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":55,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"2bb24c54-4bb5-45b4-8255-edabbf2ff74c","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":55,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"e3c2f012-c6e8-4216-9bf1-504fd4d7a17c","block_type":"box","text":"such interest rate floor.","page_number":55,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"28258f77-3db2-43c1-8dcf-b1adf164348d","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":55,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"8468532c-0656-4c76-8c3a-071d50421cf5","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":55,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"42f5b0d3-32ec-41df-9637-222083e9ce04","block_type":"box","text":"such interest rate cap.","page_number":55,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"2d94400c-e23a-4bb4-8be7-c2f1a75b240b","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":55,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"77a0b1af-dad9-4799-997a-3bef7a96b20a","block_type":"box","text":"commitments to pay or receive interest,","page_number":55,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"6d310b60-6b4e-4c91-983c-e26f1fb323b2","block_type":"box","text":"e.g.","page_number":55,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"dac6219e-1309-4e7a-ac13-b719f1116b26","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":55,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"d240d9ba-7106-43d9-aa90-a847b14c9b3b","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":55,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"d4bddaf9-415b-4361-b382-d27ac5aae408","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":55,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"def9c01c-f902-4721-a24d-9fea388dcd8e","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":55,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"6059a287-33dd-4122-8355-c21b4f066257","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":55,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"d5585fb5-4070-461b-9a86-cf8c1a9946ef","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":55,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"cb86e264-15a7-41d7-974c-eefc25418b49","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":55,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"e3aa7d77-37af-4999-b8ad-d5d53c6b9c32","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":55,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"ab4c3268-9fc4-420d-a0f0-3159f278323c","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":55,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"4b44df99-729e-4170-8929-311b75af479d","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":55,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"1a6da6f6-95c1-4258-bcce-dcd7171a23dd","block_type":"box","text":"II-19","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b602dc48-a51a-4122-95db-020f6b27c703","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d72219d-a251-442f-8b00-f9fe640a6009","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":56,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"8fdab3cf-5791-420a-8c80-203082910445","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":56,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"7f8bf9ff-ad26-4687-8ee2-daba385d1ac3","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":56,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"282ad396-5258-4e9e-a8dd-a32eef05ec51","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"c0e9b396-ab36-4eb1-b9c6-c15adf368430","block_type":"box","text":"Total Return Swaps.","page_number":56,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"c5d654de-b152-40a8-9c97-a3ee6aa377e5","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":56,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"3a3c2035-0be8-4579-beb1-d738cd7a221e","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":56,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"ceae61bd-fa73-4191-b4e9-74da7b364352","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":56,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"3e2c2161-1e91-4300-818c-73c7632b4f09","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":56,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"155eb2eb-0a05-4830-b665-296566ba38ed","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":56,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"7d529049-e094-4f82-b0b9-4ac161056215","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":56,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"c0a8b787-cd24-40a8-9679-8a6a222fd314","block_type":"box","text":"“contracts for difference.”","page_number":56,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"79b47c3a-f5ae-47e0-ae6d-6c74e32f7f12","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":56,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"aff52cdc-1daf-47b3-8ef5-c5bbd68d11ed","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":56,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"647b8375-9ab2-4844-bb6d-cd783384df33","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":56,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"12fec642-f4e1-458c-88fe-2c282abaa18c","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":56,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"7d420c2b-4d9a-4772-b1f6-66ff25631626","block_type":"box","text":"the notional amount of the swap.","page_number":56,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"d09caa75-a0fa-42c0-a612-18370822305d","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":56,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"4cbc145b-4c6b-4ea5-9e50-f90ba6dd1c65","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"e0e13ec3-5ebf-445b-bab9-040deac431cc","block_type":"box","text":"Options.","page_number":56,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"b9a285d1-4ad4-47f6-a133-f6b0284e18ae","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":56,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"682f0059-3e02-4c87-ad25-3b27cc650eb9","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":56,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"c57b9c4b-4ded-4c4c-a450-fcfe17196a08","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":56,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"e0dea5ce-3d79-44e5-ad64-ed6393124c73","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":56,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"4f6f6751-4790-4789-9b3f-8678b6052f2e","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":56,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"1a822ce0-3f60-4c04-9c20-fa9f4e94ebfb","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":56,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"fe31ed22-3ba4-4e46-8ee9-ff6c1589fe3c","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":56,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"dcd99664-bf4f-4c03-8a04-26b48d2e7196","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":56,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"960a5f8b-7943-4699-96a1-6aa754880348","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":56,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"640d5949-1b25-4583-9d5b-4288f4771109","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":56,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"fba668b9-c19b-4d46-9d29-af29f43bf04d","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":56,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"b4f72fc0-f1d7-4b34-bdef-eb003eac9892","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":56,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"e25a3c28-b7d8-4b24-87dc-0381a5067dc7","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":56,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"317102a6-bec4-4d21-b7ae-591336b6c064","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":56,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"73ca15f4-8444-4088-a32d-5a523af13c5d","block_type":"box","text":"OTC markets.","page_number":56,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"4a07f186-d91a-48c7-8ff8-353e3d703041","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":56,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"c471aff3-7497-44c4-9849-b621bf404812","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":56,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"155e12ca-6483-4383-97a8-4ecd920225ae","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":56,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"60f4bf05-7fe8-4dd7-ac92-fc96ab37940f","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":56,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"ca17d321-f990-4579-b626-5fc965506492","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":56,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"d0f7e2ba-d4c2-4ac0-a234-55c407b3118e","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":56,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"55f93c9c-65d4-4f0a-a55a-d0da13346c9b","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":56,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"4c27b089-82da-4134-a887-2e4413333eef","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":56,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"27fb8273-62e5-4bc6-9598-1b06c65f9c4d","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":56,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"14548a5d-07b7-408c-a464-ef2be37eece4","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":56,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"e5b9bde8-555d-4dbb-8c0c-febec3686872","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":56,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"79316d2e-271c-46ef-9413-66a51431e61d","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":56,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"a7f54f32-633a-410d-8937-655f5a068749","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":56,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"a85efe82-43d2-458a-bed5-c758673961a8","block_type":"box","text":"terms.","page_number":56,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"abedc0bd-3f66-46cc-bd2b-95b3fb50f58f","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":56,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"1f29f31e-a448-4ca5-b1a7-040d8407ae84","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":56,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"7a764ba0-a80d-47d3-be81-f98e9bc65c34","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":56,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"ef38f228-c768-43ad-9b4b-587ff1009b7b","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":56,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"8d8ee339-d84d-48c0-8b0a-aa4032eb74bb","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":56,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"2519c904-4cc9-4f40-b394-7da95fe051a4","block_type":"box","text":"II-20","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a270ca2-257b-40c2-814c-86107197d782","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e08073a1-d9d0-42e7-b55b-2f46fdc189b3","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":57,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"45d76436-25f8-4f9b-a7da-7403b3aa708a","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":57,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"eb5547b5-bf03-46d1-8a73-dc60778f3fc5","block_type":"box","text":"Call Options.","page_number":57,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"6ef4c07d-7029-45dc-8f43-bdaed6cdf16a","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":57,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"3d547b3c-1a1e-4a80-8a57-c6b02859f35a","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":57,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"047b3557-b06a-4321-8fcb-a8a60b9051ca","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":57,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"e962f29c-970f-4f85-a4ed-d41ea26b1f20","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":57,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"fbcfd6d8-7e93-4c96-b2af-091dab3c77e4","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":57,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"83485240-fbfd-4182-a353-04c55506462a","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":57,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"276fca62-7467-40ac-8985-a50e61df9cda","block_type":"box","text":"of the option.","page_number":57,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"cfe4ea96-9931-4f1d-baef-88b1b551e5d6","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":57,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"e5f13759-2ff2-48f5-89b3-ff52d3ae5481","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":57,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"acd4cfd1-0826-4c8a-a748-820d440e36b7","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":57,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"3687b75c-68d4-435d-85cb-d3b00efa95c8","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":57,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"d0f75d9a-be9f-4a25-8f1d-04dea5869d9b","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":57,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"81bceabd-c16c-4d98-aed9-7b3cc6fa8bac","block_type":"box","text":"A Fund may write (","page_number":57,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"b9e43269-d274-45e0-b274-a50cc9f5a1a8","block_type":"box","text":"i.e.","page_number":57,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"10feb64c-fe1d-4ead-ae69-4181fa688dd7","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":57,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"96ce5371-00d4-4df9-a60d-ce951b2676cc","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":57,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"11343dae-ec23-418b-a6ed-dfdc012621c5","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":57,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"bc5724f5-467f-4b79-8f65-3cd62c714d43","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":57,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"297e488d-4954-4cd9-8542-40e77ff8a268","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":57,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"4d215f7a-ae19-4db6-9388-1a523dcba859","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":57,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"b5016ec6-c096-4fd3-8342-f2a3a0984f6a","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":57,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"5d128c0f-9e3c-4a27-b93f-efbc0ec2758e","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":57,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"b273d908-7b66-4bca-9aae-4b7e88849a52","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":57,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"a6eda02f-cdbc-45b7-b22c-d06c0fcd23e4","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":57,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"4447d0b1-1c4d-4f70-8b54-a5bb02c40031","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":57,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"b2556994-7525-4b7e-8669-cede4c909522","block_type":"box","text":"A Fund may write","page_number":57,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"1a1bd798-cf3d-4e2a-9ea7-4d1a03e60aa4","block_type":"box","text":"(i.e.","page_number":57,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"8f3c4c63-9c7f-4f0d-b312-8b98b76db422","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":57,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"19ba7dc1-91c9-4624-8bd4-c32fa8acf2ad","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":57,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"68ef3852-636e-4ae7-a164-380cfa9812cd","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":57,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"f883c1a0-d0fe-469f-9fe2-6ab1a1ae483f","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":57,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"7c78f03f-b527-43fe-b3a1-641ba4e489e2","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":57,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"4b1341ba-e618-4394-a642-9754533783ba","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":57,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"c82af654-aac5-4b88-9f43-8156461aed37","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":57,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"8863dcb1-9b05-4b29-ac73-37c960dc6e1d","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":57,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"2dac04bc-292c-468b-b3f5-c11c49445ce0","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":57,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"e82ac287-435b-4fd2-bbe1-4c81be1591d5","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":57,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"d5a5f49b-2aec-4f29-bf92-eabfa3d11cce","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":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"ca43529a-2986-412e-bbb3-97479b8709e7","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":57,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"83929aef-be7c-4274-979f-bd34999683f6","block_type":"box","text":"Put Options.","page_number":57,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"f9dec4e0-a498-485e-bc07-76fee8355e37","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":57,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"a2bd63ee-433d-4b80-ba13-92bcf17c7019","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":57,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"523abdff-3441-496e-a7fd-9af5375d3d1a","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":57,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"8380a3dc-6c6d-4f57-94c7-fce4ba778fe6","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":57,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"87cc2aac-988b-4227-ae94-d56ff2ec48d3","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":57,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"41b23aec-e8ba-4fcb-a72f-a868a90b077c","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":57,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"06ce1501-6256-4702-a11e-bdaddfe18dbb","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":57,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"eff78936-0782-4d27-8c48-058f25333f5d","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":57,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"efe9d80e-fc13-46a7-9591-d5b2679cd113","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":57,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"18329959-b489-4a30-82c3-a5d075113186","block_type":"box","text":"purchase uncovered put options.","page_number":57,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"cbb18b93-f297-4e01-9389-bf69e8f92758","block_type":"box","text":"A Fund also may write (","page_number":57,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"ca53e721-565d-4807-b464-e412821cae3e","block_type":"box","text":"i.e.","page_number":57,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"c518c525-5411-4d1b-a141-4e94781077fe","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":57,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"b612b88e-ff4e-4dfa-89dc-2ebe796caeb7","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":57,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"c260c2c1-0c97-4990-8efc-7746e55e2a76","block_type":"box","text":"A Fund also may write (","page_number":57,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"637afcf1-c857-4866-8f2e-e569e61b7c48","block_type":"box","text":"i.e.","page_number":57,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"41a49aa5-8c64-442b-b8ed-04fdd1b9b4e1","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":57,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"250485b1-3548-44ff-a657-9f6d3ab3a2b3","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":57,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"c9fa9ad7-e535-40f8-9947-9cfa8dc3c239","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":57,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"5accb9e8-5c7e-4f6d-a20f-baa607b0a454","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":57,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"28f6a176-a2ce-4a7f-888a-97cef5b4541b","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":57,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"c518a0de-1c3c-4b7a-a0ab-b65fdb5d6064","block_type":"box","text":"II-21","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ff02f6e-8c56-410e-9db5-ce7e574e2b47","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b8937e4-9ce5-4284-8569-aa13d1b62f17","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":58,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"ff83520b-c8f3-4459-a9b3-7675bbd1a4da","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":58,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"fb798ebf-4c66-4664-ac1d-09dbb82f3ca9","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":58,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"9ecca1c2-9b19-4632-97d9-d5b34e077c30","block_type":"box","text":"the exercise price.","page_number":58,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"9d172021-4ec5-4c78-be8d-5ef0b75509ee","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":58,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"5f37dfe5-287b-4ebf-bbc3-6beb9dde8a84","block_type":"box","text":"The following information relates","page_number":58,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"c25c342c-57a6-4152-86c3-16992b7b0a74","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":58,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"bd815f8f-483f-494a-81a2-a56e64bb4c7f","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":58,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"3ce98408-8a1f-4e7b-ac9e-19b03a81f0e7","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":58,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"ba6dafa9-4ae9-4899-a1ed-8b7153639b7b","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":58,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"7a57d146-71a7-4b43-b886-72694ad9ede0","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":58,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"3f332641-c043-44d9-a15b-aa76fffce3cf","block_type":"box","text":"market in order to maintain its “cover.”","page_number":58,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"90326252-9989-4320-ae27-980e0e0dce75","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":58,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"da1aa7c8-61bd-4707-917d-e23a39a9c14d","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":58,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"ac2bee81-6642-4ca8-ac06-df52d197e0d1","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":58,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"d3ca5b6f-7a3c-4d38-8b84-7655d9d369de","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":58,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"383a04b7-044e-4f71-afd7-36568ecd1bcd","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":58,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"97cee651-72fa-4f2c-bcc7-7bca975da5ab","block_type":"box","text":"and incur transaction costs.","page_number":58,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"fc20619f-e070-4cb1-9a95-2deaba56c13f","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":58,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"10013cb6-2f49-48be-a5ad-1f28c9d0b650","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":58,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"c2fef6b1-7fdc-454f-918e-17382e4a1487","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":58,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"2788c6c5-7235-42d6-93b0-8fcbfa7c422e","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":58,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"25bdf700-e6c9-41c9-861d-d8fee7e4d58c","block_type":"box","text":"i.e.","page_number":58,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"87cd219b-dba9-49b7-aace-92ed0793fd6d","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":58,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"ee90dddd-e5a6-4dad-8c1f-3151ffbe9486","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":58,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"b9244569-41a6-4697-8659-a36aa4f61eba","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":58,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"240110ba-5b9f-42d6-b42b-67e6b03cab87","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":58,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"45ef1c67-c167-41fe-a428-f3a4346118b0","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":58,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"567567e3-c454-4903-9670-1c2466e7347d","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":58,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"a32cf8aa-89d1-4f51-b0b9-746ff0e86c8a","block_type":"box","text":"required, to be cleared.","page_number":58,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"93f39511-b83c-4c50-8736-f665635e1a01","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":58,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"7581143e-06e4-456a-9e26-260029a9cbbe","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":58,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"efef583a-4da9-4a36-b650-76478a762614","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":58,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"e7f29e07-e14b-4ffe-a2fe-8328c06efaaa","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":58,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"63aca01d-e5f1-4dd5-bb05-60ffd77ca72c","block_type":"box","text":"Derivatives” above.","page_number":58,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"75b314f4-28c7-4f4f-aa9b-bae703c5921e","block_type":"box","text":"FLEX Options.","page_number":58,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"cb7b189b-b8e6-4a23-a598-73b9f0520104","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":58,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"c52d8c37-d94a-42e3-aec0-11dc60d9d0ea","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":58,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"5d98c8eb-30c2-4e63-baf7-6843bfc9b95f","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":58,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"0d837d25-ba69-4713-a604-3e28d4f85d90","block_type":"box","text":"exercise prices, exercise styles (","page_number":58,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"1888259e-52d3-40ab-b3c9-091e8eaa2d05","block_type":"box","text":"i.e.","page_number":58,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"d08c65e9-68d4-41b2-8597-5dcd2fee15c6","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":58,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"eaa0c76c-5ab3-43df-a6cf-359098075187","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":58,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"5f5eeed7-28a2-4d6e-9e1d-000c6ea21c8b","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":58,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"a668acff-cffb-4eec-b21e-dc03bd1e74d4","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":58,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"7c19af62-9dd4-4da5-8e96-ce164ab34cf4","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":58,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"e16420bc-f969-4a07-9918-802e7ae254b5","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":58,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"e5edeb5a-cc5d-43a7-a5b5-cb819b333070","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":58,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"dedc8e82-2dc0-4409-aedc-4f764347fada","block_type":"box","text":"FLEX Option’s expiration date.","page_number":58,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"b82dbe19-307b-4a2c-86f2-5c28ed0b0646","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":58,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"7f0837a0-6913-430b-9320-9da9cc718f12","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":58,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"2f0ae6f1-bc93-4b2f-b9aa-002b365fb6fa","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":58,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"0b15ee2b-add4-4b1a-a029-bb149fa18b4d","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":58,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"36374e48-58eb-4b7d-b9c8-b8a7fb1e38a0","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":58,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"6b925e36-d890-4cdf-90f3-5dcc7d6a7eb8","block_type":"box","text":"FLEX Options contracts.","page_number":58,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"d2ea9ca5-9af6-409a-9bbd-6b9448929c45","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":58,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"fd83551d-e141-4e17-8f7c-8f2bd7ef2318","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":58,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"5be91f29-09bc-42d6-abf5-052f259d116a","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":58,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"dedf33a3-7b2f-432b-b7e9-2d3cf097b031","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":58,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"28fb796f-49d3-4def-baa3-89b7bab29dbf","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":58,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"0a992e55-1e6c-4e8f-8bd0-bd1e996a8bff","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":58,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"92fe3d69-729d-484a-8728-15928e2fb5da","block_type":"box","text":"II-22","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba254dfc-3651-4cb3-ac64-ff9fc77ee7c8","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5eb407e0-c0a5-4cec-9e9a-4071adbddc72","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":59,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"2c3e9955-6a28-4831-b935-090df5b5142c","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":59,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"7f5ecc55-7602-43ff-9738-e832ce826971","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":59,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"2c3988f9-f63e-427b-9e0e-7c2f82ab4990","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":59,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"88704260-eb5d-4bbf-b9f4-c3d01b7a7441","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":59,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"811b5233-d6ec-4cf5-a1df-a2627bbf5d31","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":59,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"65028bcf-c540-4060-8c98-42a71e1c0b93","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":59,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"87f5e04f-a1a9-40e8-987d-8f46dc05c6d7","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":59,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"992bb662-f240-4e9e-a2c3-ef5096bbfa2f","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":59,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"7cc6e8c4-1d6d-4c52-9a15-f4ed23e6062a","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":59,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"9ab94152-bc66-483e-91c1-ca3ec76f3553","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":59,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"3261fd8d-2d32-4aaa-932e-634abd15bbab","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":59,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"10614e04-fbd6-47ab-ae73-26c078eaf7c3","block_type":"box","text":"expire unexercised have no value.","page_number":59,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"c36d5f08-99df-454e-b06f-e36474bd0a44","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":59,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"8e00ccb1-35a5-40f7-a8fa-c4b5b97a0d5a","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":59,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"4e4f0ba2-eeb2-45ec-9690-cecc48325420","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":59,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"2163a973-6ac0-4980-b0ae-139d498428e2","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":59,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"cc1a87b4-bbcb-4d7e-9e62-8437ff7e7d3b","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":59,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"5bc75871-8d79-4859-a8fe-7c79d7cf8c61","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":59,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"1b68f865-5533-42da-b926-4d24db789204","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":59,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"9338be61-dde2-45e8-a774-ec66ee4c6096","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":59,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"293b635f-2e19-44fd-98c3-b51dd07cf08c","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":59,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"b51724d9-08d5-479b-9b29-5a24b3df2477","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":59,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"5eea5745-907c-41e0-acb3-a0bbf01f0f22","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":59,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"52e1f568-92ec-4d29-81b0-1964a5f8e780","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":59,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"7a77dfd1-b04b-4379-aa65-7ff4c7f7810e","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":59,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"447cd124-5990-4c6b-be20-a13d3801bd10","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":59,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"f75f7b5f-c594-4271-a837-08f8871bc325","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":59,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"65027e97-fa1e-4b7c-bcb5-773fd8c28217","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":59,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"53087857-c07a-4384-9523-3d385abb7964","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":59,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"68e4c65d-7f10-443e-95c3-f033a6cc904d","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":59,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"c50cc9ab-159d-4ae6-a24e-18490261a558","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":59,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"596980bc-7cac-4fe0-a2f4-e088b5317e5e","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":59,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"6120b3eb-b627-40d4-bc7b-eef1f4e1563c","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":59,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"fce58abf-7260-4d50-84e8-07fd29a12e68","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":59,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"6aa09450-d7a3-4f67-abbb-f865d011548f","block_type":"box","text":"Foreign Exchange Transactions.","page_number":59,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"8e06024c-901c-4904-a522-68d0147ac62f","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":59,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"cbd728b6-d717-4a70-9cbe-59ea1347396f","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":59,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"0ae81ef6-d6b2-4f5d-baa7-e062e15eb42c","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":59,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"297eb072-fecd-4047-b1cf-fa191c3e3369","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":59,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"41b57067-9ac4-4504-a056-11a688062998","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":59,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"b023f281-e45f-4e72-aaec-741de5372354","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":59,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"374a31c3-a361-4176-bdfd-646053c5a4f9","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":59,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"94d6a34c-4fde-47a7-a47f-f0a3ae8144ad","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":59,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"5d588bcb-f58c-4ec9-97c4-d3e37a039d1a","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":59,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"cca0f617-3150-430f-8ba8-a21bfb30c14f","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":59,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"b0aaf198-806f-4304-a8a5-c5f029a5367e","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":59,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"760d7701-9bca-4f64-a04b-caf758766786","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":59,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"7b1712ce-0277-4c35-beca-93273c98908c","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":59,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"51c2ab11-00b3-4b7c-b04f-f8833353b525","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":59,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"c8b62627-f0f6-4375-8416-b14589fef2ff","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":59,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"6d90ab6d-b5f9-4e81-8ff3-1c213d3748ec","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":59,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"e6036fd3-c9d0-47ee-a9b3-b5e56df3bb3b","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":59,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"d27758d1-ced5-4eb5-84ff-77b7ca70ef10","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":59,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"90539cf6-0cc2-42c9-8797-554ffa04b394","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":59,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"b354f3b1-8815-44ec-a462-46877d1bb8d3","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":59,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"4181474c-6a84-4ca8-99ab-13db09acac74","block_type":"box","text":"II-23","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5597c2fa-082f-4064-85c6-8b770f5a9438","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cca85119-b25f-4b01-8a24-e8504e16c918","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":60,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"536a79b4-a042-4d82-8743-549f3859a1aa","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":60,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"c9422b86-f77b-4c67-9eaf-c337ba7e0d6b","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":60,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"ae17162b-4fe9-42e9-a212-a3e43b9cf336","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":60,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"b70f3b30-18ae-4826-bad6-72550da506bc","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":60,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"d9091519-161b-4795-b0c4-1b67cb32e799","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":60,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"def95ddb-cf76-45b4-9527-916dbb0b9f94","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":60,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"303f08df-2c20-4c62-90f8-513eb4d6f95d","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":60,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"0ecce56f-ef11-41ce-9af7-7cea297fc23a","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":60,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"7bc5b54d-3c16-4713-960a-75961fc579c0","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":60,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"a279b43b-f572-49b2-a302-c92d3b0ae1e3","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":60,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"3a6e1f23-ceda-46fa-982e-3c28a04c4429","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":60,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"bcd1c84e-929d-481b-81c7-173e3bb5fd12","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":60,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"5d36e831-a94b-4d41-ab02-033085e6f192","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":60,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"44c4c2c6-1fb1-4083-bf7e-321d438e0d6b","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":60,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"3d5122de-7830-41ab-a9b8-206461a78f07","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":60,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"37c4e869-022c-4a9a-88d4-0778b2c4acbf","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":60,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"adf93cf9-fe08-484f-a582-f315e691a5aa","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":60,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"478d3436-54d4-4c76-b6b6-a060fbde2e7f","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":60,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"10fc0c47-fd7a-438c-bff9-ae899c6a5425","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":60,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"b1d4826f-9050-44f3-b817-7ea05f91ae8d","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":60,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"e4a0a069-fada-4828-b445-675d08b93f64","block_type":"box","text":"involved.","page_number":60,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"e2ac6e36-9fd8-4c71-9229-6efe9d5126f2","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":60,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"0f25d651-b561-48fc-9fba-fd1530c2e853","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":60,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"5b6b975f-aefe-4da9-8f27-6aaad552c8b5","block_type":"box","text":"denominated in such currency.","page_number":60,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"5c4ec483-cc2e-46b9-90ea-ac9f4374e1b3","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":60,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"0d5f7a33-a9a0-4af6-80c4-bd067d11dc40","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":60,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"e981b4f9-0e3c-4c6d-afb6-93dd0a5d084e","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":60,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"cbe7c7ef-15fc-44cf-8568-78f1986b3cfa","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":60,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"0d27fd31-26e4-4dff-b563-5237b7a67921","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":60,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"0717d9ca-7596-4b81-8c17-316efdd04e5c","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":60,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"b23685db-2346-42a5-86cf-caaf36dca9fa","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":60,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"4f56f0fb-d2f6-4436-9623-d53f18e4d6d7","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":60,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"9e564b74-b3dd-454e-97fa-5ac1fa6a9dd2","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":60,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"467cf5cf-c9a8-4d98-a021-32b2d478c8f8","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":60,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"2cb98875-5caf-494c-9b04-a4db48faaa35","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":60,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"8d79e901-6342-470f-bbfd-3c846e99a6b7","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":60,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"b252fbdd-1394-45b8-b0a4-f097ed12553b","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":60,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"9e4b071a-9aa5-4745-b10a-c9a8caf93c01","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":60,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"16bd2e08-b903-433a-b6ac-4ad010e46b69","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":60,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"d17b9645-e26b-4d8d-8bbf-54718ab7cb3f","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":60,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"3620fc50-f6f8-469c-9c32-f3fc911ba364","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":60,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"a4f743e8-8273-46f7-8365-20020ca8fef6","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":60,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"4430e4b5-6c1d-4d6c-8b0e-88f19979a18f","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":60,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"a70a86ca-29f3-44c5-9f17-b9ba6679bc2e","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":60,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"4af33951-d9db-43f3-b152-581cc2645a11","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":60,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"c16e33bb-ced7-456c-b2a1-fba338b906e0","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":60,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"36c7a073-8d1f-4d02-a63b-5940e23f52eb","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":60,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"21bb46e2-1ab8-4025-81f7-97c5fe91d809","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":60,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"58a52b92-30da-48b0-806c-f78cae39072e","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":60,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"a80bf9a9-fe97-45be-a722-48239d80c8e1","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":60,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"3d5571fd-5f8e-41a8-af5f-5f12d7a3e432","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":60,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"3920db75-9d6d-4dcf-bffd-224d806d4bc2","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":60,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"e2d60a03-91e3-4080-89b5-eb8953f1aa7e","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":60,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"34f8a088-1488-4afa-99fd-da6dc0ce1346","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":60,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"f03fdbf7-5efb-4b64-abca-55c3a5158eb0","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":60,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"98a0b573-3517-4278-814c-05d68b4365b8","block_type":"box","text":"II-24","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ad2f9474-7462-43a8-9a7a-7aa469e192af","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec5ae06b-b5d0-474b-80be-dea5e8f6f400","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":61,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"f61e25f6-e003-4cc4-a8de-69371ea50192","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":61,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"99a564f6-f264-4bec-898a-7c6dc3b0c66d","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":61,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"2cffa397-b80d-4058-bc29-37c7bbd2a157","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":61,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"116846df-c4a4-4e5b-8b92-72a377c23f61","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":61,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"156a4fb1-d6fc-4a39-9200-3b4554b130b2","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":61,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"b97e8c01-2f37-4758-818c-9def3a6e6c3b","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":61,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"404dd764-5ba9-4796-97e1-0bc64fd083b6","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":61,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"f59ca9f8-7671-4cad-b18d-c744d0ea114f","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":61,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"ae1975c6-901f-4500-bfc3-1171ccff5894","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":61,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"2ca94d38-6264-4525-a136-31cf6aa1bd99","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":61,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"109f46d5-9763-40f5-96b4-05c9660f32f0","block_type":"box","text":"traded.","page_number":61,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"fccf3eef-4a63-45c8-9bfb-89534ca6fd79","block_type":"box","text":"Currency Futures.","page_number":61,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"e012a926-bed9-4dcf-a069-1c02b732d18d","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":61,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"4e6c6d76-b47f-4f2e-8abb-415c50bca612","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":61,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"cf42bc09-6ba9-40d5-966f-4a9afa5dd978","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":61,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"f8bb22b5-7066-40cd-aa1f-608558ec42c5","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":61,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"f92b6c00-3319-46c1-b090-39de363f1522","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":61,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"454eddf5-1f50-4c97-a5bb-04ad149afd2b","block_type":"box","text":"Currency Options.","page_number":61,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"8543179d-f25b-4d15-9377-89f776d5f1b4","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":61,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"9b6dad66-e388-4668-a28a-2ce267ad4984","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":61,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"81655a3d-0fb7-4084-b976-6b4229a59127","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":61,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"b7c505c6-e74f-4428-b9b3-f9ea3583d953","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":61,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"0e65ab8a-8189-4a9a-96ee-d38e9f66d9cb","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":61,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"0c09ea62-40ca-4d03-a746-e6384154e64b","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":61,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"ee87c717-1c66-497b-a72c-7b1ea602ae8b","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":61,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"56db4abd-6f2d-4912-8e6d-c572c292a16d","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":61,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"69ebece7-3d79-44fc-9690-2b13335da09a","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":61,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"70f4249d-c92c-44fd-8d8f-e662f71bff20","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":61,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"e38fcc96-3adf-4fdd-b119-7368e9e3ce53","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":61,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"0f80d415-b19d-430b-b3a7-25d98dc75774","block_type":"box","text":"Currency Swaps.","page_number":61,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"a6e2cd0e-f944-47d7-872a-cac2fb3f81a2","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":61,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"5eaba655-a06e-4bc4-a2fa-3c77a5d86801","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":61,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"8a125363-2909-4f45-b0e4-2dc1019abfa6","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":61,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"964a4a23-ce61-4c7e-8af2-feb0dd95cf0d","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":61,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"cfb25763-7d6c-42c5-8375-95e129c925e5","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":61,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"8a1ebb87-4787-4e11-b9e9-1534e2128f23","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":61,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"ace4051e-43e7-43bb-9909-03e2378a386f","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":61,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"7a2cb265-2347-4ae2-857b-fe8299dccefe","block_type":"box","text":"Distressed Securities.","page_number":61,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"04ae1169-e73d-47b5-9cc4-beb006a7ad5c","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":61,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"060658ba-efc4-4a77-818f-7d9023c2f2fc","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":61,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"ccae233b-8f27-4686-be34-f99e662f7a94","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":61,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"7a3cc5c7-bb4d-4cf6-b4fc-13bf22cd6cee","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":61,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"e9a2ff41-5c27-4491-ab2d-4ebc0c3f6d07","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":61,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"2d5eba69-0f50-4a3c-943d-8a65432a8a36","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":61,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"b8b42086-e531-44a7-8984-8e231255f250","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":61,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"1d510006-5a04-4d78-8756-e7cb46ad8a8c","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":61,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"28346352-5ba0-4245-b037-8f74b36cc9ab","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":61,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"4a4157f9-50fb-4807-a52f-deca5d4b1bc7","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":61,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"a06518ef-6cad-49c3-add0-eec6e0002325","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":61,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"90536443-0912-49cd-92d2-0ffb532b57fe","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":61,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"53a3a449-3180-4d60-9468-d1ee54a04237","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":61,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"126500d2-22e9-41e7-ad64-ed3fcd2f5a1d","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":61,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"78a6a9d4-2458-4b87-a8d1-03397bad4ed7","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":61,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"c9b7f0c4-d19f-4c46-839a-656d1c7b3132","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":61,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"cd3d16e6-7599-4d5e-aa81-8d3b037842ed","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":61,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"68f731aa-5346-4598-bb03-74a7537f1d00","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":61,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"7fc179f2-3f4e-45cb-b189-5bb0721dd4e1","block_type":"box","text":"satisfied (","page_number":61,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"f446e72e-eb29-4642-9efb-3ed7d67b7f67","block_type":"box","text":"e.g.","page_number":61,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"7629defe-2f4c-42b5-b0e1-1bbf31c1f85f","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":61,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"156ec070-1697-4d98-998f-a675b0d9c0b9","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":61,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"71010a59-2a44-4de1-b293-6be9d8203d96","block_type":"box","text":"II-25","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b1f1003b-cf92-46e9-9234-5d43ee9ac6e1","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"477f06c3-e75d-4b0d-8ecb-12c476e2e90b","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":62,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"eb04c78a-c2f4-471f-a009-9f70a38cec53","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":62,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"51b79cba-a1bb-4f73-bff2-a82871197dc4","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":62,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"de316a4c-77bf-48a1-8899-47e5d8491c90","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":62,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"4da67713-4594-4f76-a4f0-2e02f467f452","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":62,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"7d3e4dea-b6af-411d-b5dd-fd3cd7a98779","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":62,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"e838730d-5f9c-456b-a76c-88780e393ee6","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":62,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"b2469613-c27f-4746-b48c-90b98f6b7acb","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":62,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"93f3ed0c-c1d8-4471-a9eb-befd4e053ec5","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":62,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"83e2d1e4-fc22-4b7a-b3c1-d5db0b8503e7","block_type":"box","text":"affairs.","page_number":62,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"bd4bace0-f2bf-4bf2-80e8-2df8f5d8b1a7","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":62,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"cb9e5a71-934b-4040-acd6-004d68eb36c2","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":62,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"762f13fc-aec9-4e0a-b3fb-12af0329c9a1","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":62,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"ea1ff469-f34c-4813-b18a-1ef6c018f0d4","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":62,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"07953e73-99bc-4a83-b75d-3d23760a1c49","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":62,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"a382a919-686d-49e3-8dc5-833354974530","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":62,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"ae0f4bcf-6b5e-46c1-b5e1-16c487f5400b","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":62,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"cddfb12f-b776-45d2-b0b3-f77fae72a160","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":62,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"9c97ce87-8060-4be4-a17d-bb7be246a94d","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":62,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"9edfc9a5-7c93-4a13-b89b-22079228d8b2","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":62,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"25cff38b-ee3e-40ab-a17f-729b0aa9b7ff","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":62,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"f81d80f5-128f-448a-955d-51386a3ca41b","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":62,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"1e5b2c3d-76f6-48ca-9d34-7e705ababd4d","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":62,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"0ce78d58-98dd-422e-b132-d5775fa00c4f","block_type":"box","text":"Equity Securities.","page_number":62,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"03b3c36a-14c0-4260-9e74-499b64b21397","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":62,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"bc60cfdc-9c64-400d-857b-d194ce1ca8c2","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":62,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"cd6aa82d-1788-4233-9105-b54d62fae076","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":62,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"a576abd5-bbdd-4207-a374-494d5096ac0f","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":62,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"0623fa7e-02fa-4a4e-929c-f115205819cd","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":62,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"1a5c5822-4947-40f0-9464-0d9fc8df1bcb","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":62,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"c5d370fa-877a-4b98-ba94-f0f523762c60","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":62,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"ca86681b-99c4-4ec8-910d-d0028422bb45","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":62,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"d484d26c-bcd2-4b27-b292-5b63b4202bec","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":62,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"c75daf04-ad01-4f0f-9a30-6a24616b37a2","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":62,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"fe54a967-e3c6-460c-bea0-b1e3bdc8c70c","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":62,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"d9d798e8-f347-4de3-89e6-d21b24101ab2","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":62,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"1acbd723-0e95-4014-9ea9-cf2130e8c595","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":62,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"14b7df40-023a-4502-bd40-5e61d16ee36d","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":62,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"44f1ab86-21bb-4f85-9137-3ab8c740a957","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":62,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"5bdb9b22-6df7-43d7-b464-72678794a8a2","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":62,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"eebd4695-7f08-49e8-ae67-08d6cfc21aa2","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":62,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"bdbaf9d0-abe1-40d0-9ebd-71ba7ba96aac","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":62,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"a96fb4a3-460e-487e-870d-8be21eac20c9","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":62,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"f2d5a0b7-b285-4573-9a1d-80304d2251d8","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":62,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"035d8b48-aa59-4d97-a90e-2d83aed99326","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":62,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"f7747eb1-91e0-4dfe-b7e9-255738eceb13","block_type":"box","text":"initial public offering.","page_number":62,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"58eb5260-07d8-431a-a758-7f59a5d815f7","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":62,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"3d58aff8-3311-4b16-b1cc-a2f38a2b91b7","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":62,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"9b8a499d-e2a9-4cc5-bff2-fc3e364d4499","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":62,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"3a34cb42-458f-4829-8452-6ab33489e97d","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":62,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"43f2efb5-cf94-456b-8430-8c1754a20b29","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":62,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"ee75fdff-3390-4526-a9b0-6e2cf2df185f","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":62,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"72b667d2-65a9-46ed-9b82-b9958da9362e","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":62,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"a1e2e48c-9295-4b39-98ee-625a50317fee","block_type":"box","text":"more established companies.","page_number":62,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"15e855f5-ae69-499a-8368-a205e128c9fb","block_type":"box","text":"II-26","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2ec12375-18c1-4514-898d-459ae82e4eeb","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"270aed0c-cbdb-475f-be04-bd18ff7092a6","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":63,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"dafd3de5-2546-4ed5-a74b-cd6f2556f2a5","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":63,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"ed9ea593-81eb-4add-b51a-bbec38e213af","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":63,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"003da98f-41c0-4199-8cfc-c8b8c58467d2","block_type":"box","text":"below.","page_number":63,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"c293dfbc-165c-48bb-8928-48b81da80c40","block_type":"box","text":"Real Estate-Related Securities.","page_number":63,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"50a6c3eb-6951-4595-ac73-78cfd7aec54b","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":63,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"d11c1ec6-33f8-442b-bc50-eee516ca8b1f","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":63,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"a5e32826-03c8-4cc0-a5b1-1927b888e609","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":63,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"8cb29c93-71a5-4a08-a04a-59f1153f0c71","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":63,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"03bf7b1d-2494-4aff-96d3-a6702a02a18e","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":63,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"abbec5cd-9f48-4d61-a7db-66646fab4b06","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":63,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"0170ee21-e33e-47a4-84b0-4e7224178cef","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":63,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"0e6a44f8-b932-4345-966d-def620ecee46","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":63,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"7c5b880a-9902-4ff5-a5f1-7fba3bcd58e0","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":63,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"1e8fa270-516c-4a55-994d-9934415978ec","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":63,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"45061217-638a-4a56-81e1-d4524c7c3dbb","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":63,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"2bd0dc6c-4ac0-4bc2-abf1-eaf9c7232fd4","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":63,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"248c7c37-d446-4b26-afe4-c25418c69904","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":63,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"feb07fcb-d9b7-49f8-8597-7bc1c15a220d","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":63,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"0766eb31-71bb-49c1-8454-f111d35439ea","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":63,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"80310614-cb15-41e0-b57a-8ac620d993ff","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":63,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"f3776eef-d7c2-4404-9840-4240a744d9c8","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":63,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"548ce2f0-c5e1-4040-9a97-f72c7a3252ee","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":63,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"88aaafdd-e946-467b-9601-1cf7a4f17256","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":63,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"3dcb07dd-c33e-4717-8f92-3f067cf65b66","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":63,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"9b90e5d5-28ea-4551-ae96-1e43631bb385","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":63,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"307cc46d-fff2-4698-8d59-b1344c4efbbd","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":63,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"fc3bf516-940f-4ab0-90eb-7eeb597318fb","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":63,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"c56d8d9c-7a67-4137-b90a-079a38f8a800","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":63,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"ffc40b44-267c-4eb2-acf8-7606edbf351f","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":63,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"382fb3f8-f627-4146-b497-1e6d335e0b72","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":63,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"1731bc18-afa4-44fd-b8af-a1bc75e2e305","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":63,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"99f2a0ac-564c-4f2c-ba4d-52f1fd9e4b25","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":63,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"af42fce1-816f-4f1e-8404-bf421341584c","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":63,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"d72df785-291d-453e-87c9-aef0a72fd7e1","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":63,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"d487aef9-a882-465a-a16e-575e5eae6a66","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":63,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"7438afb6-90f8-455e-89a3-c95841113bf2","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":63,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"69d23f68-65c2-42ff-bde2-b727afd2eb84","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":63,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"42e54002-228b-4240-b78d-02b685155224","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":63,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"f3f36746-631a-471e-b895-c5099a06405c","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":63,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"e0c25d6b-4b1e-4bc4-8dec-1e2743d56e24","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":63,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"0582161d-f722-412a-a467-a22eabcb6879","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":63,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"2834dd47-fbb8-4182-bb32-9ff7164f4a20","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":63,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"c278b042-e43c-4047-81e2-395b3dae049b","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":63,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"d3300731-c625-42d8-b1be-c73268bc4b9b","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":63,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"adff84ed-ce18-45b6-b0fc-d82bae67767c","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":63,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"cca1e1b9-6fca-4705-97d3-f622162e1126","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":63,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"45ce43fa-397f-4334-9d72-e5909cf22930","block_type":"box","text":"cycles.","page_number":63,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"38546c82-f1b0-4b5d-a012-82307882bb95","block_type":"box","text":"Tracking Stocks","page_number":63,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"69882f05-afaa-46c4-8fe9-86ee06cf2a62","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":63,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"4a331fd0-773d-47b9-93f7-5859a215652f","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":63,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"bfeccfed-7d92-4164-b75b-fc8a898797ed","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":63,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"e9165a1f-4001-4df9-9df4-ab9a52ff31f2","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":63,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"47871f57-65f7-4d7d-81dc-93c3f515f9ad","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":63,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"2ac14805-c55d-4a77-9d35-0f4b01ea5655","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":63,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"70af3a87-1d79-4a99-bace-571e02c1cdc4","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":63,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"94120411-8717-45ca-b60c-61f28e6e6043","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":63,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"eb269ea3-5d6b-4b6d-adfc-23c58f34cc11","block_type":"box","text":"II-27","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"edae98d5-a3ba-4233-b8d6-3d9de2e81922","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e6b9da7-8bbc-4b70-8966-15c35160686b","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":64,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"d3135d91-c305-464d-b6dd-722273da5152","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":64,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"020952b8-2d1d-4d8c-a20c-2ed4f0793875","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":64,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"0429583c-fb17-4f76-98c0-fd091d5403fa","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":64,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"82e45bcc-1ac2-4c12-a2ae-4d4bddcb83fe","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":64,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"fff2e690-ef64-4f63-a60e-57605e62a5f4","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":64,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"51e4ad25-41ab-49ea-aa32-6bd29516536a","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":64,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"a2d7fa55-678f-40be-be82-c2a4361c2e9b","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":64,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"1f60fa86-c996-4991-96f5-e5c7ce8d5701","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":64,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"a024023a-24f8-41dd-9bdc-53b074746c75","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":64,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"abd31027-870e-4631-bfc3-87f06ae3fa8a","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":64,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"0d72c4eb-ee28-40bc-a8cc-7a9d2b2fd9af","block_type":"box","text":"ETN.","page_number":64,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"bf011291-d24f-4ba5-b3d3-b82e552e555c","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":64,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"7650527c-5bf6-4fc5-8faa-86c127ac3560","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":64,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"fbad409d-3647-49fd-a067-a1e22e2c3f06","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":64,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"2ef61999-a7f2-45c4-b1b5-56193ae57978","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":64,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"297fbd8a-c3ff-4dce-a524-e5ba18c1a7b7","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":64,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"8e590503-d9f4-4b9f-bf69-f2c429113221","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":64,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"6144c998-5f8a-4e37-9e0d-c328d8f7bd80","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":64,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"48aa601b-9142-4644-917c-e945d6b55221","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":64,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"ace704da-4d0f-4325-bc39-73044928f4c2","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":64,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"8cff9260-4485-4138-aa6b-25c0bcc2cd59","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":64,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"f4c7a043-50a8-4930-ad75-7978ef4e24ff","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":64,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"264ae78c-1097-476f-9029-fb1e6eb69485","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":64,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"9f7e11ef-a804-4949-807f-7e55b9749580","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":64,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"bbc74fba-e7c6-4e2a-afe0-f5faaa73dbde","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":64,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"9db463ef-2173-4f13-903e-f8056aca5849","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":64,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"2b2e9205-1e32-4a89-b242-63f801dc9dc3","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":64,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"27aef505-fc18-4469-99e5-e3c12d62ab5e","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":64,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"8a25005b-2019-4211-b4b7-2cf127cffba4","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":64,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"1303d846-b964-47c3-a00c-b32998311384","block_type":"box","text":"Foreign Investments.","page_number":64,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"55e50a69-d81c-4ad8-97e4-e07e79940750","block_type":"box","text":"Foreign Investment Risks.","page_number":64,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"c9641091-bdc0-4be1-b919-82f838f2dd5f","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":64,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"adaacad0-2fba-4de0-bd12-dfe63c6220de","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":64,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"884852c1-bf66-423f-a82c-7a0b2bfd4a38","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":64,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"38fc988b-0091-42a4-b45e-07cb21a1806f","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":64,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"37ccfc3a-0a0e-4790-a324-3e184e547ebc","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":64,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"f0ca872f-bdaf-4893-9e23-d137bf9bb6c2","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":64,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"1b6e78ee-fb97-44ca-907e-107a623cce98","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":64,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"4b6e9013-9ac8-43b3-a6ea-5b88408bac0b","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":64,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"5e0f9440-14ca-4d7f-b668-d85fa7e92916","block_type":"box","text":"benchmark index.","page_number":64,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"59c12be2-e6ee-497c-8735-8abf3c2af796","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":64,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"40f92c53-8c1f-4819-9e21-0a0ba96b1319","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":64,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"7848325a-1fdc-4b6b-8a38-ee03d0645793","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":64,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"631da0c9-b950-4371-8e7f-e58b0f25df08","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":64,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"bb16d16d-a442-402e-9c7d-d406da231a38","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":64,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"431ac535-f446-4095-a9e9-a496bfda94e2","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":64,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"e7f802ac-cdf4-42ce-88f9-7bd877a0c2f4","block_type":"box","text":"securities and zero-coupon securities.","page_number":64,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"466ffe97-85dd-42c8-bbe2-af7bc0f3b0d9","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":64,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"114e7f8e-306e-4203-8d5c-3e3c8f21ff53","block_type":"box","text":"taxes.","page_number":64,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"7223bc46-fa94-43ff-b201-c895c3b0bd8a","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":64,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"f5686cdc-8df3-4df6-8010-0fe437318278","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":64,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"feb2cb5e-8844-4675-a542-4ef675a3cbb1","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":64,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"b227e0bc-1e72-4403-ad93-42a77c1cbae8","block_type":"box","text":"II-28","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb33400a-db60-4cbc-b192-5261e666ba86","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a8c715c-1b51-4f2e-b246-c2be47d93fb4","block_type":"box","text":"underlying security (","page_number":65,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"75d95918-4ce1-483c-842f-81881a5afd78","block_type":"box","text":"i.e.","page_number":65,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"7d9a6b75-5ce6-4ab5-9cc3-2e93a6cab751","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":65,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"cf72915b-70d3-491b-a461-710031a73c23","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":65,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"ad1e4a90-462e-4d5b-8353-46c84c870518","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":65,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"1cf31dcc-bc60-4e70-8a60-4663ed6f1bbe","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":65,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"9e94ea92-d701-4026-9f2c-2049faf4f956","block_type":"box","text":"Foreign Market Risk.","page_number":65,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"cac6bf2c-ec65-4615-bcb2-2a57b5fe377b","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":65,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"08fcffc1-b741-40e2-8c83-f5844c10a524","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":65,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"baf31baa-3dbf-431e-8909-498308b68403","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":65,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"d398001c-8b13-4c4d-8b28-05150343e430","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":65,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"13b20548-c1fa-49b1-95c6-d7cfcc3f1213","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":65,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"94a1e2dd-2a2b-4a22-8ea8-ae774c7c4ec1","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":65,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"99af2940-cd4f-4227-8f60-ffb3cfe1a1ef","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":65,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"79c3870d-fa83-4906-bcc9-b0bd69b83470","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":65,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"b5df3c85-572a-46ae-b4a7-1bdf0e6b5b8c","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":65,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"24ee042a-dab7-4e06-ae35-05b65ca5a551","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":65,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"af15d758-57f3-4435-bef7-a3daaab8ed8f","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":65,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"4e2008c9-5ed5-49b0-b7f0-32e73725755d","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":65,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"fe818403-3210-4513-be1e-d2f6a93eea81","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":65,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"60423dfa-f79b-410c-ab1a-53f93ef952aa","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":65,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"e2e94bf5-d253-42f9-b962-442cc45e5d76","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":65,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"655ec321-7aff-483b-801a-76e38b206d95","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":65,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"d5a03d3c-617f-4931-ad42-dbfe78caf414","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":65,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"a8255fea-323f-4658-a049-da4360905708","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":65,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"21dc9384-97ab-4192-9191-6ca6c84ef1ce","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":65,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"57dbc04d-8e34-4a49-844d-4cd96fb9d5b2","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":65,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"2e8cf65a-d50f-4ff6-9cc4-b6587fa1c67f","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":65,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"06ea2bc1-5f44-4eac-86e2-34b9a3a44bb3","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":65,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"9212d878-6d29-4b81-bebc-50644c62abe7","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":65,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"b53e8ed1-4108-455d-84b2-224af5a20968","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":65,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"2a85abb5-52cf-4bd3-b1d2-0118a5128d23","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":65,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4604ab27-0952-4b90-bd02-31efdc8b54d9","block_type":"box","text":"Fund’s operations.","page_number":65,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"f13b2ed7-b110-4c67-a00b-846b1deb27e5","block_type":"box","text":"Foreign Economy Risk.","page_number":65,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"788b524d-6e82-412f-8bea-1ea0f4a7f34b","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":65,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"344423c7-9ac0-40d3-8c3a-d17f250e1d1c","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":65,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"5c6a8276-537e-42a9-b071-5aa31a3bfff3","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":65,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"dba66edb-7c3a-48bf-8e65-65a8a7379ead","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":65,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"675e6796-fa59-42a7-a8c3-72e187b20888","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":65,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"c111b36d-db61-49c3-a48f-15a6c8537e60","block_type":"box","text":"measures.","page_number":65,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"dc9d0f76-1946-45a0-acaa-db51ff2b855f","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":65,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"6ae7f68a-0397-4388-8202-767ca9e70c2c","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":65,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"eb7cd811-69ec-4e0b-b7ce-fb7fb7b7cb7f","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":65,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"b3b658e6-9ca8-4867-9309-f5aa643deb58","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":65,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"8119d6c6-a399-437f-a629-805a5fe3ed63","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":65,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"29fb82c7-419e-480a-be94-c1cdbb4aaedf","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":65,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"708ebb23-1cdd-44ab-8388-d1dcf050ea30","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":65,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"b613b6a0-1801-4231-b623-0697fe5a4fe8","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":65,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"bfd183cd-b21f-403b-bad8-23c2607effb0","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":65,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"cc51ecb7-7378-4b54-bbd4-a95cdd88bd33","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":65,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"69aceeaa-60dd-42a8-9b29-34c5bbfbf3cb","block_type":"box","text":"United States or abroad.","page_number":65,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"e67b320a-40ee-430f-be6b-65aabc9b6862","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":65,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"7452c84c-00c9-4596-b68b-90c5ff5f93b9","block_type":"box","text":"Many foreign governments supervise and","page_number":65,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"a29ab5ef-2490-49b3-810b-0197c948b8aa","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":65,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"2596bbc4-9abd-4fb5-9b61-bb1f39164bdd","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":65,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"35da03bf-876f-4d8a-923f-717272d4c13d","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":65,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"3516a4d9-1b9e-4ac6-a6d9-3d4818cababd","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":65,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"52c9626a-5848-44dd-827a-8aa9bd628e90","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":65,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"38c143a7-9322-4cda-bd7e-7ef6af20e849","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":65,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"d7b5e1ae-54eb-4441-8572-d735f56c9ff1","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":65,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"26461582-0e08-4aef-b82f-9a61e15dda10","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":65,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"6dc5c6c1-ac68-4def-afc2-3253455f62d4","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":65,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"400f4f65-07c0-44f5-942c-e59a54c72566","block_type":"box","text":"II-29","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cf4b62af-356f-4b60-875a-234e998f3f6e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d890184-37b7-4ce1-8799-b527f860d6b8","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":66,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"a0ebe937-148c-4c94-86ae-c9d97796ed98","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":66,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"2ec0afe0-9c79-41ae-af81-131932261213","block_type":"box","text":"investments.","page_number":66,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"e6481007-b557-4503-b4d9-42b1371ed26b","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":66,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"159344a0-1a2d-4936-aa8e-230146afce03","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":66,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"7b68e1d1-b915-4bc4-9e51-e009cb353f48","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":66,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"161a87cf-76a4-40fa-b77b-30b29587f168","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":66,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"df17ef23-0892-4936-83f8-25bb91401699","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":66,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"61ce7177-267a-4b98-84aa-26ac394b9cd1","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":66,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"978fa452-fecb-40e3-ad58-03be92327c29","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":66,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"b8365b9d-ae74-4c9a-b0b1-dcbc1442208d","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":66,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"9f76e0ae-e964-46e5-b6b7-d65adc481989","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":66,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"e972ec31-ffdf-4cf7-90ac-69684e51ee80","block_type":"box","text":"States.","page_number":66,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"89a0b873-7ea5-4607-a5d4-b1ba35da05ae","block_type":"box","text":"Publicly Available Information.","page_number":66,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"662ae299-c0ce-4962-a195-48c9c8bbeece","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":66,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"d1ce4971-a419-411b-b82c-a9be314f4e64","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":66,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"3d3c4617-e1c1-4513-95c9-256c140618db","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":66,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"7d2d71a6-c7cc-4189-b00e-1c0d3ab87253","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":66,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"c349b3f7-86be-4f79-bb94-08ba3d291325","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":66,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"9fc491e9-5988-4430-aab2-a5db7f07e46b","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":66,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"12f6f027-b08b-4bb1-a7cf-4d2b21379637","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":66,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"11019259-8ecc-450d-8e35-663ff10ecaf7","block_type":"box","text":"United States.","page_number":66,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"dc12c2de-14ed-4451-b567-7c63b625fa53","block_type":"box","text":"Settlement Risk.","page_number":66,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"5a7e160a-274a-4954-bd8f-41c918cd9650","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":66,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"9c26a5a8-7465-40f9-8c62-0f43673a22f6","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":66,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"c0ed0dd2-93ea-4cd5-9f62-b11b1e3f917c","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":66,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"bd6efea9-602f-4a5e-aa87-6a924b6e77e5","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":66,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"cfbbcc1e-5644-4a45-be68-8e4d013dc159","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":66,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"30937639-54ef-4722-8671-70b3b03f1dc8","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":66,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"6f5820c3-cbe6-4d33-8c21-26ca0e25f1d5","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":66,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"dce654e1-f7ca-4f66-9bf7-24a47d0d73d8","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":66,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"4077929f-7c1d-4b99-91fd-7868e379c614","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":66,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"7d94d627-a7e3-45f8-b96c-8618cfa056d7","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":66,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"f8e66a2e-67e3-49c6-aabf-1b1b950dd860","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":66,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"d84f956f-d786-4e0b-b2b0-17b2de5ee739","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":66,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"ee949a3b-3706-4605-8cfb-56f0f2e08202","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":66,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"96242ee0-29c4-4159-8b1d-1a32625a6af0","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":66,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"a850ed52-d3de-485a-b594-08b1fe4ac757","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":66,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"f19d09bd-2e5c-4cc5-b84b-8d147049164f","block_type":"box","text":"Sovereign Debt.","page_number":66,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"9a412850-51c0-4128-a56e-a53ae3bf467c","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":66,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"19aad6a4-5d31-412f-9484-9750a906e7c8","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":66,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"fd4a0f72-7c33-4453-aeac-f1500ad0ae9c","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":66,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"3740c461-89bf-4564-90d0-0c2fa491a369","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":66,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"cf2c00e4-617d-4d17-b06d-d30bc69fe6db","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":66,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"2134084e-e948-4705-a8d5-8d36ec5256da","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":66,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"48c93971-f7e3-4b68-86bd-3025e6034bbf","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":66,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"a08b6a8e-0791-49a5-9c55-e04de956afde","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":66,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"bab2fcd0-1b72-4b5b-9fa5-5c993b464b4e","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":66,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"40fcc307-21df-4173-aeab-43b4516a20e0","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":66,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"8f2cf50b-ac19-4bbb-906a-5d0e4140b9b1","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":66,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"b89d5efe-ad45-4b66-987f-1fe126597ab3","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":66,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"273a192f-5b81-4ff4-9292-5fd587d6ce08","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":66,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"2a520b3b-f3b9-4484-b854-9f16130a7241","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":66,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"60a44ee3-65fd-4580-91b4-e2af7ce33f60","block_type":"box","text":"debt.","page_number":66,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"9fdd75e4-cf17-436d-be94-90208cc4887e","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":66,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"8cf3d35e-50ff-4805-a6b5-3f8de19ab709","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":66,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"3922480c-e0f7-46b7-8c50-8d97ba47e699","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":66,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"350ef023-adac-4480-b44b-0606710a7bc6","block_type":"box","text":"II-30","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6be68a2-0dd4-42fb-bd2b-065dbbed8145","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7bdf382a-5426-4a57-aa8b-c3b112bbdd42","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":67,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"14d1f4d4-526f-469d-a503-beda067e0735","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":67,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"1a2797d2-0097-4c54-bfd7-9c20f0aa9cbd","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":67,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"0980ae05-1abb-4b1b-8c33-eea682fab0cf","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":67,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"982ddbc3-04e6-4259-8347-b84c28e34c8f","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":67,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"19af3890-5b0f-4b2b-b928-e63a66da9a30","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":67,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"958ca984-a91c-4fed-a97c-044922276068","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":67,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"627c072e-01ed-44a3-ac77-9065310891e0","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":67,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"8d4ba3fd-52ab-471d-9c72-57e2f3d93ea1","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":67,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"ee0335e5-dc34-4b4c-a77c-9ad176362273","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":67,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"606c48ba-13d6-483b-8df5-c3638edef962","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":67,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"01428b7b-bf7f-43b1-8ff2-a5ceb238bf2f","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":67,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"a33ef3d6-91d9-4692-ae32-ec89fae771dc","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":67,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"106f202f-a9c3-4642-884b-021da77c401f","block_type":"box","text":"in the Fund’s net asset value.","page_number":67,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"e129468f-bd44-41a6-9e3d-0f79f4a30caf","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":67,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"cf783a5a-b213-46b4-ac0b-008a4b447930","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":67,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"7ce00aa3-0ac4-4c78-b9da-580539464e44","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":67,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"8017098c-0c51-4484-b04c-6b744f35e597","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":67,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"4d6354c8-4681-4a75-8d6a-b149d4ba27bc","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":67,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"3b5c2ab0-da13-47ac-becb-e554b3c0f400","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":67,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"9f9903cd-cd3c-4fa8-9ae9-a87d5cd67117","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":67,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"52bd1e97-f355-4967-a8c5-045d75d3c11d","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":67,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"acafdd3e-e2c9-43ce-8209-69f7eda7597e","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":67,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"402830a8-3417-4813-b3e2-9e85b9a43245","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":67,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"28f2914b-4b11-4962-a091-e4922a4fa6d8","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":67,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"b8b9b9d9-ed31-447d-95ad-dc1e3231a65a","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":67,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"c176bc64-8e52-4df6-b7cc-ce9dcab73255","block_type":"box","text":"United States for trade. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":68,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"9aa0ff15-93ef-430c-b99c-b9ea2d77170f","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":68,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"220f02bf-a5bc-4ece-b6fc-f62ceed7e688","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":68,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"877e5fa9-db0f-4cb7-a0f8-fb1a9ab27f2e","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":68,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"37550686-4c95-418e-a05c-18bf53db8ae6","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":68,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"813f1251-02a8-46be-9a5c-9690f6b3755f","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":68,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"de85bcbc-cd15-489b-99ee-547983ddce6f","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":68,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"3704110f-31b6-4139-b30d-cdceb999d535","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":68,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"e11958c3-0c7c-4375-b80f-05f1c2215ff6","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":68,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"47f982de-bb49-45dd-a761-5ca9c0c87d0e","block_type":"box","text":"complying with various new or existing regulatory requirements. 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If the securities continue to be included in the index, the Manager may underweight or","page_number":68,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"3ac9a95f-dcee-4ab7-846e-fa8537cc626c","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":68,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"2a62925d-12b3-40fe-8d0d-ef6524e735cd","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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BofA is","page_number":70,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"8d88d104-515f-4ada-ace3-a9217406e659","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":70,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"06d9a706-c04f-49c0-8119-3384beea538c","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":70,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"8b46aecb-c708-45c6-95ed-2f2cd2f4ebb4","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":70,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"f1008912-b210-45ec-8457-e224eec14967","block_type":"box","text":"completeness, or otherwise.","page_number":70,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"a2246583-f40e-4400-8fff-c0da1d3e5ae6","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":70,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"b89c2dc2-9f6e-4e7a-9aa2-dcb0338f248a","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":70,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"616f1b8a-e74c-4b84-a460-5cffdb33c071","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":70,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"3bc73362-deb4-405d-8354-70e7b9563c89","block_type":"box","text":"Indexed and Inverse Securities.","page_number":70,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"7a8e93aa-f91e-4980-aa76-d5e8482c6ae0","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":70,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"ff8919f1-bc56-45a3-a8dc-b472fd6688bf","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":70,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"51ea3df9-79a9-4010-a298-fe1cc6267902","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":70,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"b67d8551-35fa-470f-ba16-524f1f41aca9","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":70,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"44f1fbc2-9ffd-4321-af1e-d18fea982206","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":70,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"5a3936bb-a551-4402-bfbd-532c0b2e3d03","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":70,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"8e343611-ee41-482f-91ea-3d07d1a96e4c","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":70,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"3c0fbbaa-6293-4398-ac6d-bb534094a9b1","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":70,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"9223d78b-dd9b-4fff-9f82-57863fc9f542","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":70,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"bca1fe5e-4968-46bf-b423-a417aa1a567e","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":70,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"a397ad72-500c-4820-bc1e-b4ae680255ca","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":70,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"e64ff106-4524-4d53-83a5-c42966e24fb4","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":70,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"a6eb25a5-817f-4cf9-9db0-31e595f814ec","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":70,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"5e47c4dd-3ff2-4753-80cd-b3ea116ccdbc","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":70,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"7a8d9992-1aab-4455-a7dc-c4644fa760cc","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":70,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"1311e566-defd-4cf6-9e56-cb33335e6c03","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":70,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"8e8f3f1f-2b7a-4ec3-80e2-d93679b896f8","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":70,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"a4dae65a-75c1-4fe0-9446-9a0be0f888a1","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":70,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"e03b8bc8-19bc-4571-a51a-64d6c2cad942","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":70,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"eef1d8ca-401b-41bd-8da5-5adde95c336b","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":70,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"7b362b99-98ff-414a-88f7-bf9f0f6247a3","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":70,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"22dbb1f9-2947-4142-af05-9cf25b5c9e9c","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":70,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"42c2313b-945f-46e0-a2f3-d3c79cd2e75f","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":70,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"6faea8f6-7162-4897-9b79-30013dbdd440","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":70,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"eba2eb5b-6664-4dba-a8ba-084819e5e40b","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":70,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"85e51434-deec-4731-8145-2994ee6ca4fe","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":70,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"dc1c53b1-7a55-41e7-a6dd-2cdd2d9295cc","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":70,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"1f020dcc-7f2b-452a-a417-bd2cea279438","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":70,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"ee2d293c-6611-4a82-9662-2ea45ff12406","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":70,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"709039a2-7499-4e65-a236-8916d52272be","block_type":"box","text":"Inflation Risk.","page_number":70,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"03a301c8-72b6-44a3-8642-8a3296e4f246","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":70,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"179eb76c-5767-4aa0-ae10-76e7872b846b","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":70,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"33a1ee2d-71aa-4b47-af0b-d4db502af0e8","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":70,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"6ae3ce0c-c582-4de7-a550-410cc955f8ff","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":70,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"74e1c150-f82d-4b26-ada8-eb3ad965955e","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":70,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"7ed5e894-3c54-4bc6-af8d-acaed6e51493","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":70,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"7e5b8532-9320-44cd-96e1-cb141f230645","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":70,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"bfce6ce7-897b-4ecc-9a97-bd8382eb11ca","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":70,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"25881cff-2946-4024-b4a7-e7a1d9410f32","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":70,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"a453d535-a459-4eec-96b6-bb2d7c59c973","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":70,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"f0bb2ece-ac25-4b8c-b139-e49d2488a01a","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":70,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"4422c70a-2c81-4ef9-91e5-612103c18a7f","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":70,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"06fb383a-4efb-4434-86d7-9890246ce1cb","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":70,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"c906b256-eb8d-4772-a98c-dae84d7707a8","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":70,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"b3043f88-8269-4b0f-a21b-2e6555d289d3","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":70,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"1fa8ff67-caed-4671-85c5-41f0f32f5675","block_type":"box","text":"II-34","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"73bd6844-f549-4714-8a68-79bd921176b8","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e88d25f-ffab-44e8-8da0-814e7cb3ad0e","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":71,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"9151b63b-6916-454f-bf3f-cf759dbf3e8d","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":71,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"aa13cb82-202f-421d-a558-e5ffa5f5e40e","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":71,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"78dbff46-f81e-488b-ad95-e7046a3a0bb8","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":71,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"5d4a3d73-d9bc-4bc9-94da-01641f381f9b","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":71,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"50f9e2ad-5c28-46a5-9baa-c768aacd03df","block_type":"box","text":"be available for very limited periods.","page_number":71,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"1a03c6c6-569d-4475-9ac1-b4a05a2bff05","block_type":"box","text":"Investment in Emerging Markets.","page_number":71,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"cf6ab964-0dc8-4c30-b27d-1abb82a27818","block_type":"box","text":"General.","page_number":71,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"5335535d-3bd1-4bf4-8995-939d2da1a1a3","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":71,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"5c4e10e0-cb9f-4533-97e0-b00e52552cf3","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":71,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"3a4949ca-379c-46e3-b198-ec546c14c790","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":71,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"b16d91ee-599e-4c1c-bbcd-49eab6bc5de0","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":71,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"24eaaf50-3462-4ba6-a945-1d3d1a7d230e","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":71,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"7641f1ae-371f-4154-a6de-7da05067f7b1","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":71,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"162a10be-9bab-420e-860e-cb0f1bcc649a","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":71,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"3644d3b5-95f6-4390-abb4-4aeb26a7d6f9","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":71,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"48566326-20e8-4174-9b4a-60f7e763be53","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":71,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"7fa3108e-48b4-4e11-80f9-1c6d793346fd","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":71,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"4b33fefb-1b26-4a13-95bd-2fab84d630d3","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":71,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"2d156ab7-5173-4120-a0a3-30a2595bc3e4","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":71,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"1f485b9d-af2e-4b53-88bc-800598d0d39f","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":71,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"b8678c6d-1c4c-41c4-b68d-7b64cdd85f4a","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":71,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"a21c97c1-9452-4d7a-a2b5-58e725b272c9","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":71,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"7fc05e19-3854-4277-835b-28d24bb46cc0","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":71,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"abe7eaad-9fbc-48a4-9259-4b58d1ca5288","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":71,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"b229ecf5-856f-4a44-b586-b35c874bfd97","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":71,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"787f4415-25db-4ede-94f6-97b7694a9b6f","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":71,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"735b5d5d-980e-4684-8d0a-f1781bfc8d7f","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":71,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"22a4d7d5-bd53-4471-9883-6decf7252d7e","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":71,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"15268e2f-ea95-4f05-be38-5cd6eb20edbb","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":71,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"076b15a8-c607-4ea3-b444-06a989adbc94","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":71,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"39c4aa94-dcea-4b9b-9bd8-82be5108294b","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":71,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"431c92b7-bb29-49ff-84a2-08ef86c56a37","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":71,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"289e541f-fac9-4c94-bedb-55967b779596","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":71,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"80c86890-ac40-4b66-82b0-2bb3715c9816","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":71,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"c7ab2167-46bb-432d-a811-6baac36c5d84","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":71,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"52266905-32b2-46ed-bfe7-00fdc15abde9","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":71,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"2e778b11-3c81-41be-988f-4bb7bb5d1599","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":71,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"43a428cf-7d3f-42f2-9ab9-f241c711dc06","block_type":"box","text":"volatile than investments in more established markets.","page_number":71,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"cba2d734-0bde-464c-8d6d-ce03665bee0e","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":71,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"f8e29704-e399-4f63-9e95-a32875a6d8ee","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":71,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"2774e401-92f5-411b-93dc-8440e74f55c9","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":71,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"2d12a5db-3949-42e8-9c10-5fe0288b6341","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":71,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"979065eb-8046-484c-ac27-cc871018b89b","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":71,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"2a36ff88-b7f8-4a51-805c-e4789b65a805","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":71,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"d58ae04c-eabe-4296-b69d-851461843a6f","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":71,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"3643ff29-cfeb-4cae-b8ce-88f437af8945","block_type":"box","text":"acquisition or disposal of securities.","page_number":71,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"bf93ec54-4c6a-4584-8fa4-b0437d12dd0c","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":71,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"a6097620-d771-484a-9928-d354791dc37c","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":71,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"cb0ec895-1001-48b0-9fac-c11587147c6b","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":71,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"3e615732-3725-4ebb-bfc8-04ae78f4e7d4","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":71,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"b650c47f-9cb6-45ff-844c-78d8687a435e","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":71,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"9bedf5be-1b89-4428-9323-d75fe2bb52ff","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":71,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"35e46d64-4bb0-41d3-aff8-3412b9ea1f22","block_type":"box","text":"II-35","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"755d7b94-9a8b-4b34-b40c-0bfcef70d0fe","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e269af15-d903-4e3d-8c2a-4df431d59458","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":72,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"b542dcd3-3632-4b2b-b503-378604dc44a7","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":72,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"43b38bb3-33ae-4a13-9728-4469c52841a5","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":72,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"af00e23f-f486-41cf-a0a9-162373a963f0","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":72,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"a68013b2-f8eb-4d07-a371-6d6e7b8d941e","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":72,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"f318eae6-b737-41c8-aaee-09540ed80ed6","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":72,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"b8b40b4f-0c7d-49ca-a7eb-89c668183d71","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":72,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"a2e5ff23-6a3c-46cf-8e6e-f158baf65bfc","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":72,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"d0c2184b-9b6a-4104-92cd-7e0c233e6fb3","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":72,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"69ea9a13-6a50-4a45-aa32-92de629651c1","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":72,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"16c9d0c0-5efe-4cf6-95c8-fbe9285e2d1e","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":72,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"cead9a3f-8165-4dce-a946-272b9de0f46d","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":72,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"0babbeff-9744-467a-b5b2-65ccbc1c27e0","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":72,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"be3b0ef8-3bb4-4862-983f-11ce4cbbc202","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":72,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"2a44a591-5aee-4ebc-ac7a-c0f02412f485","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":72,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"e7ffb257-c2d1-4635-adb3-f7744790b57f","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":72,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"050fba30-06e6-45e1-be0d-048798ca7dfc","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":72,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"f80a3b67-fda1-4e31-ba1a-622e60563078","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":72,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"8abf2448-4e44-4ff6-9f63-bd1f97b0c77d","block_type":"box","text":"performance of the Fund.","page_number":72,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"b68d9421-3027-47db-9e92-5112fd9c9a49","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":72,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"83051659-0a40-4ab4-aec7-0e5ce588b96e","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":72,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"15a4dc24-b8c5-4ae4-8054-a2766bce9b43","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":72,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"50c0c4b8-eded-4def-8cff-3d9fd6505834","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":72,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"e63f1636-28e5-4c3b-a004-6a218c4be7b9","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":72,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"2e351bea-9eb5-4282-9b88-6e7114da3be8","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":72,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"3e4c19dc-b947-43c3-a549-5deb54dfdb60","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":72,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"5ea36494-8601-458e-88c6-4b9806c4677b","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":72,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"81bb4087-ff6d-44aa-a731-5d4b5fdf510e","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":72,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"44d3aa6d-4067-4841-89bc-ef9f9757cfcb","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":72,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"117fd876-088b-40e7-8cea-9c99662c6e9f","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":72,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"54da7980-253d-47b4-bcb5-95b4300ba918","block_type":"box","text":"affected by a variety of factors.","page_number":72,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"e61d3c6f-48ce-4c80-b2ae-92ff072031f6","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":72,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"2fddef6c-bae4-4057-a9c6-22cef53bda29","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":72,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"4350b87a-8294-4fb3-9d39-8055095f8408","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":72,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"89c93374-ff51-4463-8d5c-7e9cb310d89c","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":72,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"1b31bc15-e765-4bf4-924c-083d934e9dc1","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":72,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"8bd2a3b9-2d7c-4346-99aa-4d5868dea476","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":72,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"d06472f0-df3d-439b-84b5-4c24345b67c0","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":72,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"ccb29230-6ed1-47b7-a721-392541f27894","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":72,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"d98bb89f-bda0-4e7e-a748-0f509251d1ba","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":72,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"8abe7c0b-5649-43ca-9ec4-25a7b0c90f7b","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":72,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"c8320652-c082-40db-acd0-e654d5a6829a","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":72,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"e1dbc314-19a5-4c93-9e65-5c7587b2754f","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":72,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"730a872d-1505-44bf-9580-5ebdcd917cf1","block_type":"box","text":"nations.","page_number":72,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"78b43d41-81d4-4448-8fed-72692936bc91","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":72,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"5da95495-db2e-4f23-8b05-f39ff1d01b3a","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":72,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"c3b04881-741e-4502-a3a6-6888ebe7fadd","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":72,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"2af4d0e7-6adb-436c-bd99-538c0cb9f9ff","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":72,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"3575b2ec-f76f-4673-93a4-2f595b6ed196","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":72,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"bbcbfd34-8e4b-4c25-a733-85066d424b0c","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":72,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"3ed7f85b-2b29-494f-856c-f81a87d9df59","block_type":"box","text":"market Asia-Pacific companies.","page_number":72,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"c25eb46f-9575-48ce-9409-abc820f9874c","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":72,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"fb0b1263-06ee-41a6-a99b-3cb5895e78ec","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":72,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"dccf6902-1907-4492-bf5d-2ebb6dbcf0e7","block_type":"box","text":"services for such securities outside such countries.","page_number":72,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"3ec652ce-2f75-4046-bfec-8b2414743234","block_type":"box","text":"II-36","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d142fb35-1531-4f07-9ef5-cbb687e9b505","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97ccedfb-a2b0-40ae-a693-f9c643608c2a","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":73,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"b088005d-a2cd-4ef8-b661-fa71b9bbd58a","block_type":"box","text":"to commercial banks and foreign governments.","page_number":73,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"1e513515-ac49-4ff4-886d-b2faf04783a5","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":73,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"8fdec38e-ad3c-40b8-9af2-9bed7b4fa5b0","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":73,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"13e66559-5b2a-4395-b490-c7dbc86673ba","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":73,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"12418666-52cb-43a1-96df-74a2d77ca044","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":73,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"56e384e3-bccc-4727-9615-d29e1c1c8d93","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":73,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"2b701e07-0deb-4018-abce-7eac7b486357","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":73,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"ad679902-7fef-4bd6-93af-2844b3d57f78","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":73,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"099f8d97-1014-4296-b582-a45d47748375","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":73,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"5dfa058b-ccac-4ff1-b8d5-383ea9dfca3f","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":73,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"d512de40-8001-4298-8fd1-5945a0872826","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":73,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"244d7a8f-4175-4499-a48e-e91c5945026a","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":73,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"677292ce-a0a7-475c-ac6f-99de14b2e234","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":73,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"18f7f78d-6d7c-4073-98bd-c540abf62941","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":73,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"d2d3452b-6bc5-4b68-b1e7-a5e1c2799ab5","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":73,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"3938fbce-0e1d-4b95-a14c-4fd5b9e7f3e9","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":73,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"51de914f-ef6f-4583-a6f8-8ea0f3eceed9","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":73,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"5e22ab5b-4728-4a94-8f4e-84915fb046a3","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":73,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"07dfb0eb-fcaa-4cb2-b0ab-aa5c506a54f4","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":73,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"a205f798-1f2b-46d8-a878-e5c793ff2782","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":73,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"f78ff819-9707-4bf7-9997-f7e468934572","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":73,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"844cd008-5162-41c2-b4fe-0654747a64d1","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":73,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"cd56af15-51b9-41d2-bb5b-3caae48f5bf6","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":73,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"bcd81504-2e83-4187-a761-9c25e4d34859","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":73,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"2d562fea-42a6-4ad4-9fd8-b4d666b67868","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":73,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"c4721a23-c8bd-48aa-b115-5a0828766cf2","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":73,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"f3241342-a36b-42c5-9a2d-affa85d7d0a5","block_type":"box","text":"investment at that time.","page_number":73,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"d87857ed-5f41-4d35-a3db-e1b2bd6e7121","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":73,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"d0133892-275d-4234-9ab7-d1d16ec1fc51","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":73,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"7b6a4913-f7ee-4088-b7be-b883bfbc7a19","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":73,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"09ba5ff1-eee5-4a24-a0a4-730dc8f7a6a2","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":73,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"047767bb-1a7e-4a97-a8de-1d0680ab1404","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":73,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"f3c98795-b2f4-4c51-a01e-e17a90730b38","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":73,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"96578bf3-5870-4ea2-b02d-4fcb4d956838","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":73,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"f90280fe-506a-4b6b-8f9f-536cdf5ad4e9","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":73,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"3ddddbe9-4cd9-458f-b12c-76137f2f19fc","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":73,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"e876d805-0d12-405f-a748-67f31c05eb0b","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":73,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"9e7b998f-1d84-4707-8a03-27c420481b6b","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":73,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"5a5fc850-68b9-4a32-bb23-480e0e696cb4","block_type":"box","text":"government).","page_number":73,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"a3f1b250-1eb4-44ec-840a-3217e266c106","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":73,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"ab9a05f3-9736-4410-85e2-56648be4ccd6","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":73,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"2999e297-08bb-4a20-b6bb-99c7cf308663","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":73,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"b98dc484-3b11-45b9-bf2e-1f72016f0e31","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":73,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"ea8ddb05-d93e-4980-a586-8766cc655d1c","block_type":"box","text":"foreign banks and other financial institutions.","page_number":73,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"81429bf0-7ec4-4a8f-a5e9-6c6468247e84","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":73,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"34c90dc1-a075-4f02-b109-7129331ef296","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":73,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"41f5e71c-1c17-49cb-a372-7f5f507d6f3a","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":73,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"5fd23863-f612-471f-9b7e-184b6329622c","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":73,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"ca944711-3a6c-4913-8506-a29bdddff32d","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":73,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"01cabca6-10a1-4f22-91fd-5a1b5facbe3e","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":73,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"ca64d4d7-d800-4336-86a2-b60880046398","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":73,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"c7ad680e-7997-4029-8ee7-34d8f80d1860","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":73,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"d1f8572b-3fe0-4b64-8b1c-60bbc044537a","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":73,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"4385cb5f-983c-4af7-aebf-6dd5ebf1f7f3","block_type":"box","text":"II-37","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"49667d69-5708-4617-82da-c5d54d1d1ab7","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c3d654ed-38eb-41f0-a187-d5b638e16f5e","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":74,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"2a9139a0-b36a-4a7b-bfb3-2c9517f5f117","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":74,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"261cecc5-019d-4b43-b0a8-0a1b80335780","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":74,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"cfb22952-cee5-40b5-b6f5-8fd5ba571a2f","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":74,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"f2b03ec1-d9ec-4bab-94ac-25411d258fcc","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":74,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"76883081-e057-4924-a170-4a8b9d7939fc","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":74,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"4eea416a-1e92-44c0-afea-fa537520b237","block_type":"box","text":"foreign securities.","page_number":74,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"95c3dc52-62b4-41a3-88e5-6e1046f19211","block_type":"box","text":"Risks of Investments in Russia.","page_number":74,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"a097d641-fbcd-49b6-b098-fa7b68659c6c","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":74,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"bbba60e5-1a10-4224-8fb1-c4c004f7b500","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":74,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"0af85bdb-9deb-4da7-b92b-7ca9331d4faa","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":74,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"0a4474d5-fd54-4db7-8a99-452e2c5e1b41","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":74,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"1840b4da-30cc-4483-a024-3e12a9810512","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":74,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"c53b472d-fefd-4827-ac67-65974130e8ee","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":74,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"43b7a874-ac80-4079-8005-07973ba4b90d","block_type":"box","text":"developed markets.","page_number":74,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"83c89620-2910-4d23-99a6-6e303e210ea2","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":74,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"fd8adfe1-a494-4128-a4b6-5abdb8634111","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":74,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"bf783516-3401-4f13-98e6-d5a948a72063","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":74,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"0015da25-bf3c-483b-b470-9219d0d3ddc1","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":74,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"623c4a3e-b878-45bd-83e4-a23bcb41e2b0","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":74,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"35f29bd1-9eff-41ff-8043-9c70630cb587","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":74,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"5022a264-e3cd-424c-a76d-6477437ae8ca","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":74,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"88690365-83c0-4df2-bdf3-5f299c05b6ec","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":74,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"bc132583-f3ae-466e-9978-97d96f06957b","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":74,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"cceb6daf-8c68-4dfc-9dcc-9aef0f899973","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":74,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"bb7095a8-43ee-4367-a647-e32441b745f3","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":74,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"e0b40c32-1aba-4b15-a827-f4c66b85df64","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":74,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"32be0551-946e-4b29-b9c3-898589a2465a","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":74,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"3fdb9531-515f-43ef-837d-9246f1d8584d","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":74,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"60c212a3-067f-439c-a72b-2ded6db31e37","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":74,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"8dcf4762-d5fa-4447-80a9-9887c4235e9a","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":74,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"dd64be83-abb2-40a3-bd3d-f8dd40b50c77","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":74,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"7bdbdf3f-f2cb-4034-a518-c02456d1fb6f","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":74,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"14874ea0-4acc-46dc-9728-a59c0331e1d1","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":74,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"7bd569bb-f4bb-48d1-b4a1-7619f39b3745","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":74,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"418e2e95-eced-4336-b314-5f3881eb92de","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":74,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"e52e60a7-cc92-4536-8c84-6337ab63dfac","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":74,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"584c8f76-c6e1-4454-9d87-735191d1bad1","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":74,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"f7e19a9b-66ff-45e0-8f0e-fb7c018cdedb","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":74,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"8e544b4a-791d-4e2d-81f0-a56f40f0a514","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":74,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"4ba32ec6-047e-48e1-a8f1-c22e8881a1e5","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":74,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"25c694e4-1447-44f6-aa09-3d3106d8cfe6","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":74,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"d8be6e52-14cf-4fa0-8241-4fc3847992f7","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":74,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"37fbd95c-2d05-4ef1-8d4e-56ffd5ddb36a","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":74,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"33a801ed-df8f-48a3-95ae-24f99804ee87","block_type":"box","text":"sectors globally.","page_number":74,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"4547862a-320b-4c1e-b2ac-bbe01be92905","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":74,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"09cf20fa-cebd-4e1a-947a-9ce56e65ed05","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":74,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"3775b6ac-a344-459a-83b1-93a424659f88","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":74,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"aed7ed3f-6e17-4b5b-8745-dd7c06945565","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":74,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"2351fc33-8672-4acb-b6a0-2ff09ee5e12d","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":74,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"c8afa8ca-7af5-41ac-ab87-854f97e5ad07","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":74,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"119e79ab-ea6f-4ba7-8c04-2cd48e2076d2","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":74,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"510bcddc-dbad-4e25-9b4d-b6ffc112941a","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":74,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"241c2d5e-b802-45bc-802f-36175864cab8","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":74,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"0860e62a-def9-4e26-83e4-aee00dd911de","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":74,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"1abc115c-50e0-47c3-99fc-8286ed759124","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":74,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"27d629be-a975-4125-a1e4-028af4b9f628","block_type":"box","text":"II-38","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0aad70f5-7f7f-4db1-acb4-185b90711aeb","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d7dbe8ca-ab0f-4711-9b41-846dbfc28e10","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":75,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"de6104be-5039-473d-89c9-8f465f367919","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":75,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"87f881ec-48a2-408a-99dd-35b4c872d744","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":75,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"fafe0cd8-b7aa-4681-8861-82d05985c7e1","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":75,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"a01a6395-330e-4318-9487-eca3c82ad19d","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":75,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"21dba0d5-6422-4b6c-b4ee-5204c8af61e1","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":75,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"e17fd485-a9c7-400a-8b0b-50e72c6f245b","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":75,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"bc3f2f8b-cd98-4441-aea2-c95de6ecc506","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":75,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"aee39242-c4e3-42e4-8934-3b4d0946d5a5","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":75,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"5c25674c-1fe2-4e9b-a368-0897fdb2b0d7","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":75,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"d15176e0-d497-45c1-a2fa-d873890f4914","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":75,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"bfbe8d6a-9b6c-4ef1-9c7f-abde188a915a","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":75,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"2c742b12-3223-473b-bdc7-a0c5ca5d4523","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":75,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"a1e40867-189a-46ec-83d0-73b768fc5143","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":75,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"f49606b5-3d8d-4114-bcdb-d871cf1ed0da","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":75,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"84533cfc-283b-4f68-871c-c5f021af8356","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":75,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"ed810498-3598-4a7e-b7f5-b600e20d16a5","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":75,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"9a5580c2-27a8-413a-ae9d-387f6f1a46e2","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":75,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"e817873d-e091-4f8c-bdba-e982cc3b4848","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":75,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"48f435bc-7b01-4131-9f7a-0a9b628fd95f","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":75,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"bd46d990-b4be-4316-aa78-99a3cab7f1de","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":75,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ed734b54-abde-4713-ba2e-b0f141955d09","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":75,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"1909fc97-3df9-4947-a42d-f0a3d531428c","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":75,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"9dc1f82c-da96-4125-9062-4117513b65f3","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":75,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"63f9d15d-def6-46de-8ccf-e9d48f722e75","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":75,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"143960e5-719f-4349-93b5-6bf1181f13b7","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":75,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"c6cb3521-207f-40f3-9a3c-0c3c75df7c02","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":75,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"a9a99fd7-4a2d-415e-a0eb-2b809b2a947c","block_type":"box","text":"impacted.","page_number":75,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"f43d5ea1-a5e0-4ca7-b57d-67dc430dd188","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":75,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"684ab3d3-1b5b-47b7-8f45-d8e1c64ed781","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":75,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"fde433a6-605b-4c13-960b-a16ba8043c5e","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":75,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"cc92eb24-6baa-4b46-b5a0-c25a029c4939","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":75,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"27192b3f-d8cf-4645-9801-ea547da3c15f","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":75,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"2042fab5-44e2-499b-9f6e-66f4acc599f5","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":75,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"1fdd9b1f-da16-48c5-aca4-af94e759d7f2","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":75,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"94773ddf-cd16-40a6-abf7-16f81803840d","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":75,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"21a9ffea-3218-4542-ae26-4f9471e0771e","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":75,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"e970dccf-4d33-431f-86de-abacef12fddb","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":75,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"9dc65eaa-8a69-4d76-8fa0-5efdf03c23ce","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":75,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"35c42603-7f2f-4c70-bbfe-9bb9bef83e4a","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":75,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"b5d249e1-06fb-4148-8e67-3cafa658f58b","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":75,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"16347f57-f8ba-4d29-aaf9-60c9a3e68769","block_type":"box","text":"economy.","page_number":75,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"2f7e73e9-27d1-4eff-b4f6-91c35e1a9546","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":75,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"d5ce9986-a8a3-4ab4-a949-a6206f3236d6","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":75,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"7f7c483b-bab4-4cfa-9ef5-99c26bda7c81","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":75,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"d0215d6b-e09d-4af9-9c6d-68c709c9545f","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":75,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"f3dccca6-0f1b-4296-ae77-81c97a64cc70","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":75,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"dbe472e9-58a2-4149-bb6d-ac338ec4c20f","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":75,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"90d71948-d20f-4a00-b827-e4288ab23f0f","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":75,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"a3e1509a-761d-438d-94c3-d7015fdd1a0a","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":75,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"8ba4a877-8ff9-4296-9ea0-9f7434a07639","block_type":"box","text":"typically the case for investment managers.","page_number":75,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"4f61876f-7324-4405-bf5d-fe6d1f4e3bfb","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":75,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"c65b2628-b288-46bf-afa6-49e7aeb9d172","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":75,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"3eb44358-64db-419b-bd31-d710ce54ab37","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":75,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"4857725f-1ced-4261-90d2-f25a9283b510","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":75,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"c0fc3edf-6861-449d-a4de-b6b0e21409a6","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":75,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"fe3ab311-8875-4b29-b718-e55785dca820","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":75,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"05fca8f8-e8ff-4381-97b9-e477a983a59e","block_type":"box","text":"II-39","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"adc01c85-01ed-4cd3-bdf1-a23c670486e5","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32471a17-9888-45ea-af1f-da653f025a90","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":76,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"cd5911e8-0d5a-4164-9baf-7c6a7964c6f7","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":76,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"407c4521-b174-4bc7-b576-1770ed178549","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":76,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"f5558a43-29ea-4a0f-b886-eb7d58d76e7e","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":76,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"94c02bea-0b7b-408b-af79-62ccc5d4ace1","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":76,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"f3722080-aad2-4628-a74a-ea114b692cbf","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":76,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"d84f2d07-2fbb-462a-96fb-81bd037911b0","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":76,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"ff82c880-b12c-4001-8bec-a2a70ce0ee13","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":76,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"e95f1d58-1147-4ac9-8dc9-2bb62c861ec5","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":76,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"5c0185f0-fb4b-4a95-bba6-0bf0af1be929","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":76,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"3eafff9a-fb97-44ea-bd7a-feb8c525bc79","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":76,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"eae17a37-442a-45b3-94f3-f8f65b94adfa","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":76,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"f76d2944-40ee-479b-ac94-fdbd00f23290","block_type":"box","text":"will be indirectly subject to those risks.","page_number":76,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"b515e158-868e-44fd-ae86-6c560dc4f433","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":76,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"3759e617-9ccd-47cb-9219-597554679603","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":76,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"898c7e01-0fef-4169-804c-f4a5d731d25c","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":76,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"1023f696-6bc7-4e13-9ac4-fd1662cad0e9","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":76,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"ff77188f-d6d3-40de-82e2-e5f7d5c7bb26","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":76,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"43010bf9-9e01-4061-bca0-e69366cb5c76","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":76,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"d8f91773-f247-4db4-9d43-a126594a90ca","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":76,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"7006c496-2359-48d7-9a82-cdd84d830083","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":76,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"a5fc65be-0bf6-442f-a09f-9bc35f25d1ea","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":76,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"68032478-1d11-4194-a612-8a7e5bba9f11","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":76,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"7d67dac5-d762-4ea1-a410-57dcaa00df26","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":76,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"74632581-8067-4d76-9900-5e559b32c23e","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":76,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"cf95c920-a881-43ea-9167-e60a0306455d","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":76,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"f0b6711a-516f-4a53-bcb3-18de235a47ad","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":76,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"a8a52eb8-b888-4dbb-80ba-62850e4df2ff","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":76,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"47034618-1e01-4c3e-9b52-ecb07007175d","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":76,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"9879586c-24d1-4065-aa3e-f02fdd8eee1a","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":76,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"e9a5248c-046e-4d4a-a9c2-fbe78a295a87","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":76,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"2dab93a8-e5ba-44e8-8341-e6d27f045dff","block_type":"box","text":"impact on a Fund’s investments.","page_number":76,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"9a94a982-81f2-4f56-86af-c7c480e01460","block_type":"box","text":"Brady Bonds.","page_number":76,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"75208975-698c-4a5c-9b9d-2fc6c05482ed","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":76,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"0b60daa9-a0a0-4ab8-8445-002c03659739","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":76,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"fadb6e15-4cde-47aa-b9ff-98a6ba72e48d","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":76,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"d6a7170a-6158-40d2-94a7-8079baaeff6b","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":76,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"88a2d7fb-4b7e-442d-b071-e2f328149e6c","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":76,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"99e04f7c-46e2-4dfa-9356-4ce870b36ce0","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":76,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"80be45d9-fcd1-4828-97aa-0ea4096908ac","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":76,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"cde0f518-9d25-45e1-9aca-ddafae77513f","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":76,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"ca1bffe5-df90-40d8-94b9-29f079e9aa15","block_type":"box","text":"Venezuela.","page_number":76,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"6e1d485b-c417-46d7-b2f6-bc2cf9a6e7c3","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":76,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"c70b12da-e561-4b8b-b704-6645de83db7e","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":76,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"f6a9b45a-5761-4416-9698-4e5732b79b7b","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":76,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"3d84ff94-b5f9-45fb-a93f-d701ded6c9b3","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":76,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"6c40808f-4189-4a0c-9aac-8ac99d982f41","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":76,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"36756b0c-5dd6-4a20-bccf-0e3d727f0c0b","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":76,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"7bf89a4b-538c-4255-8d73-3c6f3133021e","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":76,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"4e280636-dbf9-43d9-9df2-a192dae2c79f","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":76,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"35bebc2e-4139-4d9b-85a3-a7101a4b3f71","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":76,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"804e4dd0-057b-4317-8629-97a8bd6f088c","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":76,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"69760c9c-873d-491b-834c-83b589d9ace6","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":76,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"a030ac06-cb92-444f-9cc1-a1449aaafd74","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":76,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"46969aef-e37c-4e50-9247-72180c69ea03","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":76,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"ffeb3216-9a49-4daf-a17c-f5322c2fde1f","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":76,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"b461f46d-9a8e-4ce5-8bc8-d420a59bb6ac","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":76,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"d101b90c-2372-4305-98e3-d0be4f44bc74","block_type":"box","text":"II-40","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"279e5f99-9e5e-4cb2-9576-101ef73ca19b","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af0ec43a-37bf-4553-8a00-870a67c3e6ce","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":77,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"3898803f-6861-4c4d-8f4f-90898aefb675","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":77,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"bfd61c8a-cbe5-4f6d-b0d2-aa617f8b3214","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":77,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"f029c739-ac09-437c-b5bb-c2a2a7df2203","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":77,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"895f66a0-162e-43a6-a9ad-a6235c2dfad9","block_type":"box","text":"China Investments Risk.","page_number":77,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"c3d4660d-9303-459b-853c-5cb94601515e","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":77,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"519c7566-394e-4d16-b544-1cb52785c1a3","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":77,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"37e65afd-f0cd-43b3-8a80-ae576e5547a1","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":77,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"3b8a89e8-8856-4fa0-92e2-d68c93757a47","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":77,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"e8709a22-71f6-4ae0-9c52-1fd04c79432c","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":77,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"6945804c-22ea-40e4-ae12-7a4e4517a4e0","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":77,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"fe272710-c7fc-4b6f-bb6f-e284c9c4e913","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":77,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"b8aeae24-7b51-466a-9f6d-d444bbeca3ea","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":77,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"004e049b-7e83-4dfd-8365-f5bc2806a74e","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":77,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"8df61f86-1126-48a6-ac74-7e37ae5954f1","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":77,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"cbb470f3-a364-4754-ad86-1f65d62bb553","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":77,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"c81fea1e-4f8a-4628-bf99-0181aff17ca7","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":77,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"4dbc3969-3bef-4bf8-985a-30d42c3d59ef","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":77,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"7d03d48d-7703-4a6a-90d9-d00ebe2e3bf1","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":77,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"b4b15d8c-8911-4d33-9c95-37ebdfde6596","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":77,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"55fe18b9-4e17-44cd-a50e-c6bbf2530f51","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":77,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"4f1fdd8c-16f5-45b0-a30a-3500b09dcfb8","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":77,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"f4cc10ff-d503-451a-8d92-d5adcb86612a","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":77,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"7f718ff3-ae31-4d3c-8ac8-cc3ada8ff914","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":77,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"4ed0639a-f635-4c27-b801-55148ba34f2d","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":77,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"ed810f4c-6aff-4ea0-ace6-fd35bd495935","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":77,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"7e939664-f526-4d20-8349-a47a847de29e","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":77,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"5d029a96-99a8-4926-bc07-426ff3de0b9b","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":77,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"7d98b6c4-ab92-4c14-9c78-b3198e5d0388","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":77,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"fe2cb0f8-73c8-4511-aa49-d796d0901435","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":77,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"d625e25f-2f43-4240-9f53-48d1e196fbba","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":77,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"e89675ea-14e6-434d-b5f7-2a55c0b9ea3c","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":77,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"963a4272-4874-4b8d-9c78-88f6ee3db9f5","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":77,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"1548b4f1-e35c-4d8c-8577-0e3bb9706e66","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":77,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"6b181ef9-6365-4df3-95f3-6b2cfc605c79","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":77,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"314d2cf6-3226-4188-9953-ce84f82039d4","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":77,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"96902283-45a4-442b-9369-9f4cfbcb1e5f","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":77,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"c6286095-5c8b-4906-9621-a8bca7cdc033","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":77,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"4c0aadfe-f0c9-443f-a526-d5d4f599f2fa","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":77,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"be4811b8-0864-42a8-8c88-14bbb29107e6","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":77,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"366d6839-fd53-4395-9b75-7855256f2d31","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":77,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"caa29369-47cc-404f-9700-043a14ecaf3d","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":77,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"ccd9e7bb-9107-4dbf-9ab8-1fee878c099a","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":77,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"316fd151-fb10-4107-9b32-e05eda70700a","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":77,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"8f6cef36-1dea-4eba-b554-e7f4e5b2533b","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":77,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"ba08c7b2-5ed1-4cbb-8b39-361c1396e05f","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":77,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"3eaf265a-c8e2-4342-9cff-bd8b6ffea611","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":77,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"0c4ef94d-2883-4f0b-9e53-7872d06031b4","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":77,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"e1462157-752d-4323-83b6-6ca1ded7a93a","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":77,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"123913a9-d4c8-48b1-b5bc-b9e80745dbef","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":77,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"c74ac69b-e996-4cf0-858e-880d4aaa40bf","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":77,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"35665cfc-2b59-4f76-bb7e-d0e8526ece16","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":77,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"af77ee6b-c51b-434d-88eb-204b697bb2c1","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":77,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"2e22cd8a-7ef7-4676-8fe6-300559325172","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":77,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"a39e8ef7-13d4-465b-88c9-28a769ef68b0","block_type":"box","text":"sub-custodian.","page_number":77,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"56e9cd45-ce22-4a33-926f-dd357a94595b","block_type":"box","text":"II-41","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"035bb176-b78f-4b9f-9315-57ca1d4004e2","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce1a17de-9271-47a1-9a10-b6a2484df56d","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":78,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"0c24c70b-5de5-4651-a073-ca5d907e9cd4","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":78,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"8202a10f-e9c9-4542-8e48-2a9f1aea0274","block_type":"box","text":"on investor protection considerations.","page_number":78,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"22a4ad36-ff62-4322-a118-5ed4979a4d48","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":78,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"8061a45c-1777-4141-8fb5-1c5f4b8f3aa9","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":78,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"9394460f-d50a-48d2-830f-045b181fcaa7","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":78,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"ef5f6792-c10f-425c-8880-613f09677111","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":78,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"b2b0f903-976e-4298-8228-b449d30a6978","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":78,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"d7f9c5f6-0daf-4532-a4a5-cf51ec075877","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":78,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"b100c688-f9a9-43f6-9451-e8595a9d8cfa","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":78,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"cf7a9ca8-9ead-4fbc-957b-b727d35f4dd1","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":78,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"6f65cb7e-53da-4fca-a08e-cf113d9d9bee","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":78,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"5fbbefc2-2fe6-49fd-94d0-7f24908dd916","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":78,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"7c094270-cad6-403c-af24-beb3facf7781","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":78,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"f687db62-a24e-4f8d-9238-44d0d89a0ee0","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":78,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"38b2d89d-b8bb-46b5-845b-40221e716344","block_type":"box","text":"accounting firm.","page_number":78,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"16c2bc61-099d-4647-b925-bd43de4e810e","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":78,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"75ad9e1c-f794-4363-bc26-b70619ef1b11","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":78,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"1f7a92c9-4f34-48dd-91b3-429880571a53","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":78,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"46c4a4ca-6e90-45c8-85de-fabc5fde1532","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":78,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"802b4fb2-a5b7-4463-a65c-cccbb93fc74c","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":78,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"b2e51063-5794-4ecb-8062-fd4244f0f7b9","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":78,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"ecdb5c73-ab3d-4f42-94b9-041c96e7a10c","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":78,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"c96180ee-11de-49b3-8a5d-d58152532e2c","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":78,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"4a32d47f-a2eb-49dd-89a9-2fcc5846a106","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":78,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"aaee1273-b5be-4a44-8861-a4dbf9fdf6ca","block_type":"box","text":"RMB (“CNH”).","page_number":78,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"8d2d17c5-bb7f-4f04-9e4b-88c38d70c2b3","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":78,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"8a5cf6e9-60ff-4649-a2f0-1a22799d3bae","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":78,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"3ed23e53-9297-458f-bc7e-3ea17ad6e19c","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":78,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"9e1a6b06-2dcc-4737-a44a-d95c1978802e","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":78,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"113b7fb2-a618-4ce4-ae8c-1869a54e9d4f","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":78,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"520ce628-c8e2-4a39-b520-f507b043701d","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":78,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"bc7cc89a-a048-4e41-8014-ec7176cb7bda","block_type":"box","text":"represent equity ownership in the operating company.","page_number":78,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"b80c6732-6852-4cf2-a6cc-80207f6f313d","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":78,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"2a723d87-9bc7-4a7c-800d-de1102b66c4c","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":78,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"063c8c19-a817-47f5-bfeb-3c3bfe862219","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":78,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"26390619-f626-495c-916e-af3c862433d6","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":78,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"abef96c0-66c8-4ace-a68b-ad4f6ae8a746","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":78,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"49754bd1-7942-47bf-8314-510ffbc7ff64","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":78,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"a2854a8a-77f8-44c9-ba5d-3bac2c483cad","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":78,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"b388ec12-c4c5-40a7-b8e0-70b459f330a3","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":78,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"3ce2c891-66c8-46b9-af3d-946e9924f895","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":78,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"6982c991-7b77-4f7d-a15c-062806f697b7","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":78,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"f5c7e20b-a39d-46fa-81ea-00d7b19c8ecb","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":78,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"45321585-aadd-4ce8-a4ab-2fd92ee84ab4","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":78,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"2663bd10-b867-463b-b042-ee3c62c351f8","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":78,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"f2a8f6a2-9ee7-4d7e-851d-092864f043b4","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":78,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"ee821eae-079a-4c6a-ba27-74ea17fa9933","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":78,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"87975a89-48b0-4446-afc4-20f6953e9d89","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":78,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"ebc3b5db-baf5-4949-9fb0-30e05ed93f95","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":78,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"bba2de29-ca87-4c00-97c3-10dcab3a7fc9","block_type":"box","text":"losses to a Fund.","page_number":78,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"54342ed4-3adc-4141-bde1-8ffa3fb640ef","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":78,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"f73cbce0-28fa-4fe3-826a-d4249e34d8df","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":78,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"b4af563d-b8b2-429a-a41f-0c081e958303","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":78,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"d74b2033-b2b7-4528-a68b-78363f70df36","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":78,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"91699a89-a5ad-4f47-b2b5-199bbeb6afde","block_type":"box","text":"II-42","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fac57d02-16de-4578-9d92-17f8b30045f0","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c89100a8-f2cc-4a59-adb4-6f7c80a2879e","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":79,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"e97fe3e7-640b-4d19-bf01-de9d82c9dea8","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":79,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"7c16bd84-cfdb-4de6-b97d-5cf6bada430c","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":79,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"e6f40e39-3f92-4c3e-a665-3d8485239a2b","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":79,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"f3c4504a-036d-4346-9e24-13dd7264667f","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":79,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"6c9a28bd-b216-48f4-a3e7-bd4d96a7855d","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":79,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"3e9fb097-cfab-4ccd-a391-43aaf37a75b4","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":79,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"c74339a7-c245-4bd4-9ae8-496aad94ce2c","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":79,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"d25221cd-c7cb-498c-9a7e-017804f7bd4e","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":79,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"f95a261b-7d4b-4246-a405-70bd2321eab1","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":79,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"cdccb54f-1c48-4479-b29a-8765c9f63a67","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":79,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"e5298ca2-2af5-493a-82c6-87760ab0a123","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":79,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"73655ab6-98a8-4050-8c1a-4ecd9242410b","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":79,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"fa13cb53-0f1f-431e-8957-7de63dcb7a2b","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":79,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"fdbc70e5-ceb2-4789-9c96-cd8fea720547","block_type":"box","text":"such companies.","page_number":79,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"f31c9a72-ae8f-4af3-a5e4-56f20a0f27ca","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":79,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"faed2499-aeef-46f5-bd52-3c4391afa844","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":79,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"2c23b80c-c999-49cb-8af3-150576ddee1a","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":79,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"0d026d40-826b-4518-beed-ed568f3f3028","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":79,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"1c5db542-3dfa-48cb-867e-a002193099cb","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":79,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"a3f53ca1-8700-4a45-b3ac-214acf95f49b","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":79,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"780a21f2-58ac-4594-978c-3918da1bfd1d","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":79,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"31faafb0-9e42-4673-8666-bce70ae73779","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":79,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"efced2e5-36fd-4bd2-80eb-27d802f9c57c","block_type":"box","text":"standards.","page_number":79,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"c9957f26-b480-4de4-aee8-0b07d617369a","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":79,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"15ece1bd-d00b-481f-8f19-6012d368447a","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":79,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"d7518494-3849-42c5-9f64-a32531fc64a2","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":79,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"26da1459-d47f-43ad-b5d2-0fdbfd674b7b","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":79,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"c7e2ebef-278b-4f6e-b7d3-6b3421ab7946","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":79,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"1877bdb4-0141-4f32-bd86-09d88597257b","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":79,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"f0ff6bc3-0cf0-47ff-8220-2fc1a968f7e9","block_type":"box","text":"General","page_number":79,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"2eff8004-d2bc-4e5e-ae16-346063f8d838","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":79,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"3418f12a-3756-4b4d-892c-6fb0c64179d9","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":79,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"199b3bd1-69cd-4433-9a9c-7c5a3a3fbeb1","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":79,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"9d77a88b-0430-479f-901d-b8784f71abce","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":79,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"d7f9d6ad-d06f-453d-97a4-e207a508063c","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":79,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"15fc8b37-3028-4b7d-8dde-0562e496439e","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":79,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"1b49f2e5-724a-44fc-a118-adb88c5124fd","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":79,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"630232de-1c0b-4b82-8605-66e229b82b7d","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":79,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"cb16fb21-6411-476c-9aa6-6d2437cb2a41","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":79,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"6a87d847-f81e-4b26-afb8-6b930f9a8151","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":79,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"9844f813-5580-4d6c-b984-23242f1e51a1","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":79,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"19079b5f-7bfa-426c-9261-0ba60849d7ff","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":79,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"c4955661-be56-47e0-b466-d2161575eb87","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":79,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"72d5ff99-dacf-49f5-903e-ef3f2e6f1ec4","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":79,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"a8c5bcc3-9c88-4657-bb67-f8f330c43123","block_type":"box","text":"company established by SEHK.","page_number":79,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"db61dfd9-8f9c-4362-9e03-2ae70c3c60dd","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":79,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"5e5fa272-bc40-4d9e-80e1-74e7e67abf7a","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":79,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"96de63ff-2112-4547-baf9-b90cd76b7b62","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":79,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"bad7f97e-28fa-404a-9dc0-a4d0ad968cf5","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":79,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"e4dedc21-eff1-4e40-ac53-1b56effb6225","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":79,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"47c183fa-0ef4-47a1-a41d-02dbed24d7bb","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":79,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"16e3ee04-1289-4a1d-9c45-f655eb196e61","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":79,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"09e457df-92de-4b7c-a6d8-65d6c187c613","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":79,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"58ce993b-2588-4aeb-8876-5883936d9fe7","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":79,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"224fdab9-e402-4cf8-8579-7297ef5fd88a","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":79,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"b12c42a8-ff1a-43e9-b338-1b653c412758","block_type":"box","text":"II-43","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"732cfb03-3153-4329-a673-a96c44eeead2","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"29eb38db-36fe-49dc-90d6-0187f0c5bdd8","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":80,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"d08ac03b-bee1-493d-a5cc-5796d5664531","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":80,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"1f0c8b29-0917-4299-bac9-854ade216040","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":80,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"0e515993-f443-40e4-be6f-f114945cf777","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":80,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"7e63c4b0-3114-424e-94a0-61d9bb8b6b34","block_type":"box","text":"i.e.","page_number":80,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"8fa8842d-9c56-4eab-9791-3cb2e4ff3bc4","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":80,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"8c19c2df-c86a-498a-99a9-dd6809ca4074","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":80,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"93ce245f-21e9-45c9-b3c4-310975f4c86b","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":80,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"f01ab0f0-d8fd-493e-9955-bbf920ee38d6","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":80,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"6cd64c6a-a165-43c2-8b5f-2e9427a5894d","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":80,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"c46db767-5106-4f36-be80-c89d0090e06d","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":80,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"713b66a6-4723-4156-af15-8a1b07147d26","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":80,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"b62b9d25-09aa-4efb-840f-a1e640f408ce","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":80,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"35acc06a-7243-4545-bb4f-cfb3a9b21bf1","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":80,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"c079709f-ecce-4097-9f26-af6fe01ea636","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":80,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"e44d88cb-b6d9-46d1-90cd-8239e8e527eb","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":80,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"d5960bb2-039e-40ee-92f0-3d78d6d94985","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":80,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"1324d8f5-42ff-4e8c-ad8c-b88a45fd6e5a","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":80,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"b1e7680b-d3a9-47f1-952a-005bb7d34e0e","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":80,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"b7b92525-335f-4023-b791-91b402fca7d6","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":80,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"878356af-a1ea-42dd-b593-7b54047b6b4f","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":80,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"841f1892-00a2-4af8-81ea-556c364093fa","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":80,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"a1479974-6ca0-4b17-a67a-07fb231a05fb","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":80,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"3c6d1af3-3c0b-41a3-ad13-5f6b637a5b0a","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":80,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"b8fb56a9-d9d3-4282-8696-ed13f75d1d88","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":80,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"389fd576-7019-4ea1-ad83-908b299b7908","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":80,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"94ba3055-e284-4023-9ef5-3e467c0e7c49","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":80,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"f9eb5e72-7429-40e7-8e72-6af3fc60090e","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":80,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"06e32f34-26eb-488f-8179-36f11ba05284","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":80,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"d576e2d7-59ce-41ed-94f4-dbd27eab0956","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":80,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"ca23c2f8-b314-4791-ae37-2404344a21c3","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":80,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"c8251534-e9da-40db-9641-057ab9171a0b","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":80,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"c38c561d-cd1f-4b27-ba4c-8de7aa88086a","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":80,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"13925e4b-152f-480f-b1d1-31116436456a","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":80,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"bc660c3f-4ae6-4474-b825-e5f2b511e746","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":80,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"67f9b93b-d1da-41c6-a228-36f5f1bf8e2e","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":80,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"7555fa9a-68f7-4f33-af74-eab116603eff","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":80,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"436ddc54-2b96-483c-9fc2-52842d6f3656","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":80,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"a3db7da7-d5e9-4915-a08e-ea9e4d60166a","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":80,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"747e70b0-d6e2-456d-8bb2-595a2685a06c","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":80,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"551c3ffb-1ce9-44e6-b3a9-317981a1e5a5","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":80,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"8d2d450e-3e95-4246-85b3-cdbf9ecf0a7b","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":80,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"44f393f0-b184-4efb-8616-2d02fd39fd5d","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":80,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"4b8d8848-adfb-4af0-ba48-e380a835c4ff","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":80,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"314540a6-a7a3-4540-a900-dfc2d70e7f95","block_type":"box","text":"PRC.","page_number":80,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"134f9c08-ac0b-482e-95df-2693d16d3cd7","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":80,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"b61989a1-3098-471c-91dc-69812fd504bb","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":80,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"06c0deb9-d30a-4ac4-910f-1a92ccefa5b2","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":80,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"6e4a3f64-c9be-484c-bc26-e7ac4596eec9","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":80,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"a17a87f8-a9c3-4656-81ff-60e7e3a4acd9","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":80,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"5ab858f8-985d-49db-8a8f-4284b8002837","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":80,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"8e3c8845-b0a1-4970-8ec3-b25cc1308a53","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":80,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"47a85e3b-24a1-425b-b700-3c93b71926f3","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":80,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"15065130-126d-442c-8787-54a54f101794","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":80,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"a3efd866-9d6e-4f0e-bf4c-648b5ad27aac","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":80,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"959f248d-0288-4f88-87bb-62633de72c1f","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":80,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"b49d8f33-b776-4ea8-ba08-c1bcd601f17e","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":80,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"2b0ce9aa-9b2c-41e8-9785-564a10a97c38","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":80,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"234b43ae-da20-4b61-a550-a232e75920aa","block_type":"box","text":"II-44","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3fac5b27-43a0-44e6-82e2-cce2289aae6c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f227d4f-0c11-48ff-be9f-ab4b33f25d82","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":81,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"561ddc7d-94e2-4a2e-a970-5585c29719aa","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":81,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"2e6f9de3-49ea-4622-a411-09ff982846ad","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":81,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"31439a77-3d5f-4205-bfda-d082058ac19b","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":81,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"2478b8d0-95fb-4518-b3cc-e9b62de106b6","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":81,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"0789acd6-a8d2-4c28-9b25-1be4d25da98e","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":81,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"843221af-64a9-4a00-ae9e-518f87bfd3d7","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":81,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"8b16850c-1498-4172-954a-050beb76d9e4","block_type":"box","text":"Suspension Risk.","page_number":81,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"d93ae987-c6d6-4c01-8806-1e196202266a","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":81,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"b78994c4-db51-417c-8d11-7b7347c7c490","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":81,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"55d129ca-dc41-415f-a970-cece2cdcd94f","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":81,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"31bd08fe-2c13-4302-beb9-caccd354041c","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":81,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"a6ded86e-879e-42e9-a61b-57882250fc24","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":81,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"904c9556-b349-498e-a044-b6278dc9bd01","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":81,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"5ef5430d-7ff2-496e-a23b-88e6c22eff0b","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":81,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"e3556f7c-e7bf-4db3-87b7-aa6dc55e46b0","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":81,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"30fca44a-44c3-40e1-b236-9b0f65f3ebdf","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":81,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"bcfc2648-6752-4f02-a25d-79c3e4602ee7","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":81,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"76c5acb2-030f-4632-a186-4e39b480e5e0","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":81,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"c66f4153-8e72-459e-8260-787841148222","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":81,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"3b62538d-4b1d-44ac-be80-72720c5b2c2c","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":81,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"52c2165f-50ee-4e2e-98d1-d63d4cbaef78","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":81,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"5c9651bb-61ac-4917-8a49-8e4db3a7c6e8","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":81,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"71a5c849-8525-45cb-8f93-cb13c37b4b77","block_type":"box","text":"A Fund may invest directly in the","page_number":81,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"d6f7978c-7eee-4024-9d44-b0d957358d0e","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":81,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"4a79746e-ca8f-4c94-8b32-4186c612f13e","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":81,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"f84ff4a8-5a66-4c13-bd6b-c3d9cc7000e9","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":81,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"e33c337a-f7ce-4af0-8996-2a413f2e9e88","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":81,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"48f864ec-08b8-4eb3-ac66-2c9e176e3301","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":81,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"7e1c2d31-6630-4d2f-9bd6-63ff0a39c638","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":81,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"005db115-be17-427d-899e-a21fdb5914f7","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":81,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"a74a31be-7100-4322-be91-09ba3d6f220a","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":81,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"c27434da-4ece-46f0-bbfb-9075148aeb5e","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":81,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"a48058bb-0a76-4f43-8ee1-0ea7dd097de8","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":81,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"aabf1411-d5e6-4c1d-9767-ddbc2c4116f0","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":81,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"c5630167-9e8d-4ebd-be89-bcfb10696462","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":81,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"27314aa0-8c33-4af9-9caa-8e5f4e1e3b68","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":81,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"ee87a743-0547-437e-b7a3-15f02e2b7f4e","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":81,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"0a0adfa8-43ad-417e-b15e-3f2d47223227","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":81,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"30775e3c-2e8b-4606-b2ba-3b8bf2215f10","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":81,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"8c75eadf-8ceb-4759-bc0e-61c6bb4e92ec","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":81,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"73b6cf99-33bc-4c8d-97ad-f9cac1cf46e8","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":81,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"f3dec225-e3e4-4f42-9cf8-e32a26f263bf","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":81,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"cfd5722a-5a37-4f7a-96b7-e25839466c4e","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":81,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"056cea08-6dce-4142-9bbd-964143e80982","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":81,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"a5378949-2ff8-4245-a106-c62c38b51205","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":81,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"833b168f-186b-459b-8c32-b38d497a7c8f","block_type":"box","text":"i.e.","page_number":81,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"66aa2742-b665-4bac-bec9-352f6df0b480","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":81,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"72c9873d-aa11-4a60-87d4-d3768966a1d9","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":81,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"ae9d685f-58b4-4213-9595-4f827984915d","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":81,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"88cfa547-be50-40f0-9304-034cef17c2a4","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":81,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"404ddb32-494a-441c-82ec-1203c7447a93","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":81,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"862b2263-9333-4203-a190-e750718c8982","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":81,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"c363733d-4c24-4b77-a62f-80bf8a4230b0","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":81,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"2b6f9099-e66d-4244-8189-0c514083d66d","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":81,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"2940eeca-1d65-466e-9e6e-353243986b7e","block_type":"box","text":"parties.","page_number":81,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"20668f00-d2a1-4488-8770-8a4102bab954","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":81,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"2ef94605-377d-4452-802c-5d263a849b57","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":81,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"f636686b-bee2-4886-811e-ec481103cf45","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":81,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"1a02e615-eff6-46c6-bf19-35e9eecbc927","block_type":"box","text":"II-45","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8c1f9e7b-dad5-4184-903a-71390b2f7733","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"348a1081-03da-47c8-8d0a-a1f90e2faa1d","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":82,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"a6c8abe0-7124-4718-9097-83d1b2abd406","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":82,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"9e47f640-0abb-4509-8c8b-b4f868b31c33","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":82,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"d825ebcb-3e09-4d25-ac37-13dd94c73e47","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":82,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"afbe26dd-e686-4436-b9cc-aeb3f0d9f665","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":82,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"4ee7bd91-8e08-4d61-9b85-76228955986d","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":82,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"c9fb7fe7-1e17-409f-bf35-3ba53e1aaae5","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":82,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"5ff7046a-6e70-42dd-a1b0-a5a16518a05e","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":82,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"58ceab53-3c25-429f-9f9d-7ea4fa2779bb","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":82,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"12a7d7a7-8d04-41c5-b80d-ca5fbd21a53f","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":82,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"60d2fd1f-38df-40b8-91c0-6e3ec39741bb","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":82,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"cd474b48-78fc-4de6-b8e3-68d949142934","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":82,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"f02bc818-ba55-4400-be11-8af2c23ad78e","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":82,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"8cbe2fcc-eae3-49b6-80b1-cc7ab41d25e8","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":82,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"4bf84e66-35dc-4a05-a23d-df1e924fc6d8","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":82,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"45d9fa7d-62fa-45e8-8224-91e8c3b30376","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":82,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"cff7433d-aa00-473f-9e09-0e71bab8d348","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":82,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"43235884-b1fe-4fbf-adb8-ad7a588faf86","block_type":"box","text":"performance.","page_number":82,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"814a7350-8a7a-4234-9972-ceda5bd0c5ac","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":82,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"420eb410-2a24-4912-906b-545540de403e","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":82,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"668baa95-2d6e-4ccf-9ceb-dd943c1495c0","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":82,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"d6bf975f-4520-4fa3-82ac-524b507a4a74","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":82,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"aa27403e-37b1-4663-898c-608cd08db820","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":82,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"be4632cd-060b-4832-b514-18940b018d85","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":82,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"47ffca23-f356-4c55-9744-c91fbd070e73","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":82,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"ee74e9d7-2474-4c53-bcf4-6b1fb092cad3","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":82,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"21ebd07b-2009-45aa-b938-37b36fb20b9e","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":82,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"15548abc-e194-465d-a333-2207b7135fef","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":82,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"47092060-540d-4396-b6f1-0bd21aba1a12","block_type":"box","text":".","page_number":82,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"42bb1a11-f22a-4183-9b42-946259ae74fa","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":82,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"558821b2-63f1-43f9-b477-61f6c958f897","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":82,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"a4a7b4f8-956f-49f1-a626-2fc01bd154a9","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":82,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"367c1705-49ba-4641-b78c-054595b2485c","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":82,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"7a90f73b-14b7-4997-961e-685c9d1eab1c","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":82,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"f504e066-04ca-4297-9472-a4271710488f","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":82,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"5841faab-284c-43d4-9fd6-73cee8972db9","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":82,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"26acf88e-9384-4c51-9a0a-2a29e991cfa8","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":82,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"1056545b-4961-4c5b-a311-41da9d5a2b2d","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":82,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"964cbf66-d74d-42a6-99ef-3bdacbb21d44","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":82,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"7a2015e3-7cf9-47ee-814f-a924d1b3da8a","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":82,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"fb39f79c-8484-468c-a8e3-4dc8788e569c","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":82,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"584d1895-c259-45a9-a54a-02cb86bc9c90","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":82,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"8e7887c4-ade4-4aa6-8ff8-704e6731a5ce","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":82,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"b685f3fb-178e-4586-8158-fe100f89da97","block_type":"box","text":"without notice.","page_number":82,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"410831b9-a4b0-4318-b5d1-4516623efa3c","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":82,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"d6b6530e-c58e-4c09-b7f9-bbf6a2b2e00b","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":82,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"aac93cb4-9377-4501-88aa-bae9d5b9c533","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":82,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"9f9ee59b-0a01-4747-9c23-c1ab77abc75c","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":82,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"a77ac0cb-c811-4ed5-adee-0344cd084a97","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":82,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"d3e6e390-ca32-4894-b6c9-28dfef8e76d6","block_type":"box","text":"December 31, 2027.","page_number":82,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"d1ba0e99-d932-4602-88e6-34da6de6a73a","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":82,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"5f8f0e0c-c9e9-4c55-a72c-1cc8e67dd19a","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":82,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"45d8cb9d-34b9-49c5-a95d-ad9287aea16c","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":82,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"24b6b97f-2ec2-43bd-ad65-588c9a38c025","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":82,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"8aedf7f0-ba6e-4409-96fd-6138bd2d3ea1","block_type":"box","text":"II-46","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9cebb0b3-4d30-4e94-b1a4-f2d6119b0b02","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"628e7884-0ddd-47e4-a3a9-9931249ba27b","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":83,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"b8a314d0-fc09-45f9-8009-893254803473","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":83,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"fb9976ea-891b-483c-945f-b6fd017fd114","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":83,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"aae71f4d-f64d-476e-a6b0-de1a3d9a4300","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":83,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"69a02b00-b88f-4e41-b38a-f552ed6fcb95","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":83,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"b3448eea-c94e-4dc0-8b9c-4511f667e81c","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":83,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"2675537f-671c-4ab8-ae2a-a9a60102ce8b","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":83,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"eaeab267-f239-4f1c-948d-ef2cddfad03b","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":83,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"7b900840-c0f3-411d-8098-6645a4a7044f","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":83,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"7f35d0fd-fd0a-4675-93c2-f4fcaf0916dd","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":83,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"8a071cc5-6edb-4b59-b8eb-2c724e110546","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":83,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"c59ca010-c311-464d-9964-a3e8d03f4d52","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":83,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"981027c1-9f5d-4174-9df6-8b3db06261dd","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":83,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"db0f00df-41ef-4486-8a1b-b46a83f89fa4","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":83,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"0ec14dc6-7c2b-4a7c-91c6-f3469ca159a7","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":83,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"39f666cd-ab11-4cc4-b6ab-39d869ee2470","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":83,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"3d486439-04e5-4a4a-9f88-ee4055548494","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":83,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"eb2f5a7e-1f90-4f52-a353-bc4dfd6d4970","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":83,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"a374f819-db6d-40b9-a020-182d46d075b5","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":83,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"5934b6da-a1fa-4b60-8199-0a6ce4854b62","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":83,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"9f0bbb7f-5150-4ec3-a269-2f7c57e4342a","block_type":"box","text":"the PRC in notifications.","page_number":83,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"539f0876-520d-430e-a17c-409d4b63b112","block_type":"box","text":"Investment in Other Investment Companies.","page_number":83,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"8d093bd3-f274-4167-8afa-4f8d7eaea742","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":83,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"88cf15fa-bb86-49de-8ae3-7f8c5353db8b","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":83,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"81dd8cde-fed8-424b-a9e8-80ed21a909eb","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":83,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"f4279141-7595-4aa8-811f-db75ba45145d","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":83,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"674f4545-b6f2-43df-a869-5a4fc1c7b4dd","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":83,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"472ce508-39c0-4881-a25e-4ab87e4011dc","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":83,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"9478dbca-5f47-457b-a24d-1bdb68b84514","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":83,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"62416ae1-76c5-4b03-95e8-2166ce85ecbe","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":83,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"db3a5b4a-67b2-4397-9fe2-4f1dbb13cbc8","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":83,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"5f80c879-5e23-4e4a-a8b0-6399fd8e6f4c","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":83,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"455a2d7f-079b-45fa-b6f0-a5d0217c7280","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":83,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"db6cc63a-9240-498f-b430-f505977656c8","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":83,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"cb77bfe0-638d-41c6-979c-f929523326d6","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":83,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"80d5e638-cdd9-45af-a2d6-2be83e4c6d90","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":83,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"fc06fc36-b60e-4077-bd6e-dccbbc30da6e","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":83,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"90ed3549-e7ae-4901-8bf9-bf00ef65f212","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":83,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"c3115f35-931c-4df5-8a62-efea95c257b9","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":83,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"1c89d495-4447-4103-837f-b242923d2951","block_type":"box","text":"subject to certain conditions.","page_number":83,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"56a26fea-652e-4b10-8427-3c4735310083","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":83,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"e8381215-d99b-42e8-8595-0640ee69fbfc","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":83,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"3e84c1c8-aec3-4a76-8f9f-25bda21e49bc","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":83,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"d3bb2fd1-186e-4c08-a310-958b9b4368cc","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":83,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"38c87c80-51d1-4a52-b8de-fa807ee777f0","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":83,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"f585114c-88f4-4b5d-8ae4-15adc499e899","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":83,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"ca24f298-6c9d-4735-bf1b-dd6aa551c8c4","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":83,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"25320e2a-ad72-43eb-bf1f-a93536879fb7","block_type":"box","text":"loss.","page_number":83,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"e9768caa-9df0-43df-a0d9-ed2a0cf40929","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":83,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"c24f72f7-0159-4a7e-8720-18446b1693f0","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":83,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"9ef04f51-7f4c-4811-9dab-a7d0afbcc022","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":83,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"aa81c89c-3716-45ed-bc2d-3d839404243b","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":83,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"2cb71aab-255c-41d6-be87-c4543c957b71","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":83,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"df5c79ae-1974-4ba3-a101-630dd2970a5c","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":83,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"8f963553-9189-413a-835c-29b87d0b9740","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":83,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"c21bc1bb-ba6b-4ad6-aa56-f7f98f1cd362","block_type":"box","text":"II-47","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f63f088f-fc25-4ae1-8c9f-de361408f0d0","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f759456c-2377-40c8-95b8-8cb1df409212","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":84,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"832e21ce-d556-4664-bfb2-5a43691e9d59","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":84,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"02e4d9c3-b1c7-452b-a96f-aa42ff8545a2","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":84,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"8cd19365-23b2-44fb-8d90-859d8bcb0943","block_type":"box","text":"assets.","page_number":84,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"eab69160-ec9f-4b73-8459-0bf78da9e3f0","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":84,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"7c4cd2e4-766d-43b0-9183-329397e060d0","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":84,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"1ae4f15d-16ab-43f2-b841-da4042500ca9","block_type":"box","text":"e.g.","page_number":84,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"c21f4668-395e-4c81-9362-067e0784b512","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":84,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"02a29a0d-6998-4215-9384-1c247de9a437","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":84,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"c9f413a5-bef8-491a-bd64-4d18a3ea954e","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":84,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"63d020b8-bad4-49b5-ab6f-067dcd1d1320","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":84,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"56ae71b4-dd22-4b8a-bd3f-808ede027cf1","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":84,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"6c23979f-29b1-4f39-9a08-fdf15e0c7879","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":84,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"36ff4f18-2230-4df0-b57c-515d54a335f0","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":84,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"3e398fd0-b7fa-4aff-b2a4-500099d88bc7","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":84,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"ee345d5c-acf4-4257-a5c7-cac00103187a","block_type":"box","text":"countries.","page_number":84,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"d9ee10e5-e09b-4119-b2cb-0f80b0f7ecbe","block_type":"box","text":"Issuer Insolvency Risk.","page_number":84,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"2bf90c72-4673-4996-bc34-728ec59780c4","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":84,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"7ee0592d-981a-4236-821c-b8a392d94a0d","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":84,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"343d9cef-174d-47be-a40e-6fcaf4c723a3","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":84,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"73a23719-5330-40d5-a751-d73240095da8","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":84,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"5bc4eac5-2bb5-4ada-acc5-cc4a66dda9cb","block_type":"box","text":"issuer uncertain.","page_number":84,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"2cb04bab-20d4-44c4-9174-dfeefdd7a1ae","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":84,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"871790bc-fe77-4c1c-958e-5be1184714a8","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":84,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"e08ce058-2b85-4d63-9f68-603e2cff417d","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":84,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"559f429b-7db5-4757-9f7e-c9e5199d30b7","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":84,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"75f2cfbf-8daf-40da-8e8a-acabce5bdcb6","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":84,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"a1bc5250-cfef-4508-b33e-3772db4abc4d","block_type":"box","text":"eventually be satisfied.","page_number":84,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"cc2a2990-7073-4901-89e8-34a00ddb8106","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":84,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"a3672e3e-5aaa-4093-854c-486585760fba","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":84,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"8a9a13e2-ff70-4355-98e9-c3a1fd6be733","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":84,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"87bb6a23-b25c-4bd4-89f4-fc1ac40a166f","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":84,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"678174fb-f8a1-48ac-ab77-0b0f0ef809d0","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":84,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"3b179684-e167-47c4-a50d-b0fd9fb2cedd","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":84,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"4d67930b-7c05-4d66-8786-2400621bb45b","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":84,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"114e088c-86bf-4657-a584-5e5c7a2aa725","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":84,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"6354ce8e-7499-4b25-9b8f-423ff21e3fd5","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":84,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"f6726f18-4d46-4a11-81cd-8ede3d9b1325","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":84,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"0512e35e-6cdc-472c-9613-962b4f124e66","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":84,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"c6555110-d034-4aaf-b5f0-b7479c0b128e","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":84,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"c767b68c-9caa-45c3-905a-80c072fe1fe8","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":84,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"e8bbae6c-fc7d-4cea-a462-d05593ad866c","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":84,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"74577316-8d0e-497a-bfaa-4fed09097022","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":84,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"014d1f5c-6bfe-426f-a030-950a57f103bb","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":84,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"80462880-c907-432f-a9ac-1c832138293d","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":84,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"7c477b39-d4d6-4075-8804-7da2a1878210","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":84,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"f4d556f1-543a-4da7-8519-a7d2a31fcc23","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":84,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"51cf95fd-b5d2-481f-ae7e-25f8085c5d56","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":84,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"71dc6b3a-4fe9-473d-856d-d951fad7e9d5","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":84,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"3ebc107c-487f-408a-85e8-f0a282e0149b","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":84,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"55d8e98c-cafa-4169-9a74-6e7dbca0b25a","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":84,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"7cf09e21-11b7-46bd-99a7-644fc72181a4","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":84,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"4476869e-89c3-493e-9a4e-d15121829980","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":84,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"048a45f6-936c-4438-bba9-07d69c7496d0","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":84,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"d104cb43-0933-4467-b5b1-5719fc6b8f4d","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":84,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"b6bf4985-4a27-4dea-b328-17aaa223a25d","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":84,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"e755cb5d-e843-406d-ad45-4b24da8cf2f1","block_type":"box","text":"that assumed generally by an investor.","page_number":84,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"06a1284d-8fac-494b-ae56-5a6cb6437286","block_type":"box","text":"II-48","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a1566f9-bbaa-43e4-b81e-2b0320d0a102","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"abd37217-9302-48bd-9984-37d748d9136c","block_type":"box","text":"Lease Obligations.","page_number":85,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"6f264e91-032a-4f95-912e-eda140908434","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":85,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"26a6df70-7e14-400c-8899-d93bddc224f7","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":85,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"bc41a3fe-91de-4fa1-b5ae-22a7b6d01001","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":85,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"4023fba7-da93-4b65-98b6-673ac1dc521c","block_type":"box","text":"Life Settlement Investments.","page_number":85,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"dc3bbc0c-28a4-4f7e-a99e-4f25c44855d9","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":85,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"62737752-9542-403c-8bab-dfc817ba931b","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":85,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"fcbbb043-1153-4fca-9770-8862730935a5","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":85,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"c4a9110d-4523-4c0d-b9cd-c021ca0e2fa5","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":85,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"263c0f72-a7f0-4a4b-bbaf-201b328dc1f4","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":85,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"64082687-5313-4a04-bf83-d3c36c9745bf","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":85,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"61e55055-7d84-4c6d-a40b-30de71cc0743","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":85,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"0c8863fd-27d6-4311-a36b-4bb7ecda13a2","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":85,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"1d4ed2c4-b354-49ff-8d95-ab3fca89ca9f","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":85,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"4bcd1272-fdcb-4007-9c9f-797ee1098c41","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":85,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"faf0173f-7f73-4009-bb43-938bcc21b4c1","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":85,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"9522d9e2-a4fe-49df-9321-94bbae285250","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":85,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"9b923b69-0fbf-4c68-9cea-ba08014b2374","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":85,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"b6bea41f-f9d6-4e7f-af61-325fcffaf4aa","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":85,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"9d088fe3-31b4-4987-91fa-0ba9fdd6d512","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":85,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"27dd948e-0bd8-4d15-bdb4-962d1bf5a41e","block_type":"box","text":"Liquidity Risk Management.","page_number":85,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"23297d8a-ca8a-4e7d-91f7-2b939d95cb0f","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":85,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"4fe9172f-15f4-4188-b9ec-56fbf503a3ad","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":85,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"752999d3-cf78-4eec-9dcc-92e888ad0320","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":85,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"4c7947b7-fb65-4d38-8b75-c78a7542e45b","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":85,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"c7882301-ac36-4fa2-96d2-1578812490a1","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":85,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"a0109b23-bad8-4754-a423-45214ee0fe46","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":85,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"a3649e8d-3555-41e6-ab48-22e49577a046","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":85,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"70df1e0b-e2ae-42ec-a977-77c9a87235ef","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":85,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"7d2e7fe1-8472-4776-bd1f-4449768aeecb","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":85,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"373f327a-fc34-437a-ab14-f73af468066b","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":85,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"4e547188-04ea-4619-9093-99bcf8fc7257","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":85,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"30fb8a8f-ded1-4b21-b512-fc25e268b02d","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":85,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"80a6af3f-89f9-400c-b0a3-78baafe79a20","block_type":"box","text":"Master Limited Partnerships.","page_number":85,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"fc04c5ac-b191-4162-a42e-75b14fe4f53e","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":85,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"3e7564b1-6d2d-436a-973c-b1887fbe711f","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":85,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"72fa3aed-1e0f-4cdb-9c02-c4baec47a1d0","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":85,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"5d23e435-9472-4f2e-9255-d4e38c970b34","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":85,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"caed486b-fb8a-48f3-a6d9-8d126925c1fa","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":85,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"7972d33b-cde0-4e79-8c03-90f45d0a9ff4","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":85,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"5d3558ae-9b3b-44ba-a508-6714fea037e1","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":85,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"449c1d3d-fac3-43b2-bd4b-b1bcef84b401","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":85,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"4f67afcc-09be-4c28-b293-9abfa64ee1da","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":85,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"50635c01-1e06-4b56-80b6-f6834dea1702","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":85,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"b95e06b2-ccfa-4486-b537-b2c9c413eded","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":85,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"62f0b57b-8a2d-47cc-9599-3d3d6b36c0be","block_type":"box","text":"in the partnership’s operations and management.","page_number":85,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"33ab66a8-4926-41ab-abe1-cd137b46a573","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":85,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"4a173ada-cd1d-4647-bbd6-7d805567d695","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":85,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"fd81fff6-269c-450e-b547-191aac5c463f","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":85,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"114b0177-b42a-4c77-915b-571525cca4da","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":85,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"1a11d9f5-71c6-44d0-8924-02aacd751a4b","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":85,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"7c2f2553-284c-4a1b-9bc5-d12a7d492b88","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":85,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"2ee699dc-d576-4fb3-8b0c-ddb9c693af2a","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":85,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"07e70d9a-eb88-4a58-a9fe-9a42aa1ba702","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":85,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"05b1cd61-9a31-4933-b9f5-97726ef26473","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":85,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"de946968-3f7b-4a97-b323-575ba8ce13d3","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":85,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"4edcf67c-f537-41f4-a151-2035323707aa","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":85,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"75b3eda7-7db3-4a2d-bcd3-434cab7c187b","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":85,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"3f274f7e-225b-451d-8905-d8320a1a0f95","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":85,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"0ed3897a-69a7-4db6-a2be-88ec1dff72f6","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":85,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"eba06c58-48f6-4a40-9505-6498c1fb978d","block_type":"box","text":"II-49","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4241ffdd-0557-4a3d-a471-88e82fe85216","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"44ad308f-0ddb-4996-9cc4-d1674074a64b","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":86,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"b287f2d1-8080-442e-b167-a9970c617650","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":86,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"ea997b7a-5579-42f0-932f-b221b45d8946","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":86,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"d8826c54-253e-4eba-93d4-186e7371ac0a","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":86,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"7b397fe9-4b84-41b3-ad50-f6199c2f5e95","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":86,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"da7485a7-e140-4be8-ab15-38b136af8b3b","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":86,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"24464353-26d0-4bbc-a059-d6b7423361e5","block_type":"box","text":"Merger Transaction Risk.","page_number":86,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"c8285258-6752-4fa3-ac19-c5830aec2a28","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":86,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"35779911-4e01-4ebe-9f60-01575475f93e","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":86,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"1e98cae1-f8c6-4204-bc5c-035cad6e970b","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":86,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"50608816-f4b6-4c0f-85b6-61a75a62af1c","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":86,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"5354341e-644e-4797-90ac-15fdce66cde4","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":86,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"6e89a3db-f03e-4321-99a6-e0e99de10778","block_type":"box","text":"the Fund and may lose significant value.","page_number":86,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"26d50d7f-de77-47d6-ae6b-dffbc0e3aef3","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":86,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"042d9d3b-12da-404c-b3cf-ef2b32d0851e","block_type":"box","text":"Certain","page_number":86,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"07f9a223-c58c-4214-abd7-9daa079f2d72","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":86,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"6f797b1f-997a-4aff-9d8d-60723dc5c8de","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":86,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"d9bdceb6-365b-4e97-bfcc-0fe9faf1cde5","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":86,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"4eaa8d67-9b9b-4146-abc2-9c56cf569faa","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":86,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"20aefd02-7884-4922-8ba6-180a3d4cfa83","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":86,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"398de399-b8b2-4270-81de-4929c8f4e8d4","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":86,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"6fa35609-deef-4756-b429-62ec98c3f5d5","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":86,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"c41bf134-c89d-401f-a644-bc38ae81c1f9","block_type":"box","text":"branches of domestic banks.","page_number":86,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"d6e0ea36-340e-4311-843f-2ab87993dee1","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":86,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"139cf2ab-4e0f-4354-9c1c-29c13e5a4df9","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":86,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"9f7d2e38-eb6c-4e3d-992a-cb4522581626","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":86,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"e1afd155-4615-43ac-996d-2f5e1148a1c2","block_type":"box","text":"paper of a foreign issuer.","page_number":86,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"ac2ae516-a68b-427d-b413-0869e7be08b0","block_type":"box","text":"Money Market Securities.","page_number":86,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"5d121c59-475a-4616-a627-fb3c8226d0c8","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":86,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"8bdb668a-d5fc-4f9d-a432-3419ebcf531f","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":86,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"acf0a8d6-ad47-46e2-b30b-214c7293a400","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":86,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"164f9e24-7dc4-4710-84d4-00cda39f1867","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":86,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"c2b02519-cd3c-4651-b130-d1215023ed29","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":86,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"6fd06f23-b668-4bb3-8319-429ceac96283","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":86,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"0a725425-4d26-4735-9717-8aa9175c063f","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":86,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"81d9377f-83ca-459d-bc7b-7dafd94c77ea","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":86,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"f877a10a-f83c-4ae0-86f9-6a516e738be3","block_type":"box","text":"agencies;","page_number":86,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"d604dd52-5222-47ae-9f20-675ea7eada30","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":86,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"c91b2ed9-6371-4b3d-8b6a-6927144e6db9","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":86,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"3e6a6db0-9eb2-4952-bbe7-4ef87985175d","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":86,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"98f18575-1c21-4fa9-8c54-8e93319d8f53","block_type":"box","text":"obligations and credit card receivables);","page_number":86,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"42fd8f49-b6ca-4fd7-8622-880ce560f2a0","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":86,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"0d6332ed-eac1-4f56-bd6f-849602a44499","block_type":"box","text":"authorities and related custodial receipts;","page_number":86,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"34b32fa6-3547-4817-aa05-9aa8273ae7b1","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":86,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"b2910093-96b3-4b09-8348-0d25b6c4261b","block_type":"box","text":"agencies or authorities;","page_number":86,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"5e38035b-f9da-4b3f-b570-402e6d2340df","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":86,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"52d69482-b38c-4cf9-aec7-4152dc4aaa82","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":86,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"2382f29d-d889-40da-a0dd-a25e39007709","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":86,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"664f8a74-4909-40e8-8514-db8000752257","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":86,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"d43b4efe-8886-411e-b18b-97e7efdc5eb2","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":86,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"18eb36ce-dc8d-4d10-ab58-2d105f6d8f6c","block_type":"box","text":"States;","page_number":86,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"f311e1ca-6cd5-47b4-a830-35b2629adb09","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":86,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"21f13e19-52a7-4214-9ef9-cbb06d34af42","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":86,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"ea380ec5-77f9-4e13-9e9f-4aeed287975f","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":86,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"87e221a0-476b-4b2c-bf69-03a564ae72fc","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":86,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"1098342a-fa54-4560-b5db-6bb48dde24d5","block_type":"box","text":"II-50","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"78423eef-6a39-48ba-9e53-ba18282edd93","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c80d7b1c-6af0-4798-895d-bba0261b6420","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":87,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"6db3d5b5-7cab-4444-9383-94efd3f3281d","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":87,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"bcfdfc1f-1fcb-4610-b9a1-ef9d488ec7d0","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":87,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"247ca174-68e2-4215-8daa-e7c216b70c83","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":87,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"857056dd-cff8-4f42-a16c-d60dac83fd99","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":87,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"30faa15e-d35c-4b09-b901-5f4fa7486f6b","block_type":"box","text":"States.","page_number":87,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"9802b08b-4bb5-4ecc-9346-a34945c8e933","block_type":"box","text":"Mortgage-Related Securities.","page_number":87,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"1f942d24-5b61-46b1-8178-031efe4e0a23","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":87,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"3c96db47-226c-4892-89ed-fbb1bc5f11cc","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":87,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"8ce15b0e-8be2-4eac-8cc9-7109702d6b10","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":87,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"191de22c-9e47-4802-89bc-693d91545a89","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":87,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"ad7f8df1-7fc1-4ef2-b8c0-855ffefdb93b","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":87,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"1a5fbc8b-2006-4cde-a65a-28e0f2c2bc44","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":87,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"4e73f26c-d3bc-4f9d-a0f4-71a51fc5d70e","block_type":"box","text":"maturity or specified call dates.","page_number":87,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"08a3916c-4411-46c0-bdb6-1a162aef7488","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":87,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"8d124af5-22f3-40e8-919c-48ee86b43786","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":87,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"456f4ec7-a1e3-4b99-8ba1-c690e6d2506f","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":87,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"b85092a9-ea76-4d20-8735-a54e77fe8107","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":87,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"982c0301-f08f-4059-bb8a-a25dd3b24d2a","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":87,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"e0601d34-c4ec-4662-bc23-90d8fe079a60","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":87,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"087c27b9-96da-401b-9ea1-5a061fc0c6b0","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":87,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"c6032e3d-2423-4aee-8935-91101ea1e461","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":87,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"ae48679e-a990-4dde-81c5-716058b0cc5b","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":87,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"b9557451-d170-4125-a530-2bff6c41c31d","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":87,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"75610fea-215c-48ce-a8db-0b3c7c4f3ea1","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":87,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"c4aaa509-0a56-43d5-b172-ba7f9cf39c35","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":87,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"19106157-46be-4928-8b30-b104254956ba","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":87,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"93f1e3e8-8f45-457a-9f9f-918a9bf4a499","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":87,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"ec485b2d-9f4a-472d-89d9-9c6e87cae752","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":87,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"f2f3e41e-d469-4b92-9b45-874d608961b0","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":87,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"68c349ab-9c78-4020-ac69-35ce5cdf2c3b","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":87,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"22d9ce2c-31af-4165-904c-01d0f3bfd92d","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":87,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"b1b15465-338e-4e9a-89db-994b68114503","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":87,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"24442731-d6f2-4bfd-9a90-e3d5f7f361d2","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":87,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"592a0f5f-9f2f-4fe4-8bcf-70f44cf0f9a6","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":87,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"287218e2-566e-4036-a75a-556ca0d972cc","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":87,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"aa08f210-9706-4877-8436-045407a92f57","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":87,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"d8d184ed-6bf4-4b82-8d1c-74576c615882","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":87,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"c750d492-1b04-4dec-811d-e4e957882e5e","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":87,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"b127566d-8870-4108-97e8-3c919bf11d73","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":87,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"909066b7-d576-417c-862b-c3d387865e91","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":87,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"ab9e9352-ebf3-4ed8-b375-e8813d69a8ea","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":87,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"0372bffe-57eb-4443-a6cf-34bebac2b552","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":87,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"51af63f1-91f4-4b78-8e26-9766f1c6e181","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":87,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"cd1f4300-18e9-4c6c-9096-9b2554083fb5","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":87,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"7c4ce928-91d1-495b-82d7-a5856468428b","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":87,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"4c1c3601-30a9-4053-b170-9251296ad2db","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":87,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"354e9fe2-4afe-4c1d-8fc5-fb4a5871319d","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":87,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"b8e240db-ee7e-4a2f-97ce-921a00043e6e","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":87,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"9fdc05fc-2ede-4d47-b1a8-ec3477b1be63","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":87,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"d38d40db-e92d-4470-8d13-fb61f01369c4","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":87,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"d71cd40c-e679-4325-a0ec-015938972885","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":87,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"ca88a5a2-3fb0-498d-a49f-9311e5480bea","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":87,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"c57bd549-cab7-47c8-9343-667677a4b8a8","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":87,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"15a1449d-e6fd-47fe-a9e2-057f9d5c8c1f","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":87,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"a9084b9c-4c64-4450-8310-2a17a2b40426","block_type":"box","text":"II-51","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d935f0a9-178d-4b25-961e-0e1cf386d5f2","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8286243-e3be-4b81-8561-c2d7055948e5","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":88,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"9d0762b8-434c-45f8-922a-e25e850ef204","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":88,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"a8af6669-a705-4003-9b1c-b012bb55ba75","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":88,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"6e01735c-86db-448f-89b6-661c00396ac8","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":88,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"cd5ac32f-c3fc-4de5-932b-617222e66c22","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":88,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"715f28f8-e429-4a83-a939-00170bdf9a3a","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":88,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"be47391e-70a6-4c48-872d-1805545792ee","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":88,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"2ab2b60e-35d8-43b4-a690-8865c274c270","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":88,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"e5d95f8d-728d-4dd0-83af-dbc4e0c49db5","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":88,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"0fdd7d0a-b64b-4c8c-a1c5-8552f7401c29","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":88,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"6b1ba158-0c5a-4fcb-9d92-3f6f1686465b","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":88,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"a6629d37-3322-47f0-ae31-fef3d1d321f1","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":88,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"c37b072a-f242-4108-9928-9da1d11ac1c2","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":88,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"9bbfb021-addf-49d2-99ed-b4a4cde86cf6","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":88,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"5ebaee12-e929-446d-9bfb-4af23e99bef1","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":88,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"2acf8e47-fbdb-486d-b151-5384060da6de","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":88,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"a3898eb8-f919-494b-b182-7c451c47288a","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":88,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"02487947-176f-4978-a0b0-e0eebe4be0b5","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":88,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"9d4d7f4d-58b0-4730-a70c-ebab7289ac13","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":88,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"02dfa455-19d1-4be1-822b-ebeeaca24386","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":88,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"fe795a6b-6137-433f-9cc1-3dfb5a5d6b7d","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":88,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"2924dd24-c0e8-4f29-8941-89b7e5172576","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":88,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"ec600980-7269-4609-8daf-af3e62e7cc3b","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":88,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"14b7c22e-6510-41ea-a79c-3a05e5d49a89","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":88,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"2e9ce68e-ee18-4871-96d7-27f2c635afeb","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":88,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"4ac7f7da-2455-427a-9757-d5662d3f681a","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":88,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"9354d1dd-413d-404c-825f-c2d3a853bafa","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":88,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"fb491809-d898-46bd-a5fe-2dd5815a4aa4","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":88,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"350313e7-23af-4fda-909f-9e3714f7f576","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":88,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"9e099475-bd64-41cf-89e6-722168f262a8","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":88,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"3f92366c-d4c2-4714-841f-c82987d6a036","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":88,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"fa290e95-7046-46d4-9fcd-76312ab47bc7","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":88,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"074bf348-b478-4c96-81ab-384f5f327b10","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":88,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"47b3260e-a691-4b1e-ab15-797c62594de6","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":88,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"02d83ee7-fd6e-40b2-a7da-c9c0fcb2c00c","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":88,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"9e0481fc-b829-439d-867c-7c97da751c93","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":88,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"8a4f2da0-5a8d-47a9-8a77-91b2417ff51d","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":88,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"dcb69a87-5583-420e-8395-3d63b5e67dcd","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":88,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"e92f73fe-7ed7-4d40-8d6c-d980685895cc","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":88,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"3b233273-8e5c-41ef-a8a6-9ef3542f6f0d","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":88,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"68bd9bce-2ad3-4e96-8ca3-6ac2d31f1e32","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":88,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"6b57cfa0-e794-43f9-b670-326a8b91cacd","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":88,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"12badcdf-ceca-4355-a16a-55aa0c4f59c1","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":88,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"c3aad448-7cf0-4b6c-ba4a-027e56ba38ef","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":88,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"69926908-50de-4f43-92c8-2bbf367b18db","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":88,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"c08c84c6-a663-46ab-899d-1b54371c4109","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":88,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"bd6506fa-aa99-400a-832c-089c2d78aa87","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":88,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"c233e6cc-16fb-46a2-a52a-909aaa28a438","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":88,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"a4d386e1-de70-4286-beac-8c219aeb503f","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":88,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"e648b099-f7fb-4542-b3f4-08ee29704d96","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":88,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"b88dafb5-daed-4cf2-a935-19fdd75e2456","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":88,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"ff9726a0-cbba-4e29-b75f-2ffd662b2741","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":88,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"a701afab-e126-431a-86b5-b4f6c34424ee","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":88,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"cb979669-d644-4177-a5c5-b99b581f0d21","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":88,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"43657399-80ef-4cc7-a27d-513012828679","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":88,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"185a55e2-f0ab-4595-b2d5-2b5033a85308","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":88,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"1fcea04f-c7ef-4d07-9a01-575c55904172","block_type":"box","text":"II-52","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a44b6eaa-42ea-4e63-86f3-e5e40ae81cdf","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2198031-aff7-4eab-8878-6e3509c8415e","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":89,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"995c3f87-f023-4331-83f6-6766cb0e6114","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":89,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"b77f3f31-837e-47c0-8167-2f05f47792cd","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":89,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"faafa915-f6e0-448d-ad52-5a3291d4e347","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":89,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"bd36f19f-7588-4f66-805e-cd8f84e2b1be","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":89,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"3ed500d4-4a49-4f1a-b4a7-40e1fc1922ba","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":89,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"3a8b0ce0-5f45-4c09-b4dd-915b151603cb","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":89,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"522f2a8a-5a8e-43dc-af78-76359b5a31c3","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":89,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"8e2d903d-784d-4cf2-ab05-3b19859812ed","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":89,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"e6388d68-6a87-43b0-8ba2-45eb23889571","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":89,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"e2243c32-7644-4824-82e5-f4495d2f1116","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":89,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"dcfe3922-83b4-44f1-ba03-8e6d640012dd","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":89,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"a9ec7bc9-2c2e-485e-9e55-255e0762a5e7","block_type":"box","text":"of principal because of the sequential payments.","page_number":89,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"b7838b70-f11d-41ba-95c1-acd808855851","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":89,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"7a8f64c4-1ca5-46a5-a435-449b72fb7339","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":89,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"57a1f862-c4c5-4b53-9d35-c2b042100df1","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":89,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"82c8cdb4-697a-47a1-b6f0-06201d86ee33","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":89,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"1a677abc-0378-4a4a-aac4-75d385949656","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":89,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"ff175967-0383-4a06-b2b7-aae25161076e","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":89,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"212a26ed-9ea1-40fd-b930-56abb4485140","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":89,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"766be1a2-7393-4464-910a-ea0a3b514006","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":89,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"72beb2c0-a637-4864-885d-aa461d354f67","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":89,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"cdf94c35-30e0-4bb9-80df-1c43c8db184d","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":89,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"088024bd-b7f6-4a50-858c-7a4f771e6fd2","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":89,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"107a1674-2e90-4ff2-8b65-03b8fecf95c7","block_type":"box","text":"securities of any single such entity.","page_number":89,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"65242c25-2568-4f9d-af40-b0854c35b0e5","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":89,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"c91397e8-3520-4dfa-a831-063f089cf160","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":89,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"313fdfcb-3b37-4712-ac22-557a11f5cb39","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":89,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"16534011-9403-43cf-8764-7436b6ebb8b4","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":89,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"0299079b-1041-4b58-8696-4f35e697fccb","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":89,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"449ee021-ab3a-4bf1-a0ea-88f9ec1fe204","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":89,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"ca602991-ebea-4432-b55f-bb83de2ba986","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":89,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"a0023245-cb49-4012-822e-01fdec111efd","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":89,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"6be88138-c889-4939-88b0-8f43e9fc9e5c","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":89,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"2cfd9e28-c1c8-4005-82eb-eff851cd812a","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":89,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"4239fb17-6c19-4d6b-9c84-7c062bcdba2c","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":89,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"76f5aecc-5e6d-47c9-853f-c1c695db280c","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":89,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"9ee44b3f-9073-4740-aa37-fd5f9eca270f","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":89,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"91a00fae-d0c4-44e8-bf20-0696d69670f3","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":89,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"cdfa7ef2-e2ae-4025-877f-a3ba9076a1e3","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":89,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"ad71110d-d71b-446b-99a6-4cddabbf9895","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":89,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"f3bff61d-0055-4389-b0a8-a81472630ab9","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":89,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"23cc36e9-1496-4876-acce-0076c52f1858","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":89,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"ed857d87-542c-4b35-a5d7-d2d20c2146ee","block_type":"box","text":"classes.","page_number":89,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"26baf8bf-1784-42c0-bb51-d8fb5abd1822","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":89,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"1bac49b7-0f6a-437f-a8c4-db2a0051d138","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":89,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"bef27f3b-c0aa-4eee-8f1a-cc31c0d2d06a","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":89,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"34684281-72ff-41be-b3ce-9b69cb5ed66e","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":89,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"4da9259e-0859-495a-9fcc-787b7d365cbe","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":89,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"19f96f97-aae5-45be-8618-d351a16819db","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":89,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"d3b678a1-7d0d-484e-84a4-5f5c0a5e293d","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":89,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"63d9037f-2032-4059-9b6b-3ec9474b32d5","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":89,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"fb779a81-07b6-43be-90fe-e35616d8b63b","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":89,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"d68b24bb-dfbe-4682-8d2f-a5c96a1e750d","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":89,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"d8a800cf-9fb6-4db3-8f68-69dd0f6a4aad","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":89,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"8d029fc4-cdaa-4de1-8d28-6d937a79e622","block_type":"box","text":"to a designated benchmark index.","page_number":89,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"daf7e47a-06aa-4e6c-8000-35e8d7f11fc6","block_type":"box","text":"II-53","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8c036c5f-6618-4804-8fe9-6aef8ac88608","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e996cb13-6576-4b11-89a1-ec9f9cbe2c6d","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":90,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"727b64dd-a926-48b6-8d72-9c1728bed510","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":90,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"ff455b7f-9636-4051-8590-81208f3e9d0a","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":90,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"e2c266af-9cbc-4d8a-9651-55fe2d36125b","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":90,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"4f4b73e1-2e5e-4691-9268-6007ad67b1d8","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":90,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"e37be29c-7f1c-4306-9b67-e1b41c8651ed","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":90,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"051e5dc0-9c3c-41ac-84ac-4b919c4742ab","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":90,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"069b7e5b-0831-486f-8328-7c303e561201","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":90,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"4a8ac081-2b62-4033-ab6e-3631b474527d","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":90,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"0dbb5ff6-60ae-4575-b636-b2d5f21bef60","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":90,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"6abe4daa-2d0c-452d-bc9f-1e875ff22831","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":90,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"1bfd6886-574b-44cd-a0cc-24f2a4aa423d","block_type":"box","text":"CMO Residuals.","page_number":90,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"0954b56c-7a06-4fa7-b29c-f03743e8a3c6","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":90,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"6a8f5922-1bda-4252-8bc0-9e4ee6592fb5","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":90,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"871cdc2c-720b-4f52-9979-d509b9e2ed29","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":90,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"afb420c5-0cb6-4dc6-8a96-7bd7fce9d619","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":90,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"56bda93b-0f64-4c45-8692-c3e33501a930","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":90,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"37acc593-120c-4f1d-a61c-c2944afed086","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":90,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"b0901b66-f0fd-441d-8817-b99726960b80","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":90,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"ac464df1-59d1-43d2-a862-1caaf429e2f5","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":90,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"ac46cf89-89ee-4edf-a000-e478556e8938","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":90,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"1e8ad5a4-a1bf-4852-8761-fa6e3c0d9d1d","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":90,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"e3dd557c-ae46-4ae7-bb9e-bbcb16b17f65","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":90,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"a8e29b3e-79bf-4084-b33a-77aa6b636979","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":90,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"e11088f3-800c-4d0f-8897-688fa24728e5","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":90,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"ebd7a87e-6411-4557-9d3a-0eed9cee5d4e","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":90,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"ea55f3c2-8b18-4379-ab6c-d74f203fd073","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":90,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"adf75dfc-94fa-4475-b737-dacb3a322912","block_type":"box","text":"a CMO residual.","page_number":90,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"b6bc0bec-54ac-44d8-8a72-39a179d0fce0","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":90,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"d4a35308-ceff-460e-9d3a-bc2e1d43f430","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":90,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"1461c2b4-dc71-4383-a698-ddde7f14b7ef","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":90,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"963b3e4a-ed34-4a24-9737-eb7a2a52eaab","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":90,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"320d21e2-94e2-41da-bc25-c00c889a3843","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":90,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"9a9dca07-df96-40ea-b692-05daf2cffd95","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":90,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"1ad79815-6774-4454-84c6-1bfc06d46891","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":90,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"af1f985d-659b-4a1f-bbd2-76406a453445","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":90,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"bb9cf1f8-ba03-4c3d-856f-e87f95938ef8","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":90,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"1f33fa1c-870a-4700-86e5-d074e217689b","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":90,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"32f7e44c-e9ac-49f4-b4ed-18ba29f41b53","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":90,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"bb2933d9-54ef-46fd-9993-51dd71da47e6","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":90,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"37a713c8-9c1f-415f-9305-2bf71a4b1087","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":90,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"115ce630-1ea5-4904-b64a-274e71175978","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":90,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"ba996f6e-160f-41cc-b8b3-882716ec51e9","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":90,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"81a98586-f86d-4933-b8c3-118fddc3be36","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":90,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"49adaa80-e227-49c7-a06f-ea1759c155fb","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":90,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"474d5570-8530-4029-8cb9-bf78799d72c2","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":90,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"a98fa5c8-aeff-45d4-aeba-89f27a221a53","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":90,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"89fc6587-5395-4c14-a1b4-5506584ddc10","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":90,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"ea13f2be-9264-458c-a3f9-c76cd1c32966","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":90,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"8e5b4711-4935-4f29-a0ea-52ab25d3bde2","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":90,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"d1b1e226-9141-403a-9836-431b591e21a9","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":90,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"97baa132-0666-4773-a5f5-b5a85ab18eaa","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":90,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"8275ae21-73f3-45ba-bd6b-369af3a70ffe","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":90,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"73bb8fab-3477-4df9-92e0-114e432876aa","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":90,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"37d2b8c4-a56c-493f-a795-db432fda49ab","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":90,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"9ba1f709-9a3a-4638-8ab7-9c3a9b233ff6","block_type":"box","text":"Tiered Index Bonds.","page_number":90,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"d5bd87e8-20c9-44ce-ae89-2fe1f6d3576f","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":90,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"fb5ce730-e0df-482e-9a15-cf7c42c10139","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":90,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"67204dfa-1cdb-4ee3-ac1d-eea63931b36b","block_type":"box","text":"II-54","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c8e27eb-1c5e-4e13-995e-d09fddfc868e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a26fe926-4971-42a7-a8c3-34fb87857958","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":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"0b64d3ce-4a06-471d-bbb8-21d33acaca2d","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":91,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"0d1ed120-200e-422e-88d3-365164ca5db4","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":91,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"10c0f37c-f55e-4061-b489-bdd70f9ad9a7","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":91,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"3b8bead1-def2-411b-bc99-250d89621190","block_type":"box","text":"that of a fixed-rate bond.","page_number":91,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"c7071efd-4627-42fa-93e8-1af5106dadc0","block_type":"box","text":"TBA Commitments.","page_number":91,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"8aaa6c04-b282-4015-a527-67e0cd2f357a","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":91,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"de58e314-4b77-46bd-a5b8-644f223640e8","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":91,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"e73bfb14-e94a-4b66-9c07-2ea087c6f96f","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":91,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"a2d6f2cf-e446-4a43-bf13-64d0cbedc486","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":91,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"3db36773-ef1c-47d1-8f5e-45934b79996a","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":91,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"11e5d636-d8b6-49cf-9e05-71af095c562d","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":91,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"a3977232-f69f-424c-a12f-9892eb87b507","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":91,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"a9db198b-e897-4558-90b7-0c587f25496b","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":91,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"af9f73d5-bd32-40e9-9dcb-32078a43f217","block_type":"box","text":"below.","page_number":91,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"648fdbaf-9818-4731-8f20-6e0c3cd6973e","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":91,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"782ac259-7587-41db-87e5-69a52ca29073","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":91,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"0a72f09f-97cd-43f2-9270-7dfa106655ce","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":91,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"b1734c11-3e3f-470c-a8b1-3eb7d5d32c20","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":91,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"738f9e99-8287-40b1-82c6-a2fe9fda00f1","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":91,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"60efac30-3a6c-4109-b10a-3dbad7a4673a","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":91,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"87f119d8-de42-46cc-887c-b761ca7e73e2","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":91,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"73f6bf16-b78f-48ae-a7df-74074a13a0e7","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":91,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"82d7db2b-f07f-4977-8aca-f26eade693f2","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":91,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"5ead8aca-815b-4118-a628-e1f2a5a73ae3","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":91,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"f432ba65-c0b5-408b-a026-c47da60255de","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":91,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"ccb37686-66c5-492d-8ef2-4f121f94e320","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":91,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"088a89d0-def3-4248-a8d4-c6e245cf5143","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":91,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"07abd2dc-c15b-4eaf-a3e7-9b59513231b6","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":91,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"dc3a2c68-07a7-4552-b9d6-003484bf7118","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":91,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"ca47c349-702c-4771-80d8-36ab17174f94","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":91,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"4cb33190-07cb-4009-a0c0-9d772f8af0ae","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":91,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"ce98e8fb-5732-4bce-bcb4-530ab9b89877","block_type":"box","text":"securities in the forward transaction.","page_number":91,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"1904f2a1-a574-4700-8447-d390c898774d","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":91,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"66a05145-095a-4ad0-8055-c3a91688ede5","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":91,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"81cacb2b-add7-412c-8836-bdc99935356a","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":91,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"171434a0-336a-4a41-b99b-4736d0412d85","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":91,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"79cf25a7-66d9-4398-b596-309ecdcf57eb","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":91,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"74894544-ed11-4e38-875f-0303a6a78184","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":91,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"7e0a9b14-788d-47a2-98d3-55e7e0c78483","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":91,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"82736e1b-6368-426a-aa83-0efae6aa10f9","block_type":"box","text":"securities (","page_number":91,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"30c2e128-9fa4-4dfe-a8d8-8f55f330509c","block_type":"box","text":"e.g.","page_number":91,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"2bdf4641-f7b4-4b20-b77e-116580c4780d","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":91,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"cc1a9ef7-7572-4873-9ab9-b93741824bda","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":91,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"00c1b606-ac24-48dc-869c-0d86e3a1107e","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":91,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"c71b6e0f-60e2-44f5-b699-6c0e22d87d51","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":91,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"07099925-9321-419a-a065-08ecb830130c","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":91,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"7632f6a9-6dcf-4596-a979-a0e5630eeb8c","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":91,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"d812dd97-ca2b-4810-a786-5dfd18aa528e","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":91,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"6008e98f-3bd0-4de5-9078-e9592cee94bc","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":91,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"6c3fdb22-514b-4708-b3d7-f3d5d3a1c70e","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":91,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"5b6ee709-b955-4d1e-82f5-78ae50bf1552","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":91,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"2ecbfd38-a0b2-4734-8333-af1af63f7797","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":91,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"c29d492a-0bad-4b03-a675-7cbab0a315b5","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":91,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"b008fb18-8f71-4415-968c-0b63c2654ec7","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":91,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"2a4966ad-9e72-4cf5-97e4-3327e20c2b8f","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":91,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"3965ac65-6ce4-4e89-9f66-d10cd883dc2b","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":91,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"74b7053a-b2d4-4200-8faf-d0d11acc1dd3","block_type":"box","text":"Municipal Investments.","page_number":91,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"1f1a0d2d-f58e-4122-a1a8-f589f1938ff8","block_type":"box","text":"II-55","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc9da838-8d43-42ab-b89a-d6a92d049989","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cae16a92-6439-4da9-aab6-1abf17d582f5","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":92,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"0d152e15-f1e7-465b-9faf-79eef182e35a","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":92,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"1c74c687-c7b3-4c4b-b789-b5d46c5fd839","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":92,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"5bc900fa-b5fa-4bc7-b4d8-cb3a970cd6fc","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":92,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"c35e7fec-6ef9-4986-a6be-8689b0c623a8","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":92,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"1a14fb21-4461-4b22-9542-354d8a8df1e6","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":92,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"468bb391-d0db-48de-81ee-608cc8d2ab0a","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":92,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"9fad6bc7-db49-4213-8b6c-dc2e4dee40b8","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":92,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"029cb07d-4551-4fdc-b628-ea74b0742ca6","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":92,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"b34c7a35-cfd7-4eb9-a287-9b9c83632215","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":92,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"10d5ff81-846e-4708-8ae4-8df419cd2c79","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":92,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"9f06b4eb-ac00-4bef-a053-5c8c8b446f05","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":92,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"6d6ab1ca-c944-4bce-8a66-b2921c4ec3a9","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":92,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"155df9c8-0995-4194-aa12-af5c56a22265","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":92,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"fe1c4c28-0b30-4ac9-820a-c1d1d7efdb53","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":92,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"61686ac0-5057-4845-bbb8-7826e8b48766","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":92,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"6690f216-409a-42d0-b084-03f430934ae6","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":92,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"7a85b52f-70f6-47fd-b57a-1fffde452de7","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":92,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"4b592515-7ed9-4da3-a548-4663a3935858","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":92,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"b21bb5b3-c78e-46b6-96c1-efd0bcfb43b6","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":92,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"153f4bb3-e94e-49cb-b6b1-cbe01b9efdbd","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":92,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"468b21ad-ee2b-4eb3-b36a-1658fa3d45dc","block_type":"box","text":"The risks and special considerations","page_number":92,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"edb4d338-7287-4635-9628-80ef3e8fbda5","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":92,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"85037472-5373-4e58-8048-79c308697fa8","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":92,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"daaf621b-fbda-4d45-b6b9-b3e1bc680bc7","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":92,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"f98efaef-fbb5-4bd2-b46c-8e9a98840ae6","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":92,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"b133014b-8597-4a44-9c7c-7b8d31eba50a","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":92,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"2b37934e-3115-4e61-9219-e2ccbd84e413","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":92,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"65290044-e1df-4cc9-9081-a7f0aa54d948","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":92,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"5faa15b5-2d0c-4adb-acd2-6e2dcdebd7e2","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":92,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"caeecdd7-3a75-469c-b9c4-b1d7850504ef","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":92,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"c1ae4344-5213-4809-9262-77e6ea2e29f3","block_type":"box","text":"II-56","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"71ab018c-0832-4864-bb10-b64b2d65a106","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"278c82ca-641d-46ee-9ca9-ac6d28edb584","block_type":"box","text":"Description of Municipal Bonds.","page_number":93,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"ffb1c59a-6d91-4b5c-aab8-bcf3486472fb","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":93,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"615f9716-f3c8-445f-9077-153dd7e2cdff","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":93,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"89ff0ed9-9697-4b3a-bfa0-9598becea16a","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":93,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"eefe4648-d77d-47d5-8e21-b71197ec89fd","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":93,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"e58d16d9-a29e-4efa-8437-e136098f6adb","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":93,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"a23f24b7-7473-485e-88d0-4b425f711457","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":93,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"1ed5d6ef-fa00-4a51-bee0-339d6fc21a11","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":93,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"d6c47f7f-c31a-4838-b325-ccc64fa51096","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":93,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"28a95385-3878-41ea-9165-5d99b3d39e69","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":93,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"cf4a4e64-c53a-4220-8fd5-b6812d1f09bd","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":93,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"4ded6b68-1ae0-481f-a180-c566e961bb73","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":93,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"72c9060f-b2a8-4272-b5e7-b6ab7c9c7a71","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":93,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"71e14af7-bca2-4ef0-b8dc-64f2efbcca79","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":93,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"c719e266-ea90-40a4-a60f-043c030f7b80","block_type":"box","text":"General Obligation Bonds.","page_number":93,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"3715ebd0-eae7-4908-96e8-7f0f0749f7b3","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":93,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"7809a40a-3023-4cdb-a36a-4fa1d8054f64","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":93,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"92d5d834-21c5-4ecc-bd3d-2224cdba5563","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":93,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"96f47bda-6e97-47b1-bc48-d8c53ee12c2e","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":93,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"786c2c3b-1412-4239-bd1f-774ee196a53b","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":93,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"3166b8f2-a287-4015-a021-2b6f0f5268f2","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":93,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"65acbe91-3135-40b9-a9fc-8abd5e6dcd36","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":93,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"4d7c1828-0c99-42e3-9119-28d6505e24b2","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":93,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"19f6b080-526d-4fc5-970a-ba0e64fed167","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":93,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"fc1c98b8-8cd5-4d8b-b84e-7fb9337d874b","block_type":"box","text":"Revenue Bonds.","page_number":93,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"e3e38cdb-0c68-4c3a-818b-b6b07bb4638c","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":93,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"64b49a30-bb60-431f-913c-9079fcdbb3ba","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":93,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"5919c6c3-d695-4941-b597-f40975a8d36d","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":93,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"984d9645-1a63-4227-9797-cb9dbbd64e58","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":93,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"29002115-b592-4640-aa93-346956f5a233","block_type":"box","text":"viability of such facility or such revenue source.","page_number":93,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"27f418d1-cba5-4686-bbc8-273659ce794f","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":93,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"900d2e97-ec5c-49b9-b74c-f1efc7cb9258","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":93,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"34c547ee-2720-48b2-a07e-55447001b24c","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":93,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"730d41ec-a92d-48bb-afef-dbafb3cb9a36","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":93,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"c388310a-36b0-4e09-b73f-45a8ce545431","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":93,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"41d5d4e2-5a7a-403e-b552-0a949910aac0","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":93,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"20f721ff-0d33-44d2-86d4-aa63368aef3d","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":93,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"fba82a03-55fe-4fa5-8943-e543193e76a1","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":93,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"e018b97b-7ade-4da0-b877-04dce5428ba3","block_type":"box","text":"PABs.","page_number":93,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"5c732283-d36b-4d85-b1d5-ba1133c1bdf6","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":93,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"19660523-afdc-4bfe-b1ee-e6957e95a64f","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":93,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"5c784b51-1245-4c38-a5b5-eb915e0d95df","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":93,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"c3e4c6d1-b71f-4319-b376-25ae6de37dee","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":93,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"7950600f-a722-46e1-9a55-dba276a15f35","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":93,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"d03e6847-d4ee-40fa-bb76-8164ebb07462","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":93,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"75ae3ae6-f518-4948-9441-031996af538e","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":93,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"6af7116d-4350-4544-aafa-34160847fced","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":93,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"57e975e2-ac24-4f51-8939-84124a1b01e4","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":93,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"0edc659e-3b05-4640-9a64-5bfc1580e373","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":93,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"e9b8437e-1af4-4704-82cd-c0f922bd7f01","block_type":"box","text":"the particular facility being financed.","page_number":93,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"8cca7ff9-2ce4-4f28-8de8-9e4d991196a2","block_type":"box","text":"Moral Obligation Bonds.","page_number":93,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"76236762-af3c-4970-a981-e0ca8b0651d0","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":93,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"334a1e50-f8a4-4c69-9f68-609397bdec60","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":93,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"7cf3b79e-aba3-4e17-aa08-0db7ef575479","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":93,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"16260159-5f71-4a47-a5eb-7cbcfc1852fa","block_type":"box","text":"that issued the bonds.","page_number":93,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"4a376386-4fca-4b32-8a65-92c1cb58fcc3","block_type":"box","text":"Municipal Notes.","page_number":93,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"31ae9e41-793c-4521-a199-cc60cc5c123c","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":93,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"890a605b-2c69-4a91-983a-2baa31e3dd56","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":93,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"e1c74eca-6ca2-48a2-bb8e-ddb05360f3ef","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":93,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"0e171299-fd29-4f6f-91df-f1fc3afca6b8","block_type":"box","text":"II-57","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c0c9935-0659-4b88-b1c1-b3df9fe9eb57","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94832051-67bd-46c3-bddf-6dff233911a2","block_type":"box","text":"Municipal Commercial Paper.","page_number":94,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"20752bc5-f588-4851-9401-ec581a0ad98d","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":94,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"31ac5c17-58ce-4ead-a9d7-96275e96988e","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":94,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"a7218844-c9fe-4ba0-beda-c08e15eea5e0","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":94,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"d9ecc608-e8be-4180-ae9d-f971d325bfaa","block_type":"box","text":"Municipal Lease Obligations.","page_number":94,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"0f3d42ba-c0f5-423f-a7e4-6c21cd079d91","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":94,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"56620e97-27ee-4634-977a-5e869bcc3605","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":94,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"6597dcd6-c0bc-4281-b4c9-b158dc012213","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":94,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"e0d0a042-53ff-421b-9357-74a6965cb71e","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":94,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"2f1c0136-27dd-429e-bf6a-bf5055702f60","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":94,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"7039936e-cc22-4c7e-a90e-4155b48c3eb6","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":94,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"7a1a2988-2202-4482-a948-ea1d9823c985","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":94,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"42a38018-f332-49cc-b2bb-f7afca4d7552","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":94,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"c1422d40-114d-48ec-8593-4f61fb99b4ae","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":94,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"174e8dfb-1cac-4911-9f58-60a11284393b","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":94,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"3b3f2874-55c0-4265-bae8-8d966f00201b","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":94,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"d1363ff9-c0dd-431f-8d74-51c3b2a71d32","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":94,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"894d42e0-65f1-41ca-8852-9ca0454c9698","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":94,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"4496b499-b165-4d55-b8cc-62141adf2b2b","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":94,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"82f5a0d8-038c-478a-8231-ab2d29b8cedb","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":94,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"be9c1ea1-af00-4728-8b04-2b695883a57a","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":94,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"106ed983-c0a5-486d-af68-8160b73d77ba","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":94,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"f89bbae5-fcc2-47c3-b7af-85dd38b47055","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":94,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"5122e343-794e-4b14-aa57-ad7caed8dc6e","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":94,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"d056fb6d-b912-4ce5-bcde-977ebb656737","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":94,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"a81e66bc-0ce6-4b1c-80cb-7235ff3142a7","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":94,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"4d12081f-803f-4f28-8a8d-45334a2d515d","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":94,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"6fc9b97d-9bb8-470b-a8e6-a4f67bc6e32e","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":94,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"02fb51f1-c2e7-46e7-93ad-f3ac252bc41a","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":94,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"3e051718-4717-4297-b79f-a89a500631d3","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":94,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"fe4b116f-a6c3-4bce-9db6-3918fb48245b","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":94,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"014ae6ce-1056-480a-a066-8561275e5b6d","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":94,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"ef3e48eb-b4f8-4078-913f-7ace274ef563","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":94,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"c22b7675-4b83-473a-a9f3-8a6b353cb6fb","block_type":"box","text":"Tender Option Bonds.","page_number":94,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"303afa91-a036-4ed8-8a65-38ad45c4ef2c","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":94,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"7d39594e-ff19-4468-9646-48618e76055d","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":94,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"f8f08f86-300f-4b35-b239-088083edd081","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":94,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"2981c194-1e67-462a-818d-c78c3eb988b3","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":94,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"64a1bf51-89c6-4a50-adb5-28763db94d85","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":94,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"5e7ab724-6980-4d3f-b83e-76bc9a4e55b9","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":94,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"772538cb-1924-4a1b-8f22-cc52962d11e8","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":94,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"ee10635d-c693-44f4-b41b-e3ff8f524784","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":94,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"2c1d814f-9108-47c0-8d74-adff0c742621","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":94,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"1799c45e-251f-4da9-8cde-e8dcd53e204b","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":94,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"9015e472-b8bd-4ca4-9831-4992f580501d","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":94,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"caa4af8e-df50-4003-8ff3-960785207191","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":94,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"6a226b9f-486c-4e89-8e1d-703594993611","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":94,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"73f9dee2-dcf0-4979-b25f-15f8a650e44b","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":94,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"c8ed3308-cf2a-4a34-9d9d-18fdef65ed79","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":94,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"3b18882a-f9ce-417f-b730-73601b1e1279","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":94,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"241369a8-0ee8-4051-bfb2-e1e0b39d6158","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":94,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"a72143b1-818e-4f14-af5a-981295ac5db0","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":94,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"6ae89d94-1373-45f1-a496-1c35ef043696","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":94,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"e409a8bb-31de-40e5-ae18-b3c0b65087e1","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":94,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"d55ebf0c-4058-49bc-9b64-1e33e0c0fb62","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":94,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"0ce2b7fa-3704-4c2c-b4c1-c2c1ea44a21d","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":94,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"b7fb0c1f-f9e5-4cba-a360-41f3f9200079","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":94,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"e7a288c9-019c-4b37-a02e-0ba15ad4db69","block_type":"box","text":"participation in the TOB Trust.","page_number":94,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"eebe6a5f-3a2a-47fb-817e-8d207d5c7ce6","block_type":"box","text":"II-58","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f5590ea-2c2e-400d-b8f4-ce6f650e1b3d","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df9db7b0-f49a-4ae4-a0f3-166c8c858dcc","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":95,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"15c37dbb-82b3-4516-9df8-190b8b40475e","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":95,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"a40e93a3-c00b-4b14-be90-8ee1e4cd97db","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":95,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"11529d63-7e34-4f17-9f93-177ccf9cb83c","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":95,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"ed5df1e7-e834-43c4-9b02-3abc24ee2660","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":95,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"b7e7ebc2-ab89-47b6-98ac-81f0e36cb60d","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":95,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"02c8f914-7e42-4d5f-be7e-b94d3af85dd7","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":95,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"b94e5037-5035-40e4-9d4c-10fa993825ee","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":95,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"4f90f377-cea4-418c-b2f2-c90db4c39b63","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":95,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"20ffd7d3-3450-4760-be23-304e62427e66","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":95,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"f36318af-c75a-4a5f-ad57-5ef3c165102f","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":95,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"e5ab9fb0-aa00-4197-950b-c32da980eb0d","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":95,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"d41592fa-6e9c-4505-a096-70468ec161e6","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":95,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"021d1c8a-bd8f-4340-a41d-732ec3b0a7f4","block_type":"box","text":"issues.","page_number":95,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"64a74103-b3ce-4846-845b-5a580ac65bde","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":95,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"9113e998-1cc5-4045-b3ef-d8fe8fa67c5b","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":95,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"d389cc0f-4693-40d6-808e-44e2062e6e1b","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":95,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"c0326e6c-25c0-4efa-8089-1b75053390a0","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":95,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"fd5c39ac-68db-45a6-abe3-64d619d164ce","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":95,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"63a01dfd-7a50-4d55-9c1b-7de6dec59adb","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":95,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"cd01e2b2-ed40-462c-ba8c-1ab04bd0e2f8","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":95,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"81255114-0796-4837-9c12-9e9bb7201dc4","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":95,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"23abc78b-b59d-436b-bb91-c18711d75f9e","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":95,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"15d513df-8041-4894-bd1a-3644e38a6ee9","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":95,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"3fa6b59d-0188-4b93-bc9e-5d427a5da36c","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":95,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"e6e58d0e-07bb-49d3-9310-b30de2dc68c9","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":95,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"bd100d91-f3fd-4f3c-9727-bc54119901af","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":95,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"8fe2ddab-305b-4787-9ada-20b6b7800c30","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":95,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"d5caa759-145f-4704-90db-50fe836e2c5c","block_type":"box","text":"i.e.","page_number":95,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"87b81141-c633-491e-9745-e8ddc54d984b","block_type":"box","text":", the Fund). In contrast, in the","page_number":95,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"2069b451-3cbb-4d17-a9aa-5ec692edc410","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":95,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"83750f82-7304-43e4-adca-81e36859e587","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":95,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"8eb03412-2d18-4838-985a-5cb3563bec10","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":95,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"a9d73749-8663-4eb9-8a71-d5f280cd0b89","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":95,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"8a5bcfee-88fc-47cf-8e8a-848994dd1345","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":95,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"96cc2704-ecfc-483a-a938-1f22c42823f1","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":95,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"480f2f6d-3a86-4b6d-82fd-8a5e4e8b4c85","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":95,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"8283a3ec-31b2-413a-a127-91f3eae9525c","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":95,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"58e7a87f-9c21-41ad-980e-3baad9d5f826","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":95,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"0d322301-000e-49f0-aa83-b7a47df653b6","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":95,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"67675bce-f746-462e-81e4-364280934027","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":95,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"1f501d6d-1153-4395-a12b-75981cf70620","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":95,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"cd08b28e-e238-4e48-95b7-1ecaf7b315fd","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":95,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"9a4a48ba-6554-40b3-b973-054380011357","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":95,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"1f05a846-04e6-4a0c-ba9e-2de9688f67a3","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":95,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"00ab6745-3030-4c85-a19e-dc7ab64ee75f","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":95,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"876e0ea6-2d07-43da-8679-825a3bbc17db","block_type":"box","text":"Trust.","page_number":95,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"36e94f44-e190-4a66-8048-842953f08f27","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":95,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"d136d10c-0bb6-4400-960d-d853d2a3e90a","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":95,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"66fe69a5-6936-48f1-858f-826145160d73","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":95,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"8da831e7-314c-46ff-bbfe-e4013666ef27","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":95,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"1cf0a4f6-79d7-4fb0-acd1-c2418f8fe148","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":95,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"6391113d-ac73-4fce-bfd0-3c97ac4673ed","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":95,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"a8acbbe8-1b85-42b9-a74f-0a09d62672b5","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":95,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"7f49fcc6-50ad-44c0-93e1-01990349649c","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":95,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"241bc2e8-d86e-4fb3-83f0-3341941f6dc1","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":95,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"9c8b74ad-607b-4f3c-acc7-7bcd93a777bb","block_type":"box","text":"II-59","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"38ed42ff-106c-4745-a510-dd16d04fc174","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b95bd18-8027-4939-93e2-9729571561ef","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":96,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"212bc303-2ef6-4174-bbb8-51b64e5e7828","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":96,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"0dd7c5f8-826e-4a04-ba1f-62b5c9e6b3fd","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":96,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"338911fe-64d4-4327-b966-0dde33bc4c82","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":96,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"5d19f87c-d177-4faa-9a18-69983fb1a400","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":96,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"7a2ab5f8-24d3-47b2-a31d-2a54ee510da0","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":96,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"04255b78-11d5-4f1a-a0ea-edec1b0d4349","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":96,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"ac797608-6f6c-4330-b5e3-bb240b9ef284","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":96,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"5446c1a0-4106-4aa6-be05-b23fe375914f","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":96,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"25632ba0-191b-48e7-8b27-116bc7816f01","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":96,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"8de5841f-659c-4597-bb6c-099c49430b47","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":96,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"b256421f-db9c-427e-a29b-9695b970e683","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":96,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"d6d40b68-020d-42e8-ab49-cca48fd6d38d","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":96,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"c1403461-ebf7-4f52-ba46-f398f9a19e5d","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":96,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"2ae1dc8e-50b1-4a39-ab3b-3e267b45437c","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":96,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"01d7f00a-74c8-480c-b24b-486639f2ba98","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":96,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"f04b9b43-960c-4ed8-ac8a-37dd3cf4369a","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":96,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"7e47e4ef-af5c-446d-9374-3d5754c8f4d5","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":96,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"df425b8b-1ab6-4ae9-8ea0-217a686035a5","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":96,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"2bd949d4-4346-4d98-837a-5fcc105bf5cb","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":96,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"831342ca-6c12-4eeb-bfbb-8a6cc32113ec","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":96,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"7d06d66f-9c68-4569-8f60-bf141dd755b1","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":96,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"db8b40d7-8086-4515-99e3-e4887d491e93","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":96,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"73d192f8-709e-417a-b66e-201e48b289e2","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":96,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"4bdb8b09-0e7d-4af6-aede-9e1bc9a6655b","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":96,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"4d81bde6-8b05-4cc2-b406-fa44b107c63e","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":96,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"f9245d51-f12a-4e3a-9e53-6f6af3ddc2a1","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":96,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"9c678f7e-71f4-430c-88b3-ff7df986328b","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":96,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"8c52225e-9301-4413-ae7b-6c99f18d644f","block_type":"box","text":"i.e.","page_number":96,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"2e7c0357-18a4-44a3-a7db-8b958f76012c","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":96,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"313fee91-fef1-40dc-9d4c-7564a66a6fae","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":96,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"583906d4-eb5a-4edf-9683-c4bc3c5ed2f2","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":96,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"11cdca3e-d839-4d2f-a5c6-1330fe224f45","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":96,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"18a68d9a-3e13-419a-80fb-a99fbd8e9d44","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":96,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"e0e90a95-2593-4c1a-81ea-1eef9253640f","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":96,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"e64740b2-fa12-4e94-8dce-687eaadb5b24","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":96,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"aa2de199-7b09-46f6-9760-6041e9f014a2","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":96,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"9863af20-8186-4e66-b855-436d9a09e114","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":96,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"d4c948a0-d2ef-443d-a212-6bae4277407b","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":96,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"caf879a7-004a-46cb-9204-df423d2e686d","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":96,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"233c9b10-0ad2-418d-a048-d0c454435b16","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":96,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"e6c714b7-e90f-411a-877b-ad868343efaa","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":96,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"9d925cab-355b-4e80-9edb-ce442539edf0","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":96,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"b6502309-5f8f-49c9-b0f5-834f0997816f","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":96,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"91479e0f-d5d6-46e0-b2a3-9ebc8733b258","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":96,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"440277b2-d803-47aa-831b-9ee8481d0218","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":96,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"3b9877e5-4b70-4a67-9234-68a81a2ae778","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":96,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"ade33714-90a8-446a-bab6-69e37ccec959","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":96,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"8dfa4f1c-baa9-4e14-9b56-528c1b20ccb0","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":96,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"d8fca2c9-daa4-4f71-a420-b8665f15473e","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":96,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"93ce0428-3d42-4d09-8934-406b0ef826d2","block_type":"box","text":"market is not yet certain.","page_number":96,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"e7912fd7-cef6-40d5-aa7e-0170cac47095","block_type":"box","text":"Yields.","page_number":96,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"79822d53-2a19-4b03-93d6-0cf83f59c6a0","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":96,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"52a9c1e5-2175-464f-8d8e-39baf995db6e","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":96,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"a805f40a-1afe-4a22-9e02-b8ca24dfb31a","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":96,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"43494dcb-af37-4ed1-af7e-e8343c035671","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":96,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"e22906d4-2c7c-48d2-bdef-3473dd6ca03c","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":96,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"9e19e52d-a8a2-48b1-84e4-b6a10c815fef","block_type":"box","text":"II-60","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f2c1688-3578-4fe5-a581-f43b30838ece","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"811affb5-ecce-4ddf-8745-72f61962baf3","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":97,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"b3b89c74-38aa-40c9-82e7-6fdecc994f13","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":97,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"92821230-1e61-4d81-aada-8800e802b5c1","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":97,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"ed4a7ff4-9745-4aee-ab0f-ab9fba2bfe6c","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":97,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"c9531315-3bd2-46a7-8d13-e142ff66a966","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":97,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"35f2878f-f1b2-4e9e-85ae-a65ec41cc82e","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":97,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"60803f3b-a0a4-40ab-a08a-0c781f4cdcd2","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":97,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"878ddeab-bc80-48fb-9136-0ed4beb9862e","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":97,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"ff9723ff-dc97-43c5-8731-262486d2dcb5","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":97,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"3e7c1dd7-ba1a-4a57-ade4-13d09b29dac0","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":97,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"d80574f3-6de9-4228-a71d-e789131ee38c","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":97,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"07f9e743-5e05-407b-a22d-a619dcb3e704","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":97,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"c0bb3650-d962-4269-985b-b9ed3c211703","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":97,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"ade685e0-df06-4aea-9382-d4dcf9284e95","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":97,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"68093d2e-913a-4e63-a277-2fff91100aa1","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":97,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"29c09cef-5ab9-4ec9-a2c3-3c594991f2ad","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":97,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"0206887f-40bc-43c7-a591-e880bf7f40cb","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":97,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"9f7a3c2c-ae61-4b9f-9a2a-7ccd9db58053","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":97,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"caf7b8ec-fbd1-49e3-befe-49b1b4ec72b1","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":97,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"513e46b0-014f-4a87-b670-11235b99310f","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":97,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"e48853d1-63e2-4798-bc87-e151e6ae69f5","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":97,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"6a8f16c6-74e1-48f9-8990-92cdc52be9db","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":97,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"4f0a21a6-b21d-4b88-bfdf-e56689b61e82","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":97,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"cf8e3d0b-1d09-4705-9f2f-4c8db7e5cfaa","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":97,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"af5fcbad-bab7-4056-8178-2c3f7c6df877","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":97,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"c79591b6-1d5c-4d79-9dcb-d62f091ec2fa","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":97,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"a2f072b4-fe92-4d81-9fe0-1bb8d8f9ff01","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":97,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"2e022b0b-b63f-4fac-a0a4-648bb68fba98","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":97,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"cb7ed356-283b-48ab-a711-2431d0b0cc95","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":97,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"39515d67-7a20-490b-a87c-d4f3d3997aca","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":97,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"8eaa5863-b9b8-459a-9684-6dd2105cee72","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":97,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"32b15b48-ef04-459f-89ed-e3771149f260","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":97,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"0ce01c8a-b890-47b4-a84f-a7b7f08fc15b","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":97,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"a4a2fe54-c2ec-411a-8c19-9f1f8130ff6e","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":97,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"2691bb1b-7625-4e2e-9a6b-080365032319","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":97,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"d1928192-179e-4b96-a892-1ac75893d7f1","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":97,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"74e69566-bce0-45ca-8ed3-f173c29d0f0d","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":97,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"c68fa1fa-d7b4-44f7-9ccd-1425f5383e8a","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":97,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"c2cea3ee-f635-4000-8eda-53d4165de91b","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":97,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"66d3fd2c-ea5d-48a2-a0eb-8381faf06ca9","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":97,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"6fb2281f-802f-477a-a507-90ba27124673","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":97,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"e35dbf01-3439-474c-bb25-c250a013c5b2","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":97,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"fcb0ed3d-8b2d-449f-a125-91022c736d6b","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":97,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"35fc92d7-6abe-4ec0-b28b-c71e1c81588e","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":97,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"242bbc65-cf8c-4aad-82a2-adbefb1f28a3","block_type":"box","text":"Call Rights.","page_number":97,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"9be43b42-f265-4ed3-bd98-fb30a3cf3606","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":97,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"f84359b2-ac19-4390-8bf8-c28c834d915f","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":97,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"56143f2a-38ac-4b5c-bc16-6d6647852205","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":97,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"b25c45d5-be0f-4ed3-9125-80e19a3d27e0","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":97,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"a6d2f5c1-59e5-4386-a47c-647131bf9ed4","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":97,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"1c4f181b-9a19-4953-85ee-912af99a75f3","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":97,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"3e7740e9-8340-4bc7-a88f-eaafc11f68b0","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":97,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"14867620-a6ca-4f43-aae3-1a23e4369b69","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":97,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"7fb097d4-80e9-40a6-8f8d-b21416b22f5a","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":97,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"fa603ed2-980a-4cb8-b2b0-d95618f5205b","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":97,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"e0838900-b177-428f-8e7b-60b0d15814ed","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":97,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"6dcd0639-c54c-4135-bd39-0d8346ae6147","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":97,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"19c3c1cc-8914-47b0-a463-5f18b86bfaf7","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":97,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"ab179319-3f05-459f-b05c-3091f4438de0","block_type":"box","text":"II-61","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a1497fb-2441-4c63-820a-ed95345af593","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7def46f7-c925-4840-91f7-b33ce8e7a855","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":98,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"54039696-1426-465f-83eb-9cce2e4f2ff3","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":98,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"6e27f462-76a1-45df-825f-b47337d70c74","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":98,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"aec91463-3d02-48ab-b0af-48647f40719f","block_type":"box","text":"i.e.","page_number":98,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"e505d3bc-e256-4431-9b1d-5519300f8a64","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":98,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"94409e94-15a4-45d7-b738-916213095611","block_type":"box","text":"rates).","page_number":98,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"d7ffcbc3-1b13-47dc-90e7-0c441d62b170","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":98,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"c229e75f-880d-4587-b4dd-aae61964ed87","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":98,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"741c424a-0c8e-4455-8b7e-ade82239222d","block_type":"box","text":"e.g.","page_number":98,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"a0b5ca92-9fb3-496f-abfe-e76fe36aa937","block_type":"box","text":", an exchange of fixed rate payments for","page_number":98,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"abe2c60c-b2de-455e-85e3-6592de0173df","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":98,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"a8f47ff3-2e2d-412c-a5f6-bffc7ff5414e","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":98,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"093bf9a8-651e-402e-b873-15bb4e4cb673","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":98,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"fa28fd1e-f974-4c4c-a1ab-a55e7e816ef8","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":98,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"0bc0e25b-4f0d-46c9-9a6f-aa67dd99e217","block_type":"box","text":"with the same attributes as the swap (","page_number":98,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"a3974422-92a5-4d9b-8828-edf3256c7483","block_type":"box","text":"e.g.","page_number":98,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"f74083f1-ef06-4157-9d95-db0b343a7d76","block_type":"box","text":", coupon, maturity, call feature).","page_number":98,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"f7200848-c1ca-433d-b75d-caac264df1d8","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":98,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"26089c70-728b-45ea-ab83-d79c7f615953","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":98,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"5f2f6c2b-b995-4b9f-8f63-5e7f1746f941","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":98,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"7b8b6e43-f677-4ffe-951f-274aa82f88e2","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":98,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"77f4d4f4-d98b-4a68-971a-9b99f4818e45","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":98,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"698599d2-8c6d-4419-9a7e-b4492d8856f7","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":98,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"c3b561ef-e4c1-4415-b3bd-d17a1b4d6fb6","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":98,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"b32008ac-cd51-47cb-ab85-54317b2467d0","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":98,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"a8cef01a-cee1-4d3f-8a35-cf25054afd29","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":98,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"7d582146-080d-4c56-af1f-fc83b1f8fcc3","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":98,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"e11f79b6-ae72-4b91-b30a-07fe80703910","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":98,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"ae5666a2-f066-48a2-8304-ac30c0e844df","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":98,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"2b98ee9e-c638-4b5b-8c65-9da583824402","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":98,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"2ceca98d-f475-4032-a54f-33db48394fec","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":98,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"76e239cf-194c-40b1-a48b-fcaa9c268a55","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":98,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"d01d5f94-2bb8-43d0-9003-7599036b6660","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":98,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"1de01ba6-0a21-494f-9e0f-fee67b13736a","block_type":"box","text":"Insured Municipal Bonds.","page_number":98,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"78c89973-e33f-4f42-a4fe-9e6b0916cf1d","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":98,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"e33d4617-288d-418f-963f-8d679005c203","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":98,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"7c006d3d-3e74-45dc-8572-eecd99853e13","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":98,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"445d7e9e-58c1-48fb-94e4-39d32ad5496a","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":98,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"da038f8c-ca8e-460c-9b2d-39b25adc0850","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":98,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"a51b1009-df06-4348-9456-199e7e5d7529","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":98,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"c9af97f9-af6b-4728-9f40-7d5532595e90","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":98,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"372c050a-0c44-430f-b4be-d7aacd3cb99d","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":98,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"98380c03-264d-42ad-8ac3-e2d48ecc0b5e","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":98,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"d71f7af4-20d1-4906-8e32-e00c49b1de70","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":98,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"d895b6e3-f662-4eb7-bdd3-856389d12b3c","block_type":"box","text":"bond could drop.","page_number":98,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"75da409c-fa3f-4bf1-b355-d79f260f3de2","block_type":"box","text":"Build America Bonds.","page_number":98,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"0c1996d0-80ca-42cc-aa9b-4ccfc2b0cfbf","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":98,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"066ceb45-c2f8-42a3-9188-72549c35ba6e","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":98,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"d74bf6af-c800-45ab-896e-3b7db16358da","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":98,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"9286b049-c498-4213-9533-e21d850367b7","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":98,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"a293097d-0f69-498c-966e-e25f581de28d","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":98,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"bf961a7a-8b69-475d-8d07-9083d45d3c47","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":98,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"d154f70b-448e-4a85-991e-08b9dcb01a27","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":98,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"3d4f80f9-78c2-4e68-85ad-8132c939d8bd","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":98,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"b7a54d03-2538-4bba-8087-254eadbf7b45","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":98,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"0f223a2a-cdec-4591-b815-d83ac5c114dc","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":98,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"901e9edf-70bc-474b-a9c7-019129247b9d","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":98,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"5076efa2-45c0-4584-870d-1aa2eec75fa3","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":98,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"cf60f26a-e37a-41e1-842b-49244c536d87","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":98,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"c866a555-58f1-4c08-9d83-b25a1eb8fea4","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":98,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"44bb7c84-5a49-4567-8a2c-c0bac520c775","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":98,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"60ccfdbf-191a-4b1a-87e1-ac960538807f","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":98,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"4a023e57-57b0-4de4-aa50-cfb4f405ad1d","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":98,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"72aac8de-2ec4-41e5-8d69-0f32a735d6e2","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":98,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"51b1be07-44cd-4616-b5b2-b421f6ee407f","block_type":"box","text":"II-62","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b01e3e8e-73cc-4e11-a906-b6d8e930548c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f563ceb4-6fac-4187-a157-908bc5bc2be5","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":99,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"0820685e-480f-41fc-be11-fac27181c78e","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":99,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"ffc78c03-5265-423f-976e-6acf341007f7","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":99,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"01ac6804-3866-43bb-ab00-414543da67e4","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":99,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"a648cb88-69d7-4919-aca1-4c42f950746b","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":99,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"d2ade6bb-e6b7-4d74-951d-d538d504ff74","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":99,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"950503a9-5073-4973-a6d3-662f9fd9d501","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":99,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"630583ec-c6d4-497d-9648-37d9bf9abf8d","block_type":"box","text":"their face value to the sponsor (","page_number":99,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"c410aba2-bf7c-41b6-be38-d02919969917","block_type":"box","text":"e.g.","page_number":99,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"f706c404-c199-48aa-8804-5d7dcdbf15f3","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":99,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"8fa2e0d5-dda5-48e9-8362-c22cdacf6396","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":99,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"a6903bc9-0fb8-4de9-815e-5cbc2a38e5ad","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":99,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"a803af5b-e9e4-4603-ace0-41df875df5e8","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":99,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"f7d2604e-2fa4-40bc-9985-cdbef59fdeeb","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":99,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"dae3b3f4-5b1d-4b05-b59a-a3e0f8c469b1","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":99,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"a6cd004d-e1d6-4570-a088-5e66504999a5","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":99,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"ad8367ac-72c2-4880-8714-b8020b7741ca","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":99,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"690ece97-f137-41bd-8881-f51b09c21d19","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":99,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"3867f8d3-7e94-4fc1-a83b-920adde10021","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":99,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"5154b2cd-6fba-4067-9ba3-91aac65de0b0","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":99,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"4c65a909-c9e4-447f-bee4-122ab4fd1157","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":99,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"7f0f204a-91f6-43e1-a80a-27f395417edb","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":99,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"31af426c-114b-4287-adee-75b92eaf7327","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":99,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"eb6965ef-b1d4-4ffc-a408-abcffb7d0b15","block_type":"box","text":"such opinions.","page_number":99,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"7edb7ffe-e582-4f27-96fb-24902a1a30e9","block_type":"box","text":"Operational and Technology Risks.","page_number":99,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"9ce0756f-8e16-4813-93f2-e31df1696a0a","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":99,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"5dc68b1a-103e-4bc5-b5ee-093c9854debd","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":99,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"c09d8eac-d63f-42f4-ad2b-1a49d3fb1d3b","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":99,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"8bf9b4dd-9100-4d14-9cc1-9654fc39b58d","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":99,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"c73c2e55-72ac-4469-8098-062d7062e9b0","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":99,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"0a427600-8992-471a-a3be-bce9677de5fb","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":99,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"7e112d13-72a8-454a-8b75-8336a2a27d8a","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":99,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"38733953-943b-42f2-9817-26fadc1bb335","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":99,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"28dbb6c6-e6f9-4c29-a719-b92fe78dcf0a","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":99,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"67208687-6628-4a31-93c8-78c92ae2ebe6","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":99,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"7873c398-0cd5-49a2-82b6-250491960491","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":99,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"0cc3ca19-53ef-4268-a45b-87800cd7f951","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":99,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"6b46589e-748f-4124-9c19-143d13e9154f","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":99,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"7db61510-276f-4664-b4d3-e89284cbae0b","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":99,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"d50b041d-0aa8-467e-a720-412c750a06f8","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":99,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"62ba2202-c17d-441c-ae9d-4734edec9e96","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":99,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"8912c2f5-7362-42aa-9c6b-4d83f3bf178f","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":99,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"612db0aa-8f12-42f6-b58d-731ed588803d","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":99,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"967e653a-388b-40b7-9f0b-fabd11fe005f","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":99,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"fa32c137-2b35-4724-935d-4cfdee829663","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":99,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"89d3a793-b8b4-49da-b2af-b71d9776c056","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":99,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"49fae028-cbc8-4c97-b201-d959fa67cf84","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":99,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"be7f5702-7da2-4726-ae3e-fe7357d0456b","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":99,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"cb29fd8e-3841-4b53-a254-2224e9922fd1","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":99,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"32e1dad4-010f-4a15-80a3-594101c9987c","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":99,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"2da42b2b-cb59-4084-ad9d-e67ecc78b5e2","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":99,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"b83148d3-46d6-4c0c-9ab6-70a30f7faaca","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":99,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"3f1a5da4-dbd3-4604-8aa5-d3b585a6d629","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":99,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"27c3c568-fc7c-4238-a531-f6b0e2775b93","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":99,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"5ff18f29-e9dd-4979-8613-c1954286b2d3","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":99,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"b625f135-6c8f-45ad-b634-58200b935524","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":99,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"12a83d16-8fec-468f-93ed-e81163af0df5","block_type":"box","text":"infrastructure assets.","page_number":99,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"be61971f-288d-4b15-8757-d1d4d609a131","block_type":"box","text":"II-63","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c923550-359b-4c42-a2af-0f601af04317","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e70451c3-4727-4ed6-9642-7a783386b51e","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":100,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"13dea6af-5aca-423e-9079-26d33332d0b4","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":100,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"29508dec-24f2-4916-ae5a-728c620f12d1","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":100,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"f6862a94-8d2b-4bc5-abef-f706d51ca1d3","block_type":"box","text":"or services.","page_number":100,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"e2bc8a69-a212-4ef3-bee3-2f8ddad9d1d1","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":100,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"e5e22be9-c1a7-485a-be34-375bc5142490","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":100,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"3f185262-4c4f-4619-9901-932da5704cb4","block_type":"box","text":"other third-party AI technology applications and users.","page_number":100,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"7af585b9-189c-4b06-a34f-49330b9ebdda","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":100,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"de2b8e80-f09a-40a4-a0f5-756a61397f65","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":100,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"63cbcb31-96ed-4d55-94cd-0671bb28ed2d","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":100,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"3e8b7f1a-f81e-4777-b1ab-10be569e5fbd","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":100,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"23fc2d13-b75d-49b2-acb4-08b8a14c5f56","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":100,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"e1a9bbd0-0d3e-498d-ab23-fad0c1ac36d4","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":100,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"2c2da324-741b-4661-8955-7343bdb8bc16","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":100,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"edb607e3-d873-404f-9f85-3e66d3faa4ee","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":100,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"a2f497cc-2c58-4d0b-a28e-a71ab7f9943a","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":100,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"b4007e93-ea91-4946-9def-54d0886686a4","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":100,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"e1057c5e-5f6f-438e-9b37-2422a6c3a9e2","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":100,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"2aba4d17-2445-4a39-a969-a15eb62d8c8e","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":100,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"4485dd54-30fb-4ba8-8127-a56cbf6c76fc","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":100,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"2ff5b943-4247-4b29-9ded-4ccfb67f03b7","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":100,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"ccebc784-200d-4414-8b9f-0aa1dc8f3f1a","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":100,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"8f6facb3-b2da-499a-b7b3-c7d455424712","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":100,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"7b1d8d4a-c927-44d6-90e1-57c68a1406b0","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":100,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"d64d02e0-9b7f-4e36-beb7-3fa238b569ab","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":100,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"a4ea0116-1109-4809-89c6-fd7c8ca4fb98","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":100,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"25e57fd7-7bb2-4bf6-b4ee-b9e7b5724c11","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":100,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"0dae9677-ebff-4a49-b2cd-6ff4a4058b2c","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":100,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"c2cb2bd6-8723-4a81-b4e9-61ddc31b32ef","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":100,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"e38f8167-5912-482d-961a-041c8901d3f1","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":100,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"d762674f-59c1-4ec2-ad30-3bd236ea951b","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":100,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"fc93a4a9-58c1-470b-b80f-81f811361adb","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":100,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"acd42657-6def-4797-ab8f-880529131120","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":100,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"51e671ec-0e80-42c2-bc65-ca7bb419b34d","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":100,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"2ac71914-3111-4900-ac6b-9cda05d6bc4c","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":100,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"95278cf6-f025-4180-8d03-1acccaff2218","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":100,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"69518b97-0981-4372-a88b-b3db12a54260","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":100,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"da4595dd-28c1-41e6-99fc-2e8be5cde37e","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":100,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"9d1d1834-99ed-4f83-a2d1-b6b8a6328dee","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":100,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"1f73cf8b-b456-4478-80b8-7ef15e8a23b5","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":100,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"5a1aec26-906b-4589-b616-20ff492afdb0","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":100,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"f55274b8-db2a-441d-8d63-49b9f3e564e8","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":100,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"3a0e4cda-96f4-4ed7-99e4-ad1e0361be56","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":100,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"b7d6da61-68f8-4057-b602-c92e4bf4c48b","block_type":"box","text":"resources to monitor and implement required changes.","page_number":100,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"01d4c57a-351d-4980-9369-8d2d1798afac","block_type":"box","text":"Participation Notes.","page_number":100,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"1ac681ae-5b70-44c7-ae93-b0027bc6a204","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":100,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"b0ef38f0-c8a2-42c3-b4ab-1b206afbaf2d","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":100,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"89ddc7e6-3e03-41bf-9619-da6724e42447","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":100,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"f07f5b82-014f-45cd-9098-261e5deca4db","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":100,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"ac088d87-06b1-4f7d-ad9f-88566e23b41d","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":100,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"f03f0c64-b6aa-4ece-aa06-a4fa6633f43e","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":100,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"cd8ca89a-2b86-479a-bc5e-d23255793a12","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":100,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"52c0605b-d85c-48db-9771-0b82a10fd601","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":100,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"f2ef432e-8032-43be-a0bf-ef45f61a0521","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":100,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"fe5ca1a0-b95b-4f59-b9ad-084e51776d92","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":100,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"e707da3d-6803-45d2-bafb-54e0b2bc37cf","block_type":"box","text":"II-64","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"be3f7956-2f5f-466b-96cd-56c393c10b27","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a06bfd66-0cf0-4e28-b40d-0062b9d3f3c1","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":101,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"4469ac2c-865f-4240-8019-a668480d977c","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":101,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"31d0c185-2c77-4592-b3d4-3398f97e085b","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":101,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"ccf2ab3c-d825-4588-9ce3-1211e44155b0","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":101,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"12274a37-5078-47b8-9b72-f792fcbda9cc","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":101,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"78f53532-3374-4c35-a00a-05d60b1487f3","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":101,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"e178c4cd-578c-4696-90dd-2c0dec7ead96","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":101,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"1738a7b1-a8f3-4df3-9659-93deda8e056f","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":101,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"4dd71ede-dd3a-4ebc-81ec-89090ea4d506","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":101,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"0e147d2d-4332-454b-9d7f-bee5608dc59a","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":101,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"c178f7a4-d112-4629-b281-e437e2b60e10","block_type":"box","text":"Portfolio Turnover Rates.","page_number":101,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"00a94038-c00e-4ca7-9aca-58207a8151b7","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":101,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"7b44d0cb-e050-4c94-b019-0ef685834046","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":101,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"ad75620a-f977-4991-b5b1-efcd62787a5b","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":101,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"b40f681e-16ca-4985-8887-c9349e39585b","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":101,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"d0f1c60c-e911-49af-8bab-d741bad0860d","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":101,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"9eaf6918-bc73-4401-82a4-93844dedf862","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":101,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"3e8027e9-cadc-4cbb-926b-78a538c99d6b","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":101,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"fd40dc74-7d7d-405e-b351-e242a4bb0e25","block_type":"box","text":"i.e.","page_number":101,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"98a5410f-747b-497c-ad5a-216197e4b589","block_type":"box","text":", 100% or more) may result in","page_number":101,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"9bb968f8-353d-494a-bd4b-66f5eebe3f6f","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":101,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"6d29627b-bbf7-4b5b-914d-5b3ac29fd962","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":101,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"000cdd54-48a3-4fc1-b48f-f464fec9d336","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":101,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"468dc58a-167f-44ea-bff0-90837d027ce5","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":101,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"3abff9ad-ab89-4785-8a10-b696080991a8","block_type":"box","text":"Preferred Stock.","page_number":101,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"23a547dc-26b4-470c-8ad4-74d66ddb6116","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":101,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"b90c25ef-35cb-417f-b258-928f56b80b98","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":101,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"1d2ffdb8-50b9-4130-ad3b-b2a85bd0d19f","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":101,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"8bd9e468-36cc-4010-8582-b383bbb30ece","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":101,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"3e8d62d9-703e-4f78-8609-47008e8cf4be","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":101,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"3380b800-d7ba-4f53-b45f-d2e38e6cc13f","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":101,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"9e42eb67-b4e7-450b-8968-f1efa21d0367","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":101,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"4af48bc8-b249-4bb1-bbdf-e798f08c48e1","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":101,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"83a8f319-ad28-4445-a688-4f2d1251fc19","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":101,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"1b0b5bff-1b3b-4d0f-bd9e-2aac34d1d90d","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":101,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"4d588df6-86ab-4e50-8af8-06e83290bfde","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":101,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"8636a842-3eea-419b-b10c-e94a4f861f89","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":101,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"73bc13a5-59bc-4326-90e7-fe8f5a970121","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":101,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"edf4282e-c480-44ef-b2a2-42c144f8a534","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":101,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"949aa3bc-b5ea-4d3c-8b74-b9887dd927ea","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":101,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"d2bf933d-d7d6-45d3-b55d-f3d9d316c37a","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":101,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"daa254df-9ea0-4f21-b964-6f754fc73c4f","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":101,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"0b9e839f-74fa-4c98-8b00-17b7f4b4cb99","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":101,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"4e534591-ddbf-4949-b0a3-aee16175fa7e","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":101,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"745952ed-f4ad-430a-801a-19173a262322","block_type":"box","text":"Trust Preferred Securities.","page_number":101,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"75eb33ab-4792-43ff-81e3-da0edbe712eb","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":101,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"43e8f671-af38-4bbe-a264-5f15a094bf8b","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":101,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"216990a4-d200-4cdb-b7f9-bb8090c9ad39","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":101,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"b8ae8f7f-c06b-4ece-a672-baacc2c48d6b","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":101,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"c04b4e15-cb50-4218-81f5-e3fc519d1c6f","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":101,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"aeeb2cae-bba3-4871-b2e2-6b8176fea99a","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":101,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"3fdf444d-e200-429e-b27b-5a92964bf4ee","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":101,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"d147183b-bac1-4d04-a38d-8fbfe43b2014","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":101,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"934a0237-bbf5-42eb-8146-3651b71ee505","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":101,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"4818b52c-6376-4077-91f8-55860f748538","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":101,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"9efe001b-262e-4ec0-bf12-4470eb05150a","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":101,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"db1762d8-6259-47d6-8b9c-06acc3558526","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":101,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"353600c7-7f6a-4aea-921b-5d44dfbc44a5","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":101,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"5e266459-2810-49d9-a46a-812c4aac8aa0","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":101,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"8970f284-5e59-486f-a9ae-eaae8f36e4ce","block_type":"box","text":"®","page_number":101,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"dc0a9416-c3c8-465c-ab8a-39323b5154c7","block_type":"box","text":"”); monthly","page_number":101,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"46a0a4bd-2cdf-489b-adb4-c258d7d7f1e9","block_type":"box","text":"income preferred securities (“MIPS","page_number":101,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"caaf21cc-3d33-4a4e-8582-4695b9cdeb80","block_type":"box","text":"®","page_number":101,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"0d623173-f420-45b3-8ba1-493871bb4a09","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":101,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"4e4347eb-ecfb-4115-95db-284a4e35b992","block_type":"box","text":"®","page_number":101,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"297414a1-d86f-440a-8fed-80e97c4a3967","block_type":"box","text":"” ); quarterly income debt securities","page_number":101,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"de4c8e9b-5743-4d13-a085-7c9b28e2ca40","block_type":"box","text":"II-65","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6d6f5161-a680-4428-bc9b-98f2bcf23ed6","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fcc5c74f-b791-4e3c-9d08-9de75286dc46","block_type":"box","text":"(“QUIDS","page_number":102,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"3698e958-3e74-4ef9-a7bd-85b17805b375","block_type":"box","text":"®","page_number":102,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"95ef4698-5387-49ea-aa1e-5faeb904d0ba","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":102,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"ed512d51-cec3-4dc9-993d-bf1d053c57f0","block_type":"box","text":"SM","page_number":102,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"5394f262-0515-4b8c-ad33-e91fee7b6677","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":102,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"fc1954aa-3b7b-4b3e-9839-efcd0fd88830","block_type":"box","text":"®","page_number":102,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"0e1b274b-7675-44aa-a7ca-adb6a4215889","block_type":"box","text":"”); public income","page_number":102,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"c9fbf18d-79de-4b46-8f57-747442d7154e","block_type":"box","text":"notes (“PINES","page_number":102,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"2aaa64a3-1791-4981-9724-be7ae48c6bc1","block_type":"box","text":"®","page_number":102,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"6f96953b-aff5-4f7e-a331-b2bf6404b07b","block_type":"box","text":"”); and other trust preferred securities.","page_number":102,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"4aa97066-ba0c-40a0-bf40-760566f3ee0d","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":102,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"cb04d6e1-daaf-42dc-a8e3-0d21b2c8d904","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":102,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"dc9ea9a3-6139-4322-97a1-e8923a6f7e72","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":102,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"897b660f-a027-46b2-95d1-254b2c1beef8","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":102,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"c6aa80d5-8c5e-4e81-8ecd-a8754775c69f","block_type":"box","text":"regard to whether all payments have been paid.","page_number":102,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"88c329dd-b56c-4243-9464-069db43a4633","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":102,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"f02965c2-dc12-4f47-a3b1-5de14ae76a30","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":102,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"e6671958-7c5a-479b-9436-c9538c78fe43","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":102,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"e04eb92a-acde-4bc7-88ff-b09f4709d4bc","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":102,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"3399d101-d21d-4a05-9389-62ff00c7639d","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":102,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"5791287b-f551-4961-8e0f-fce6a50d5c19","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":102,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"15e20711-de0d-47a3-a505-ec9af76470cf","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":102,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"1d2c36c8-ba08-4a8a-a17c-8358817d1098","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":102,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"a2f552b9-8b68-421e-86b5-2b76e94c91d6","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":102,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"3ae6f03e-e18a-46cb-ab73-b76820f856e5","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":102,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"4d416ea3-7ddf-4426-b24a-218dde9b2d85","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":102,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"cc1032c8-f8ac-4eab-984d-787161f8dc79","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":102,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"42847cbf-83e2-4890-8972-6c754ac85897","block_type":"box","text":"debt securities.","page_number":102,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"aa230930-f176-4729-9c20-cdd76a1ca68f","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":102,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"f051f2aa-311b-49e2-8697-ab9fb8271005","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":102,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"4199622f-f528-44ee-8620-9a9580fa3690","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":102,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"e1aa9dd9-779f-4c06-b424-4a5c3168efcb","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":102,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"c61b1d7b-f8bc-42bd-bbf9-ed9831926cd4","block_type":"box","text":"geographic areas or in specific property types,","page_number":102,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"38dd1924-4e5f-4049-9f01-a9ab4683ddfe","block_type":"box","text":"i.e.","page_number":102,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"0b0d23e5-9889-437f-8048-98f1c37bd03b","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":102,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"42d3ba6e-f242-4fcd-ba01-daa597a52f1f","block_type":"box","text":"buildings.","page_number":102,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"175e4f47-3af4-4837-8040-998d8bcaaf56","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":102,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"f61cae09-29d8-4845-9345-b1384f9b1aca","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":102,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"ff12b6fa-770f-4380-82a3-6c92e91c3a88","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":102,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"aae1fb33-3f75-4761-be7e-c51772c29f11","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":102,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"99513f96-f8ec-4050-8a8f-d70d4b48d2e9","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":102,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"e9d517b0-ebb6-429f-bba8-1f9cef03c0c5","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":102,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"fe0aefe5-4e91-488e-bf40-6ec168304e4f","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":102,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"46f6b0f6-b027-44b7-8092-b53f0fe16a26","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":102,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"57e88ec2-ee74-45b2-b687-91af2eb15a33","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":102,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"cb8ca0e2-ef92-41cf-9ae0-49114ca17569","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":102,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"3159c393-3b05-4f83-a1df-c116ff9577e9","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":102,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"b5f5c381-7efe-43b4-9015-4bf0bd3ce5aa","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":102,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"7d71b740-912e-4910-bf3c-5092d60fa79f","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":102,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"1241917c-c03c-41d9-966b-eb3ac7af25e4","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":102,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"5d472c97-9620-425b-8d31-ab4adb73563b","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":102,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"b17788a2-d7eb-4b7c-b5b6-9a643a17889a","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":102,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"15b2a61a-4294-4f7b-b417-6f29c9b03775","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":102,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"e9ed76c4-e341-43ec-800d-fa616ca60034","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":102,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"9b313993-59a3-4e2f-96bb-08ee80edd646","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":102,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"4764cd16-d131-4c79-ac46-7b26a1639257","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":102,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"0fedeb8b-04e8-4173-9153-0650334baf02","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":102,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"8cb3eec2-1b3c-4cd8-8075-cd9dfc228072","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":102,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"8d1f32a9-0c1a-406c-a76a-b8e92496ee14","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":102,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"fb5d77cb-5f52-46a3-8b52-67a48c0f91c4","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":102,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"774d9358-908c-4e41-90bb-69380db8d4b5","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":102,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"93278f0a-0861-49aa-b903-9b39ef38a4df","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":102,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"06963b86-16a8-42bf-8a68-cb602adcf2a8","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":102,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"497e2e73-03c1-4b66-bb36-441be4352ce7","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":102,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"5241da45-2cb4-4948-868e-31081121ddf8","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":102,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"b075348f-e0b6-4e17-b6fe-61d32921ce01","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":102,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"84909624-6669-4441-9e71-edff86b24d98","block_type":"box","text":"II-66","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"949d648f-ec8d-4032-bfc4-e3afb5f8cc4a","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b3eb5c70-2f65-4dca-b989-6b014f2f8a19","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"35b8e078-4fb8-4398-9c41-b2be407d0370","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":103,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"8508e7a7-2ac6-4adb-ad0e-ed54f2ef121e","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":103,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"03ffa37e-c88a-495d-afb1-0d2f0be0356c","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":103,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"17c92b31-7a71-4061-9677-829fc40df5ff","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":103,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"d6551a73-47af-4069-8d76-a881491b776f","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":103,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"943043b4-d1db-4bd0-b9b1-2a6f7ba5df92","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":103,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"f9a9f10a-2c35-4d0d-9684-e8e99ef05948","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":103,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"37170318-2cc7-492e-a292-2775dac4a7bd","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":103,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"b0219674-76a0-42b3-8c44-4cac2626ea36","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":103,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"f81ca906-4f3e-47f3-acbf-bd3eeb95614f","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":103,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"6d2f0be1-c3df-4ce5-8a45-93bd308fccf4","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":103,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"3f850bb2-bb98-44fa-8950-02904f027a9d","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":103,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"488c6b3b-abd5-4d13-b740-4cfa01545c14","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":103,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"6f3f8a2f-f8ed-42cf-a7e3-2166b14f8938","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":103,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"679caf93-4068-4951-9494-bbc24abf2130","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":103,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"cd85fcbf-2e6b-4a76-8f34-5f9c0f8f15f1","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":103,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"be837626-ba68-4547-a702-f996e1c9a19b","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":103,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"40756451-0073-40fe-a65a-eb7e2e2f0fa6","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":103,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"644da1a9-40e2-49f3-8a2c-09a0d9d7d41d","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":103,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"13fdd5e5-537e-4161-b16f-10184190adf3","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":103,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"39614d82-772b-43bc-bbeb-9e52cb1a87cc","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":103,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"9fe552d1-8f44-449f-8ff4-8537510d9819","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":103,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"d898aee7-d1cf-4349-9a18-a37462cc64ce","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":103,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"5642e2ad-c007-4808-b389-e8eba027f829","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":103,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"db175bfa-fdad-4fb9-aa8c-f71b74b59652","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":103,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"40f7b04c-5074-412f-8bbb-8fe1e090b61a","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":103,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"f7c00c3a-41bf-4951-9054-c386824bb5b2","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":103,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"b3d20e27-4556-4791-a350-67b6b4bc4138","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":103,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"acc65fde-25bc-48f9-b5f8-0f60c12c1859","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":103,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"98c7b72c-2fcc-487d-8b1a-ceff2382ed00","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":103,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"3c4128d9-2b03-4bf8-a49e-493db50296e0","block_type":"box","text":"conditions.","page_number":103,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"4cc64f38-6f9d-4118-b797-4a24e59e5ffd","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":103,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"e53c418b-54c7-4816-9251-6aabbf4e2e34","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":103,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"bd2f3479-955f-4098-97a5-aaecb3165ce2","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":103,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"faee15be-29fd-4900-8358-47b95aa28730","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":103,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"b740b16a-0f42-4f15-b955-ff56a27c9d5a","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":103,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"300db337-53ab-420a-89ba-a58efbd3e922","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":103,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"5e0cc661-8933-46b5-b17f-a1746ebe07da","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":103,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"ac50061f-a8a1-40f3-ae9e-52c27c5fb3f6","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":103,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"33b1376f-204e-4be6-9c04-f366e355e589","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":103,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"5b5e9a47-f30f-4b9f-88d4-1f3da34d0fcc","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":103,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"3be48c56-6026-4eb5-8806-6492371e16f4","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":103,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"0a42557c-f07b-4185-acaa-c43f96c6f45f","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":103,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"7d212a90-8cdc-4a28-8baa-85231bf30b0b","block_type":"box","text":"affected by such events.","page_number":103,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"bfdc57bf-af37-46a2-917b-4d58185fead7","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":103,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"05fd5695-a2b4-4b80-b096-6b6afbd33b5f","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":103,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"ddeceeaa-d68c-4cba-b6f4-1c1d1e2e8c31","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":103,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"1dce1177-b732-458c-847e-1e62b822e48d","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":103,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"ad1e484f-ca08-45b1-ac89-50af21dc7270","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":103,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"adae6cb9-d91e-4a35-a56c-f92c64d3c5a9","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":103,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"9671d6a9-b693-4ff9-8990-109229e8bd69","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":103,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"91c79dee-8d48-4104-b845-a402bdac164a","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":103,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"938e8bdb-86ac-4702-8819-308232dc0c49","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":103,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"bc68bd09-82d4-4d38-a88e-04b539a5ea8c","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":103,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"d60d4d26-c3be-4a9c-81c5-7ed30e42e5af","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":103,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"58313d06-36e7-4a63-9c0c-18aa97a7760a","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":103,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"b081f199-b9a0-4a7d-a61f-d8f1fb827666","block_type":"box","text":"II-67","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ba607f2-a32c-4a73-93d0-35acd6998deb","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5c29ac44-b586-48b2-bcf2-462d9ee26096","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":104,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"ac699906-fca8-4441-9eb4-f6d52846e1f4","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":104,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"76a6ba37-22a7-4bf0-9a38-7f9e10cf8c44","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":104,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"ef75a1d2-016d-4d38-afca-b66a860c709d","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":104,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"2752c95f-40d4-4f57-99dd-9dd402f252cc","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":104,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"2ee7ac94-f347-42e1-86dc-1a0801fe4e1a","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":104,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"33627b7f-f008-41e4-832d-a2e2caf99b4e","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":104,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"869335b3-21c2-4667-a4d1-78744e639f25","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":104,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"a2880758-8605-48c5-b137-1f2235cee7b1","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":104,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"083a4797-de2e-42d6-a5f9-eb1977461b48","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":104,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"179ceab8-e10c-4d56-99ee-c74556abe3dd","block_type":"box","text":"investments.","page_number":104,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"6d122b30-d7f0-4a43-8708-e3383ed177ec","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":104,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"418f31a0-3bf7-405d-a3a4-e5050cd6d68f","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":104,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"0d742b70-af96-4237-9122-fd5dbcb66ac3","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":104,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"807bdc80-5d33-48d0-8b58-87850aa40195","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":104,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"8cbb04b6-7de8-4b7a-b267-78f6ef80386a","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":104,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"5302dce1-d87a-43f9-b112-c5dc232675bf","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":104,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"cec022b2-61c3-4289-8d57-7a01ec092e01","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":104,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"d134835f-73d6-40b9-92b2-a01ad05591fb","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":104,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"6b268813-d72c-4497-abdd-189ef198cbe8","block_type":"box","text":"Legal and Regulatory Risks.","page_number":104,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"3c4c6d81-71ea-4ded-9421-7c4e7dea49de","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":104,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"98435b86-8a95-419d-af8c-84f141587cee","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":104,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"3ed5c75e-2fdc-430b-9a55-1c73797304b4","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":104,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"9a23c8ff-8949-4ae1-968a-24dbe4a4e7ac","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":104,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"41a0efd2-4c15-4b45-aaec-6a4d17203d96","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":104,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"d6b6a353-c71c-4ea0-be64-262057fa4da1","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":104,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"20f42f1f-1de3-4270-9000-e88131e15569","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":104,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"6b51ff0c-bb2c-4dcc-8ad2-d587826056c8","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":104,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"9623c2f7-7c62-42b6-9b28-20bc8dde36ef","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":104,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"59b3cff4-2342-45e2-80e6-a3e4f2ee01fb","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":104,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"129e4c0a-0b29-48a7-897f-4465d6b8db56","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":104,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"47383bc1-7745-484d-b03e-a6f7a9ac8731","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":104,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"b2828335-60cb-4117-8aea-bd8d981b07cc","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":104,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"7618a346-7abb-482d-aa8f-696895d59c95","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":104,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"447491e5-e0e6-4a55-ab9b-248c4f8e8e5c","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":104,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"e9499555-a88f-44b3-b66c-3890775bc14e","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":104,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"96f854c8-afd7-43af-9777-683a27ec8c0c","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":104,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"656948e6-f0e1-4150-86de-03d9ebdbaaa7","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":104,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"4877301b-9d20-46c8-9b44-7354c7ff0c26","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":104,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"fa64f2ff-8059-426d-8b98-ebc393a39b69","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":104,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"c1353727-f665-49b7-b5b3-2289c00ddb96","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":104,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"cff3c3bf-0745-4f5f-99b8-94e7b7d19f58","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":104,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"444deabd-9689-4cab-817c-ea3da1aa5340","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":104,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"a8d13e62-d35a-44d5-af86-63a99639424e","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":104,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"25e4a09f-c3af-4e8a-92ed-f9d251fd726f","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":104,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"94725571-ac6e-4870-8ace-fb30282099a5","block_type":"box","text":"Geographic Risks","page_number":104,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"c30afe66-5d3a-4587-acb8-b761f93a4cd5","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":104,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"0bcacd82-a594-4769-8036-931049c38323","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":104,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"48ff68c3-58d8-416e-bb2c-104d5b6025f1","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":104,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"e159bb88-b3e1-44df-b72b-ae8765d9b464","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":104,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"937e4fa2-1f10-471f-8414-7c13f030e66e","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":104,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"59806be6-2976-4790-a0d5-1b6a8792fc40","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":104,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"01d7373d-a892-42e6-ab25-d1db306ac6fb","block_type":"box","text":"Fund.","page_number":104,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"29faf505-fd97-4061-8027-8244b13e8b21","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":104,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"42aff6c2-ce70-42ea-b1a3-9a47e845b0b1","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":104,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"d4ce8717-7b29-4e37-8796-70b163e5ed49","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":104,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"e1f5b0b0-b790-4f84-875c-d6ac06d28e65","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":104,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"c3988ff4-8659-476c-aa72-a8d02b800eeb","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":104,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"831b3b1d-5417-4ab9-9d74-3e4f41e1d2f0","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":104,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"7877e743-5948-48f9-8155-fc4c1017a4c9","block_type":"box","text":"II-68","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8332b96b-f836-4e51-8a81-e80f5c505523","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b54b951-abb9-4d73-a4e9-37b5e3845ab2","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":105,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"30181274-29f7-425f-b120-bf6620ab6dca","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":105,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"58f4784f-5b73-4ce1-8afd-e6a0d22742c4","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":105,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"b77ff436-90c4-4f0c-863e-949fec67f34a","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":105,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"c9a0a6d3-8887-4392-9dc2-ce32663e9495","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":105,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"bae8fa2f-8e56-4c1c-910b-4434c714939e","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":105,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"95ae2148-d592-45ee-92ac-4586b3db0a64","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":105,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"d2587bb2-0248-4233-acc3-229a84faed2b","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":105,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"b59845cd-ad84-4c76-94af-fac9ef613391","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":105,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"183e5dbe-ef2b-4aaf-8c46-e912a64c17f3","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":105,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"77b49a57-cb26-452e-b820-6cbdc16c0e06","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":105,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"24378b30-3c98-48e9-b8f6-875dfb15de9c","block_type":"box","text":"e.g.","page_number":105,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"2f96eecb-c95c-4534-8598-a3bfa6a66e43","block_type":"box","text":", SOFR for","page_number":105,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"92e7fe5d-d1aa-4796-98ca-80de2eaa708a","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":105,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"7bb17665-4591-4067-ad94-862522010007","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":105,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"ce46934c-69ce-4f60-b750-2c8fbf8b225f","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":105,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"3b3b576b-96ca-45be-bc3d-92b479569ed8","block_type":"box","text":"determined.","page_number":105,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"948a2c10-af74-4723-a9a9-049b0b097f7c","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":105,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"38ce9945-1acc-4d6c-ac51-11ba9123506c","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":105,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"aa0d45a5-2004-4314-a792-4bba852dc888","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":105,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"42827e6b-0cc3-405b-b3bc-e1cd276070fd","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":105,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"7f54d8b3-10f5-44e9-9d36-d9711d9c76e6","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":105,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"189da0b9-2f13-4729-af0d-9435d907dfc9","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":105,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"02ab45a3-180a-45a0-90a8-2513431fa3e4","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":105,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"60169530-3cca-4d2d-b25e-0f7f1e15db4c","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":105,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"3f264415-7834-45ce-8a48-7ab9112712b6","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":105,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"c05e4599-7dc0-403d-a24a-e2b1418c035e","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":105,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"23d019af-959a-4e0f-b8e9-05333464d1f2","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":105,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"a62b72f5-8f40-4209-90ff-d1350365812b","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":105,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"be1f81ff-fe64-43ea-860a-d86c0eccb5f0","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":105,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"8f716b0c-c781-431f-b5d6-4f338d3af0cf","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":105,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"9eda52ff-1db0-47dd-beef-b65bbe91a1c1","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":105,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"552fc55a-ee3e-4178-af34-ed2669471972","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":105,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"d6be59d7-e3d9-41d0-9102-4cda7366f457","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":105,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"71fc846c-04cb-4bc9-96b2-678d0b4ed743","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":105,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"793c10a3-0777-4089-bb5d-2e0c2574e525","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":105,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"5d01695b-53b4-4949-9ed3-2814bd3ea8b5","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":105,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"e38c394e-374d-482e-b736-0179ec028b7f","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":105,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"37d6ced4-0f48-46ba-a30b-9a2d2f5c68ab","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":105,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"c8ee5a09-b1c6-47f2-88bd-b9486ea33a90","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":105,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"d69bf12f-939b-4ce9-9fcf-61296497dc81","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":105,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"c7dd1cc6-558e-4a50-979e-ab29a09bb8a1","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":105,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"ebc2a7e8-c734-4893-9414-00abca3d2327","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":105,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"1f7e72f3-a2ac-4330-867e-e67e60eb1554","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":105,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"2e54e9a6-9713-444e-9ec7-6fa445018ac4","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":105,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"ed6a1f09-bf58-4565-81ae-8bd48d45a3e1","block_type":"box","text":"consequences which cannot be predicted.","page_number":105,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"2529751c-b1fd-4fac-a5b7-bab6cdbef37a","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":105,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"6c8a8b79-0d71-42f5-b13a-956c1bb302b8","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":105,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"2e893151-5daa-4da3-b1a4-b765254d574f","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":105,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"fd0fd3ee-5a13-43c5-984b-e359804d82af","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":105,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"de9b39a6-38fd-432b-a05a-58d9378720c2","block_type":"box","text":"term of the agreement.","page_number":105,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"b08fe5e4-e857-4ce8-bdc6-9389f09de8ed","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":105,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"baf19986-5210-4716-82b1-d506a56293d5","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":105,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"75edbeeb-bac0-42bd-bca9-dd0e1c5bcb5d","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":105,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"36a0fce3-1416-414c-bfcf-e1c88adaf197","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":105,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"1eb91277-b09d-46b0-a75a-35a131a37715","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":105,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"af513654-46d4-4f52-b8f0-5af1aaeb245c","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":105,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"43a45913-9a2e-46f5-b652-56b8b76802c0","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":105,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"b0c89b42-ef81-4f6e-8364-b8d789baae24","block_type":"box","text":"II-69","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"75e02d27-2dd3-40be-a015-29bcc0bf9773","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d5118874-d2f1-44c2-b1a5-1f278736b2c5","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":106,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"1b28d479-1d63-45af-912b-3b3ec6c32d37","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":106,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"0da65cba-2b7f-4036-8d42-e1b5e8b1f1b5","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":106,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"4d9d4f3a-a976-4a36-abdd-cd51557c85a2","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":106,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"ee2ba533-c320-4583-81bb-7b566fc53e95","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":106,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"562290de-99f1-4441-86ca-8d7013d183b0","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":106,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"60e2d17c-2cdf-4862-9a79-da1bbb3cde26","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":106,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"3351e4de-3174-40dd-a87f-dcbadc906374","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":106,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"a38bf3ec-b2c2-45cc-89a3-d988a321363f","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":106,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"ef78bb11-6447-44df-a9e9-594afbcd7ee8","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":106,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"4b906706-a077-4e03-bbf4-2b833a0458b2","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":106,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"eb48b8be-f9f4-4a79-9221-8a33289f66f6","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":106,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"cc9f71d0-9d90-44c9-a6dc-47fe107c744d","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":106,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"b5af2bc8-a92f-4983-8956-31b6007f7211","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":106,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"3bb8313a-1f3c-4210-bce6-c2495c7214ca","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":106,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"03dfbcf9-f987-4577-8f98-a37233a2902c","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":106,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"7b2a6892-675c-4b64-8e16-2d5a9e27fa8d","block_type":"box","text":"or by another authorized securities depository.","page_number":106,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"941cd492-5031-4894-8c3d-d686a774e10d","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":106,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"99893391-4701-4b5f-994a-c8a107332ae1","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":106,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"b37b7b0f-1a4a-47a6-9e4f-b23f7176259e","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":106,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"4fc41850-0fdc-4b5a-94e1-28fcb7562a04","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":106,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"24836051-d032-420f-b82e-bccb35841ad0","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":106,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"45f28a76-90c3-4398-97cf-b2591e72308a","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":106,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"6bb8f9f3-8026-429e-b480-030dee2080ca","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":106,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"127282b1-afde-4ddd-98cd-c4e9c9fbfde2","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":106,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"f7543ace-b652-495b-b39a-e12182ada44f","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":106,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"d842d10a-a6ab-4567-9b8e-b79e6cb4e1ea","block_type":"box","text":"the repurchase price.","page_number":106,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"60137dbe-28d1-413c-a919-ff2197522538","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":106,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"a9cb4aea-83d6-4663-9745-add551fa016a","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":106,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"b99439a9-7e1e-49c1-8c74-0b43ff231444","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":106,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"74099d21-a77a-4913-8967-2c46d2b492df","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":106,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"9208a678-32fc-4604-a649-45615d9c669d","block_type":"box","text":"strategies without the repurchase obligation.","page_number":106,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"8ef483a4-f5b7-44c1-b578-d2c3cf4fa037","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":106,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"1934ccbe-e2a3-4d22-953d-58ff09cce95d","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":106,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"c315bf1e-4878-4246-80a4-ef2bbb64e40d","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":106,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"b82ca380-f0d5-4670-abd4-2a5c6fa1222a","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":106,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"3494eb8f-1e3a-472d-aa8b-34ba3e996114","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":106,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"1943f814-d04e-4b84-a9c2-d10555bbfb51","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":106,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"0d47f236-b19b-4287-b79b-c6d32198a4a8","block_type":"box","text":"i.e.","page_number":106,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"22286607-0aca-4b8b-a27f-1fc50cfd43b3","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":106,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"59dc54b4-e71f-41bb-bc37-39757a6b5e64","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":106,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"77340752-a4ed-4bf8-bde6-90c1d6fb892d","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":106,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"9036efb2-946f-409a-84f5-fed1dbb7aa89","block_type":"box","text":"and income involved in the transaction.","page_number":106,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"9ef73ed4-a549-421a-9ca4-100fc85c9b14","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":106,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"30a2f01e-2461-4665-86ae-41f864672686","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":106,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"9c55993c-3140-4558-af7c-0e34b5071635","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":106,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"4c7780e1-8539-4fbc-b17d-44298ef52e7f","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":106,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"102139e9-dd04-4f8b-9284-b5e6c6228a54","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":106,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"05067f8b-bd09-4411-a31b-040b3f2584b5","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":106,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"223e0578-e5a8-4a69-96cf-14bb438150bb","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":106,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"99738928-d784-4432-9b9f-256f938ea3b4","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":106,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"5d707cea-3d53-45c9-ad14-70b3bd4a50b7","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":106,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"0e7e6da3-3adf-4982-be32-1eed97818e07","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":106,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"dc3f9856-e626-4bec-a0ed-266fa4018d3a","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":106,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"2dfe75e6-38ab-4ce8-b849-83e350912e5a","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":106,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"ac4ff221-d145-4cdc-b659-014e1755ed16","block_type":"box","text":"Restricted Securities.","page_number":106,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"a5c7f7c6-ca08-4b7b-8e5c-d0e34c458193","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":106,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"e701233e-ce7d-4934-a279-2cbc2e1438e6","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":106,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"c518a77f-c8e2-4d45-9444-65a4b4534de9","block_type":"box","text":"II-70","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6140c822-00c4-45cc-9414-f4ee47cd7f2a","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e16a56f-fb6e-4959-b2a8-5e7c32f49863","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":107,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"3f74aac7-3ca9-4f18-a96a-0752aadad166","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":107,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"adc9e71b-bf50-4b03-a4e4-322a56d41d7d","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":107,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"a2664596-3755-4bcb-8bf7-abe378c0074b","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":107,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"a68e2754-e2d3-4b86-8f5e-8fbae59e8398","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":107,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"77e83380-a35a-4434-ad7a-4468d961f873","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":107,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"0a84c814-e453-4c37-99a8-54ecc77977a3","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":107,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"00f7adaf-6517-4c4e-9e50-13451bad2b0e","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":107,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"82fc7958-d6d5-4b18-a792-a8d74c58a59f","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":107,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"967d5aaf-0323-4c7f-b313-6a419dbede24","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":107,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"f8d05df4-c274-4f5e-9b16-ea09f430881f","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":107,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"525cef84-3841-4a67-a76d-6953e9ac599b","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":107,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"4d65382b-e2db-46b7-aae2-48db74d69d71","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":107,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"8f103111-6b7a-4a98-ab44-ae8796c7a175","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":107,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"53f79381-7510-4a3a-a2ab-0e742dabbac2","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":107,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"1ff4c451-ed42-4031-9dba-94447a310462","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":107,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"e1a432d5-84c6-4be9-8400-407259843c80","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":107,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"7bfc5194-2189-436c-bc7c-b7dc121227ef","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":107,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"778dd9b8-2a68-4eb5-81bb-13cad36d7865","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":107,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"b73ce94f-7d47-442b-8eb3-dd47688ae514","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":107,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"a636d9ab-0411-4f39-8dfb-0b6e1e3110ca","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":107,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"62b6887c-63e2-419a-b133-6e6d6b7d4d86","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":107,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"85f4e0df-b94f-4813-a968-5f548d7aa3b1","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":107,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"1b142ee2-46d7-4c52-ab4d-4011aba87fc2","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":107,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"25d61be6-89be-4ef1-9640-b46e4e58047d","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":107,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"e2f8900b-cb8b-49dc-9dd9-d859ea922219","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":107,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"22eb0618-e055-4589-b269-fa1527035457","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":107,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"68548047-06e9-45cc-b855-48236f02dfd6","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":107,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"fe1ea1f9-9f54-485d-a56b-388a9d5324cb","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":107,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"c7d7c158-852d-4ba4-ad78-8e036b1b6ade","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":107,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"51ae108c-4247-484f-81ec-35de1850afe8","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":107,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"1ab9a6e5-cc21-46c6-a9da-e4d89c2c9af3","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":107,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"634b1422-394e-40ba-b373-7c5296f53fd3","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":107,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"f0ef09c2-4c2c-4c52-8043-c7ae735a4569","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":107,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"4dcc2eed-8968-4c9e-b7c5-398ba561a9d2","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":107,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"c5c1c04b-49f6-4ce8-8251-721193bfed82","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":107,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"fb4ad17e-7c98-474d-a9b1-47f2a0be7f04","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":107,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"c5162835-55ef-435c-b93b-f9a14683eecf","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":107,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"36325569-eb48-42fc-8131-f8446d276e9c","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":107,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"20fa6f3a-0d97-458d-a50c-62ef5e7aa8a8","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":107,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"f07f89bd-c1c8-477e-b6dc-f4b2da13f174","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":107,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"72a6988b-9e1f-4caa-b2a9-22f845f40a0a","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":107,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"00de5f37-8943-45d8-9cf9-11d5113df2b7","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":107,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"23c98e53-b0fa-488f-b9ef-e0ece8e6fe38","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":107,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"8b52b662-b147-4185-97fa-7347e9f65c54","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":107,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"4619321f-f200-4910-a9eb-b80c88875181","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":107,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"c59ab451-4585-4097-88a6-8fbfddf6bebf","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":107,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"14cb0797-86d1-4fa1-bada-4d295874ae18","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":107,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"e9d12610-0573-4fca-85e9-9c3230715c59","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":107,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"71dbcd4c-ae5d-4901-a80d-c0375b2a65f6","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":107,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"6d63eb50-763e-474a-b55a-9376d1a80836","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":107,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"2d8964e8-259a-4c64-833f-c7117e90b0b7","block_type":"box","text":"especially as that Fund grows in size.","page_number":107,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"bffd4534-4895-436a-974d-c5d13f83e2f7","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":107,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"7f87a1dd-66e2-4a34-b262-1d547d60e12c","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":107,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"4c2b78be-c391-4ea2-857e-0d74990429d0","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":107,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"e30cf5a8-cc9e-42b9-accb-ff9d31d028fb","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":107,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"8929b095-a4f5-4971-ada2-6e0a05e12640","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":107,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"acfcb2c2-ac18-484a-a0d0-f86595af3e7c","block_type":"box","text":"II-71","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17067569-f3cc-48b4-b50c-2f4853935cf9","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41ecc5bd-70d1-40b0-aab6-e53e12e31d56","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":108,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"43f80515-e3c2-46c1-8ded-c86dfa5c7c63","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":108,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"5598cc61-bf10-456f-a139-56673a3c4bf4","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":108,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"4e815f00-6ab5-44a7-8ef0-044a8ff7a8d8","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":108,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"bf9c85be-df65-49e8-9cd3-b1251ea607ff","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":108,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"5d659793-f334-43f9-a7ea-470e566e1b8b","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":108,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"7e2254f2-1a14-4019-934f-e4e79f791f4e","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":108,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"3abbcd18-b133-4647-870e-b42d64d3538f","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":108,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"a57154ad-7ee6-4655-a82d-63ea4dabdf27","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":108,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"f111f2d7-6bb6-4f7d-be44-84c9546d8b02","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":108,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"9f3e4e36-51cb-46e2-b469-31aef300f532","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":108,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"a6fe0590-d8b3-4f01-a3ec-28c14dd6af9d","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":108,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"d03a8ed9-cd5f-4873-9efe-9e3d920d2b7f","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":108,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"41a66f15-d721-455a-9cd5-d2adbeb4b411","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":108,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"82a3b133-6cc7-4553-bf2f-755a9d8ebba3","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":108,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"78d1a9c1-0e8c-405c-9a73-6cfa10a67e72","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":108,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"2879a73c-2d2e-4e3e-8a9d-2dfbba9a3e71","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":108,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"656d6076-efe8-4086-bfc7-b16214901523","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":108,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"13243268-6e01-4e10-825a-8f87ffc1273e","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":108,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"524ccb23-cdcb-4c31-b612-c1f28cf87d90","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":108,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"457fd902-7edd-4b42-a5c3-6e0239efdd8f","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":108,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"9cd1d48f-a977-471b-8147-4acbe4e04a64","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":108,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"7655efc7-eed9-4395-af30-1cd94b18708d","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":108,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"bc110131-9ab4-4324-91b0-fa9ccff7bf2b","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":108,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"f217d094-2429-4041-b694-0d381107c842","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":108,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"95c6591b-9608-4083-b33b-267b54790516","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":108,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"8e023af2-fb76-4a81-9451-4c5ef104ed97","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":108,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"eaa3f4ec-1453-4b01-9b66-bf4c70c8ae48","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":108,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"e9f1fc3c-b15d-4876-8dc9-a82e4dc058e6","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":108,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"16ad3503-ce9a-4ac6-a312-64eb271b8e17","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":108,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"e7a60794-f4d7-4000-bd9c-1b77b37eb24f","block_type":"box","text":"similar financing transactions (","page_number":108,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"ae767e35-d94a-4eac-992b-e84a47b3b79e","block_type":"box","text":"e.g.","page_number":108,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"3227db4a-8676-4f58-838f-d3a7f662c333","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":108,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"d06dcfac-7427-4084-a8d6-723c1d940abe","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":108,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"bb04dfc8-1ac9-4662-941a-b87e37729cf0","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":108,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"1fe8d68c-5cfe-4937-9d04-b5d6089d6607","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":108,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"6a974f9f-f3b6-4375-ac37-4aac10d31568","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":108,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"9437bc6e-c0ec-4ac5-baeb-147329b1222a","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":108,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"e8a0791d-a8a6-403f-b73f-85237232d353","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":108,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"48434526-975c-4aef-b5f6-2e59d9f106c3","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":108,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"c1fadec4-9422-4b42-a6fc-0789e8c31a2d","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":108,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"00fd5d0a-f3e0-4e1d-8786-3b6c267d58cf","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":108,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"b2bec6a7-51df-4f72-bdfd-718a213570d5","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":108,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"2fe042d7-73f3-4a6c-bb31-5e06680159bf","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":108,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"80a52e11-658b-4172-a942-758f803d822c","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":108,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"a495fa89-2428-4077-9df8-c9769e94ca01","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":108,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"d4d15697-2aef-4a66-99c8-8fc140a07f90","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":108,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"82bd39ba-616a-4f1b-a3e9-d76ddb8f6328","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":108,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"aa966f52-1493-4499-9ade-75f92646bae6","block_type":"box","text":"amounts to be received under such agreements.","page_number":108,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"5d0ae614-91db-4a2c-9d90-cc883eeda5c6","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":108,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"5bd83733-c07b-4bc6-beeb-799909a7bee7","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":108,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"3d3363d6-1a3e-4a28-aa34-34c45392f381","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":108,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"a100f7c6-ecc3-47c0-81e2-679c64e78bab","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":108,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"86bf6d5f-1aad-4e24-993b-6056dfebeb08","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":108,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"f91a88e4-c554-4584-ab82-b7acb15c8f99","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":108,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"4711a3e9-016d-4ecd-b223-00f33c15ed0e","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":108,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"1d611bc3-1033-4a79-b811-c9028e131a2f","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":108,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"d0bc31a4-0ae7-4735-879f-1e54eb11dc91","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":108,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"cfcfcab1-ea7f-4761-ab6b-003895d1003f","block_type":"box","text":"II-72","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"10992392-ce73-4989-a473-8870919f851d","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e2de8d9-f912-4015-9404-2138e4159e8d","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":109,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"35dfa684-abe8-4577-91ed-8f8ac5a1e161","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":109,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"4f866e16-cd17-471a-a12b-68b3229c0597","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":109,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"e30c5b50-f404-4a38-b03f-f82f6ca59918","block_type":"box","text":"Rule 144A Securities.","page_number":109,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"69ea2d17-849a-4c24-83f7-26395e52c038","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":109,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"99767971-cd59-43cb-bfe6-3ba6ef1158ab","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":109,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"289e1447-1d7e-4d71-a0c7-083a293e8c0a","block_type":"box","text":"Securities Lending.","page_number":109,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"dade43c2-cb3a-4fd7-b02b-50838fcca226","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":109,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"6a4d3eec-be92-40ad-b446-408189779e4c","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":109,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"fe02c7c8-2bb0-4f80-a5be-8394ad6c0999","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":109,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"5ac567e8-754d-4cc0-b4ff-6175ee2b7786","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":109,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"022740cc-827a-4edb-b945-5f2904343ed9","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":109,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"01a0d5bc-267a-419e-a23f-7536e88e3d99","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":109,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"c1539d1d-f929-4ee6-8212-d00332bbc223","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":109,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"cf97648d-e698-4c23-a07f-33f8ab4a4484","block_type":"box","text":"the securities were not on loan.","page_number":109,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"c4c4ce1f-7898-41af-97a0-93fcd4c4677e","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":109,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"afef9186-e802-450f-9c06-a10da639aeac","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":109,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"6046f6ff-7670-4df1-b173-1d0b9bc21fcd","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":109,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"af001dda-a14c-42af-9c05-4d93d590e8cf","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":109,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"b464844b-90af-493a-ba9d-640f42480897","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":109,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"1321843e-6e85-496e-a93b-dbffe782002d","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":109,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"6c7c1a32-0153-42cd-99f8-c15b57a45767","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":109,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"c40bdbc5-73ce-4857-94e6-3e3535acbdd0","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":109,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"1dcb3278-898d-4439-b35c-ffb72fd36143","block_type":"box","text":"i.e.","page_number":109,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"84bb0dc2-0641-4fe0-b130-0ce4b43c91b5","block_type":"box","text":", the risk of losses resulting","page_number":109,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"542719f2-ef9e-4dc4-8baf-10dbca673b3c","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":109,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"8e3a8a08-0fbc-4a33-82d2-20bc144b7cac","block_type":"box","text":"i.e.","page_number":109,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"638ab59a-645c-47b9-947d-f6c57992e1bb","block_type":"box","text":", the risk of a mismatch between the return","page_number":109,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"6c1aa735-d1e3-4163-9ce4-9c51cb6e7a7e","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":109,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"5537e98e-a322-4ac1-830e-9461fbe76705","block_type":"box","text":"i.e.","page_number":109,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"3c57632e-5261-4324-83d2-c5182c8b7d4a","block_type":"box","text":",","page_number":109,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"9ef0a975-d4b6-4f34-b274-435df2fd65eb","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":109,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"62b28381-00ff-4ab4-a61b-5b5212c5a87d","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":109,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"982c511f-e753-4a98-aa3b-9c2bae4fd3f2","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":109,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"3723f634-71f8-4894-8ecc-46f2136727d7","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":109,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"87991219-3c86-42fb-9ba0-f405e94c04ff","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":109,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"d151f742-58eb-4d8a-95b7-27f37990e400","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":109,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"7dfb751e-bb42-40ad-b079-37771420ec4f","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":109,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"8804507c-55c0-4417-9c26-9fc7d73f9d0a","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":109,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"f41e5009-50f8-4ee1-b1bc-cbe4014da1de","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":109,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"5aab3c79-8d84-485d-98a9-6aeae819e806","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":109,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"5f8dc241-109d-4cfb-998e-4115318d5470","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":109,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"330680fc-03c9-42a7-952e-b67a9098d2eb","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":109,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"4a1df80a-aee8-4f88-871d-e4a964748f09","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":109,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"cec0d6cd-f892-4a93-a3c5-b319f73479ba","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":109,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"d09cd46c-aa84-46d6-8560-4a70ef359af6","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":109,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"630aebf0-02b0-48f8-bd0e-551c95b3a47e","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":109,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"6f5ca2fa-1e5e-4877-a7b9-c55e2bf40b65","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":109,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"7f6e3b32-bb1a-4747-816d-dcf79dd73c7d","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":109,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"6cdee42c-5e57-43f4-8263-b7cd42c0d372","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":109,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"cde060d3-c04e-4ec2-899e-47c58b227378","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":109,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"bbffd905-3f8a-403c-bd92-423753b04ef4","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":109,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"5a88cb37-d29f-469c-aee8-0992df47a80e","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":109,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"6232bb95-9f16-4759-992d-4546acc65162","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":109,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"fea2c7bd-cd11-4a64-9583-ab9ecd52af6b","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":109,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"8b0f49bc-af9c-460d-a58d-bb28f520cccc","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":109,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"f2b34cfd-ffef-479c-b4d8-37e5c41aa1fd","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":109,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"9b3f65e6-8b5c-4d28-a50b-70b91e6943db","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":109,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"a169ad20-740f-4d4b-9b92-b9b326fe6bf6","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":109,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"d413faac-3be9-40e9-949c-62d0f23fd5ae","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":109,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"242e3bab-7433-4909-b49f-cbe21a4f491e","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":109,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"60f6e0b7-eb82-4a3d-8de2-fb93f7b586bd","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":109,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"08ea1154-2a12-4cb2-aff3-57924d7a3ab9","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":109,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"08322af9-f6d7-4e42-8da8-9cecebb26d2e","block_type":"box","text":"II-73","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2826880-4c87-49ae-b2e6-d6ab3abffbbb","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"267a5094-c8e5-45d2-8f34-f43638ac2137","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":110,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"8c640e1a-4365-4c14-9b79-c2556fe4aa3f","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":110,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"58f621b0-bb16-45c4-84ed-0cf894a45c31","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":110,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"7a484ee9-3795-415a-8c64-de5af735e5d0","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":110,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"9bcc9c49-5d43-4efe-aaaf-5c0147ed0172","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":110,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"2170a84a-6a6c-498d-8e3a-a41ccc8d672a","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":110,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"55bc9976-3b0f-447f-92d0-9c6b1dc1153d","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":110,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"af3e40d5-e56c-477f-9b85-3f0bbcc0d312","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":110,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"852271f5-5f40-4730-a130-d148c854f4aa","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":110,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"15524c05-9bed-459c-8fe2-b1f5bc74387e","block_type":"box","text":"the current expected compliance date.","page_number":110,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"2fd31dbf-1a69-4b50-9355-6ae27908210c","block_type":"box","text":"Short Sales.","page_number":110,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"8202f2be-69f9-4392-b5d1-5c476445a831","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":110,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"1ebb195d-7cff-4356-9e3d-6859a7b91a81","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":110,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"5246a2ba-d5d3-4c08-a6e2-fa791b9d44fb","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":110,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"4aafa448-2b2e-477c-9063-fd3689ea2d39","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":110,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"a28e1c10-34d9-477a-9be3-10a054dbddea","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":110,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"6502a4ce-adc1-4827-b6a6-4b37c756ab51","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":110,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"d278adb3-11c3-4296-b57b-a8f3686fec8f","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":110,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"1eee1c66-9fef-41e6-b6f1-376a0884b95b","block_type":"box","text":"securities to the lender of the securities.","page_number":110,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"1116af47-18a3-4700-a496-5ba3771587aa","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":110,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"03eb5cc2-f974-49f7-9952-216a3a691c8f","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":110,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"f37ebede-72c0-42eb-bd19-1597e9be7759","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":110,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"0e553608-9d38-4124-a122-6bb884851f96","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":110,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"99e0a78e-7318-404c-a801-d7537928440e","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":110,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"a4ab4131-7441-4df4-8575-e320428bea74","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":110,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"06b23794-af46-43e4-ac5a-7f6d61f010ad","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":110,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"d0464e41-8ab2-4ddb-8a2f-e02eaf10ef3e","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":110,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"8e90a9f7-7475-4cff-b1ad-cda118d7ab3b","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":110,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"08cc6066-5471-4cc7-8cf1-2cd2a5a230e3","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":110,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"e5c070a2-15a6-49ad-baf3-02b8a5ea0863","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":110,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"6d8015e3-2c0b-41e1-a48a-32cb0e0e8397","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":110,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"7ea23456-93e2-4bca-bfda-0f9c7719e055","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":110,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"c6f7b7f2-e819-43a9-9a25-d9e37d6d9022","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":110,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"c5ff26e4-c6e9-4760-8e6a-a0a7507f6733","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":110,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"0083da10-b642-42bf-8734-54e7cbeaed44","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":110,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"894b4704-3aa5-4b99-8e4a-9190ffd8c7d4","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":110,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"9a6b4b08-82e8-413c-9e43-6d13a56d0fae","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":110,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"76249812-dd18-405e-b00e-1ffe5522adcc","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":110,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"ec66d69a-3a67-4786-bed0-6a5380c02314","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":110,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"7b90a8a1-09fd-439c-aca9-5b9597f82af5","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":110,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"ee41bf44-2b94-412d-940e-71acd43157b6","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":110,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"40a20749-b1fb-4803-9a91-f3b07b755e32","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":110,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"aec6a107-f958-441d-ac26-09ea22eff572","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":110,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"12c1e4ba-8253-461e-babf-c16081348db7","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":110,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"ae96f627-3143-4a8d-b742-f11db3db3d47","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":110,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"129cd9e8-3ac3-4d84-a21c-2c0fe166ea1d","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":110,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"ff52e95d-b078-4598-9e4c-aae5bbd6f7e3","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":110,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"75c7fb40-680b-4171-827c-b0b055bcca1e","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":110,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"50e1830c-7566-4001-a6a2-4facd7924bdb","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":110,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"5852fb73-bc3d-4253-a445-a13db10b96fd","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":110,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"2216751a-c376-4f3c-8432-ccc6877b9f95","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":110,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"cca9028b-65bf-4852-bd09-01c16b3ad4f6","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":110,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"41cc6d30-518b-46ee-bdf0-1da1a56e2de4","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":110,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"ada2d518-8b27-4316-ad48-349a89204973","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":110,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"316645f9-0096-435e-84f9-aedd9c378dd7","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":110,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"9f7362bc-ef33-4dbd-bc48-258f07e9957c","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":110,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"72be0fc5-fef0-4bc7-b229-f5eefddc4c37","block_type":"box","text":"II-74","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2216761-a969-4e17-a245-d171419c6a57","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"344ea9dd-cacd-40f3-bfb7-40061f618d9a","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":111,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"881ea9cb-f228-4015-9bf2-48f751213160","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":111,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"f22e1e60-16d9-4e5f-849c-a8bb3f92e335","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":111,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"24b997cb-6c73-4f5c-b578-97236f273545","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":111,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"bad72353-b8d2-469f-a231-38bb495d31e1","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":111,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"54b94b4e-823d-4c6b-bdc5-0a5cb938ba1a","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":111,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"2f345186-2797-4ce4-9b66-927b5655482e","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":111,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"36147a5e-590d-4ef5-a12a-960075269a32","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":111,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"7fa2314a-82ab-4044-8dca-90a259db551c","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":111,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"300f8348-4e7e-42ea-8265-ec05a8292fd1","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":111,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"99ffdbee-7392-4da5-a4f1-b4a4c42109b5","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":111,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"425ae3a0-745f-4f84-ac89-5f93da03b9d3","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":111,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"2d4434e0-2442-4506-8d5f-af1a6dbd15f1","block_type":"box","text":"Standby Commitment Agreements.","page_number":111,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"d3602ba8-ecc6-46a0-bddd-3a3aa3fcbafb","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":111,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"7523f1e7-e00e-453a-959d-7a654a6c2e79","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":111,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"33d3f03f-176d-4b78-bdb2-0340dcfad6d0","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":111,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"bf9fb9e5-1059-481a-bd8e-0ccbec405a83","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":111,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"e3276284-38d1-47c3-bd1d-4c445e762134","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":111,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"61c6ae66-c340-4dfc-82de-86e1c0f0c58e","block_type":"box","text":"advantageous to the Fund.","page_number":111,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"e5bb9ee3-20ef-4728-b3a8-f123a25a8ee1","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":111,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"46f9d4f8-1e0a-46b1-a145-69b32d35e8b3","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":111,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"265b625c-ca43-4c8b-aafa-4a20c538e524","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":111,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"b04f6145-2358-4c37-9910-d9c0c538a1f1","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":111,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"54a6cd09-5360-42d1-9eef-1c3cce5ca1c6","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":111,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"f872f889-c0d5-48b3-af1f-dcd5c43f6444","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":111,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"c89894d1-921f-4254-b34b-4507fc596fb5","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":111,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"a0b8e528-f5eb-4f78-97aa-11751d7bb042","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":111,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"ec46b52e-e837-4548-b5cd-dcb4970c324e","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":111,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"9fb4812b-9d69-452e-9ff9-dbe4a18dbb22","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":111,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"0b0b25e9-6c50-41ff-951b-76a2e6a58626","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":111,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"42288d5b-a472-495c-a2bd-56bc57a0af4b","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":111,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"1f94985d-f1a5-4cae-a36c-4cf78b9a1c53","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":111,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"92382606-e142-4365-9c95-5faf8f2c3fee","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":111,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"b8007d53-9b1d-415f-a965-cb7d268c92c9","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":111,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"31967757-871e-4b1a-b844-2edda29b7631","block_type":"box","text":"Stripped Securities.","page_number":111,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"2e1f3e6c-4ce2-4402-b02f-c349bff26ded","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":111,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"8e738718-9284-4bf6-8514-c55b1c9a8801","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":111,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"837d505b-83f5-428b-bdc9-e39997ce3577","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":111,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"983e8d08-ca5a-4228-84a0-b2be5ea91495","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":111,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"91435c27-0d6a-45e3-bc63-f3b87d30ad68","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":111,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"e0bfcdfc-ef23-4da0-86f5-0af145ce9089","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":111,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"5feb7fac-f159-43da-b09b-0c4e81edd702","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":111,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"099d79be-8816-443f-bcdc-0c847d883fe1","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":111,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"3b647438-1431-439d-8c2e-e6a432cdfd6e","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":111,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"45aa2470-2ee4-456b-8dd8-abfb6819e778","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":111,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"398dd333-25bb-4408-b18b-bceec1d124a0","block_type":"box","text":"Structured Notes.","page_number":111,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"90012a81-04a6-4e49-afae-56b5896cbc14","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":111,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"5cd4cb3a-0bcd-461b-861f-73f739feba8f","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":111,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"6b74eeb5-7470-4b74-9279-1f2bc35a42d0","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":111,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"1b0a3324-d3a3-488c-94ac-4605061d7d3f","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":111,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"d1825ce0-a120-4a3f-b46d-d113c8e201af","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":111,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"7c5d6774-80ed-4335-87cc-42217967806e","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":111,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"04ab9055-bf3f-4833-8495-88d972d372df","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":111,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"51a4602a-19c9-49f1-8e16-ecc28896e6d7","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":111,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"2482edc7-6d98-4486-8f30-6c97ff09de48","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":111,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"7cb61a28-bf45-494f-b839-f9f45ee99186","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":111,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"2b6a99e1-d691-4077-ab5c-1ec7d1493487","block_type":"box","text":"II-75","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acde180e-f8d9-40d9-8308-b79bc0eb41d3","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55ea6d68-0526-4a39-bbd1-5ad9d527df72","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":112,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"15fce7d4-8026-49da-8745-d93354ff404b","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":112,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"af174a12-9aea-4ff7-bfa6-abd45a7806d8","block_type":"box","text":"the risk of loss.","page_number":112,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"429e61a5-4ef0-461d-8fee-897cfbd36d3f","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":112,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"d686d3cd-7725-4658-af84-f4fc1727c174","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":112,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"5920620b-a6bd-49ed-8d4b-24c80c148b66","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":112,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"be45f736-550f-4e5c-a1b9-50031558cbc8","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":112,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"770aaa65-e36c-4dfd-881c-270cfa610534","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":112,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"07926f3f-5733-4093-a9fe-ca41d605348b","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":112,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"6d3b71f6-6794-4083-8cc2-8dea9357bbe8","block_type":"box","text":"Taxability Risk.","page_number":112,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"57b20d32-d885-4a97-a9bc-3905f97a8637","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":112,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"899ca207-a23d-4ecf-b684-f8f6d115f0c5","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":112,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"eb3cfde4-d68e-4948-9d5d-771de0e12de5","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":112,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"2aba1364-ac23-4fb4-9de4-0245d635366a","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":112,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"dfb5f737-ce36-4cb5-9296-40b2146c3107","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":112,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"1b16f329-7ee0-452b-ae14-cf9bcffe2697","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":112,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"c85b05ac-de51-470f-b4df-d02f16b09f55","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":112,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"7786a3b3-a63b-4482-afc0-30fd18c70304","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":112,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"bf1707c0-e99b-4bbf-82a3-84bbbe1e800a","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":112,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"ea261366-e7b0-4ced-bf24-54048df9e565","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":112,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"c4601075-4855-4844-a592-b98513903ab9","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":112,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"8bcff5cd-9cd9-45b4-976e-dce6cb075768","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":112,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"1c56e5eb-55cb-43f1-a805-6ee071911867","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":112,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"9a9f8124-be24-4e44-acda-f7f22ca04e65","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":112,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"4ef3039a-5057-4169-adc0-7b04d3356df6","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":112,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"019b1b98-3986-45d2-bdac-24260e95bfd3","block_type":"box","text":"the value of an investment in the Fund.","page_number":112,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"9b35f559-8742-4a82-87aa-370a355b6e37","block_type":"box","text":"Temporary Defensive Measures.","page_number":112,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"a86d6487-7229-4a17-ba4b-76f6c61dc44e","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":112,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"84e7941a-9c99-4f56-ae04-4f59b2a20581","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":112,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"c7e3d7d5-42c0-4f6f-bcf9-09dd39b4e96f","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":112,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"74a02b3e-f5d6-4980-86ba-6c527d694694","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":112,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"31a83f49-660f-411e-affe-6d13f7773fbd","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":112,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"a2e457f0-bbfd-4518-ac15-8a82693e5c15","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":112,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"3fe07a5b-5bbe-4ad8-99e8-5d5a9464959e","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":112,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"2f4a60c9-5796-4e1c-86fe-0705520c995f","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":112,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"6b9d37c8-c9f7-41c0-af93-4684218f79e0","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":112,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"5efeffe1-3e47-447e-81d1-ceef454b80df","block_type":"box","text":"its investment objective.","page_number":112,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"d587ed5c-4afc-4509-8ade-9b9077706487","block_type":"box","text":"U.S. Government Obligations.","page_number":112,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"6348c0c8-12b5-4342-9dae-d47c2dd33810","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":112,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"117238ec-48f5-41c4-a4b8-9ba4ec6a5bea","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":112,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"8ac79952-116e-4673-8267-1e0930cbcb6a","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":112,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"3677db2a-24c3-4df3-9045-41a460c4a510","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":112,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"5630bd68-2aa2-4f52-a604-42246f1fd328","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":112,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"6e273a41-0093-44f3-a105-ce1bdf6a9a9c","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":112,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"6fe1dde1-53cc-465e-81af-332870131d8e","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":112,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"8ee470eb-7780-4c06-b16f-21495177ed0f","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":112,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"161c75e7-c138-4993-93f9-a5f3303fe468","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":112,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"e0cec5db-0923-4b9d-b552-d33d5c850429","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":112,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"b9c12c72-abde-4e32-b894-8b55a1c4808c","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":112,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"6c96ca02-35f6-4e30-bd3d-be084678cc2d","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":112,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"84622b91-42e1-4cb7-af81-d094057cceb7","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":112,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"86f11e7d-64cf-41ae-854a-cf0d5d6e61e0","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":112,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"2d460f4a-7884-4709-8e9f-d4c9b8cadfeb","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":112,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"0f23b118-a144-4872-9742-ba85e977e92c","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":112,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"7322b5f0-9780-4a15-b27c-b87b0c8d1180","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":112,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"0d408839-cb7d-480f-96b9-c7f91ed70131","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":112,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"5c1a0f71-166a-4fdf-b6f7-af31ea520d3f","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":112,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"63efd057-1040-4781-8ad1-1da59a0e9534","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":112,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"6feb0eb5-de20-484d-a860-3a9c979f69f4","block_type":"box","text":"II-76","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"28f480c3-f5c9-4918-a4c6-ad56014ea037","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9fbe1fc1-a005-4990-b857-ead65578cec0","block_type":"box","text":"U.S. Treasury Obligations.","page_number":113,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"51ee3136-4b69-4e73-8aca-9fe4e8d0f59d","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":113,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"b7e24887-e727-4566-ba0e-87711b4ea60a","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":113,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"0dfd7a49-6600-4962-b250-b8c02f819d6d","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":113,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"b36984f8-ce87-4c36-b36b-c089352bf265","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":113,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"9bb030b0-733b-44ef-ab42-7b8e5a24dd8b","block_type":"box","text":"do so.","page_number":113,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"f436fb70-daeb-4166-9b10-8a3f91b7509a","block_type":"box","text":"U.S. Treasury Rolls","page_number":113,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"24529bcc-9683-40e6-94c0-0ac8568e6835","block_type":"box","text":".","page_number":113,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"81a664dc-da56-486e-8c19-1ede49fd541d","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":113,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"8ec8e24a-c5c2-4979-8f7d-2d64b8f61506","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":113,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"aaeeed6e-c5a7-4a8a-b426-907c6d4c781e","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":113,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"a8bbbb93-a7c1-4f22-93e6-10337e0646df","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":113,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"02e8ecf4-4836-4600-ad6a-0ff620c5783d","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":113,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"7c6377c2-8490-4669-8b6a-29eccd43a577","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":113,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"b0493da0-2281-48bd-ace2-6b99a134af6b","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":113,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"87490e6c-293b-4233-a577-e241e92181c9","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":113,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"cad81099-ac7b-4bb0-b2ae-a93e314e26de","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":113,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"4b70f3bc-ad41-4704-9c85-026aad80e871","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":113,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"6dccae7d-a584-4c86-aaa5-f704dab28f30","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":113,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"23c34549-265d-49b0-aec5-20c5e9dc5503","block_type":"box","text":"Utility Industries.","page_number":113,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"4f936dbf-e3ca-4a1c-a673-ed1782318afe","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":113,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"18355c49-b7f9-4479-a985-f041d78b8066","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":113,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"8fd831c7-0d6d-42c0-93fb-3b323923e20a","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":113,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"572965e7-db09-4c58-9064-b49f9e77b6cd","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":113,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"850c5774-f8e0-46c7-9aaa-6f22623587a6","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":113,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"046d64e3-0039-45d7-9707-9efae6e1d820","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":113,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"95836f42-72db-4bc1-987e-228dfa651c47","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":113,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"d4ad6c0d-40af-40f5-8581-94b7f7ac1815","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":113,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"f7ebb8dd-3bcc-4ecc-aa58-acb35d64593e","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":113,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"9681872c-d81c-4f36-95a4-805f755ccab3","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":113,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"77c10ad1-4c15-4fcc-b0ad-f1d2dd228e37","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":113,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"20922ce3-1527-42ca-bbe2-1d67518ecb97","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":113,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"0cbf7cbf-ee7e-43c0-abe1-0fc417a8fe46","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":113,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"7f860282-1d53-400d-94e4-b7e84bad2b5d","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":113,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"d1a21eff-7d65-435b-9b8a-d1671efeecd7","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":113,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"9373fc9b-2a8f-42b1-9db6-fa538475bf00","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":113,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"d95fb3b0-8dfc-4864-a432-1618845970f3","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":113,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"68a24b0e-671d-4157-8b81-d50c43a50160","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":113,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"abe38b62-e41f-48c0-a17a-2aecfe0adb92","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":113,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"64700d13-4898-4da4-af7e-e243550a28c5","block_type":"box","text":"utility.","page_number":113,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"ece3ae72-7833-43d6-a830-53593f613718","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":113,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"3e58cc84-bc04-4f03-bf85-331b3bc8f473","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":113,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"cf7855e9-c92a-4168-82b1-da0c527ec2de","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":113,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"218b28c9-98d2-4a1e-9066-8d6899dcae2f","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":113,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"284182d7-d7a5-47fa-b1f9-7f7d2365d3f7","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":113,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"38cfa228-400c-479e-81be-c6bf3ce66dee","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":113,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"71a5a248-12d3-4ed7-a2e8-30a857b11ee1","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":113,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"6da21767-801f-413b-ac65-25d0dcf26754","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":113,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"5c2bb888-73cb-4f4f-b738-146540f5d901","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":113,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"3d5b7640-2f3f-4b9f-b72f-d74bda1bf08a","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":113,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"3262e9b1-6f54-4495-b3df-ee6bc7084ca8","block_type":"box","text":"continue in the future.","page_number":113,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"b0c80eb3-2f53-479f-bc75-47ac62c46ccb","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":113,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"146c276f-6bce-4fd4-a952-086bee96bde0","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":113,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"9bc533f1-acd3-4e74-8ab2-599b567c1df9","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":113,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"eeb7ef37-ebf1-482c-9714-3afedf630abe","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":113,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"1ca1b7a1-da73-40c5-8167-f10de1552817","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":113,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"21e621a8-65c6-4ed0-8e90-125d688df729","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":113,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"8346ad28-e845-4fc7-a6c3-1f2cc75adfd9","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":113,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"78bd42dd-7ddd-42a9-820b-53654c00b174","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":113,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"9f9639ab-3660-4cf1-9e9c-c5a215f6254e","block_type":"box","text":"II-77","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ddf7146d-f6a9-40e9-922b-e78025690fc7","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c2a6adc-1feb-4388-b5b3-3ca47cca0003","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":114,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"724c1e6d-5976-4078-86b1-a006bd1e6cfc","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":114,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"d5933322-bc5c-4a27-af7b-436126e723cb","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":114,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"131d8c6e-f4ec-4eeb-bad7-485ec97f3973","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":114,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"3316d02b-e8cd-43f5-a0d7-7e21fd2c11d3","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":114,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"f38e29c2-fb01-4f0b-8f25-071f4f8f3dc9","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":114,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"fbaf081b-57cd-4f66-9d9b-79873f7cf841","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":114,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"f24bdf46-be77-4726-a928-7d5c542d7d90","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":114,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"48f5e7e5-1326-4be0-9de5-b9a699efa324","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":114,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"2db58dfa-db5d-4082-a6ab-f5e661fe98f7","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":114,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"27af0188-c5e8-41cb-920a-e4ec98d3461a","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":114,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"9f9da6c3-1e9d-4b99-bfc0-4194ba847c2f","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":114,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"6eda32b4-4cd2-4837-ab4e-e83bac715ddb","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":114,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"92903a10-2305-46eb-82cb-548cc300f80f","block_type":"box","text":"ways different from regulation in the United States.","page_number":114,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"f26f2029-a7e5-4fe8-b893-578ebdc95b68","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":114,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"f90ccfa7-e7b6-49da-8ace-163202b914e0","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":114,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"0c41c679-c699-4a2c-8d00-2a7764b555c9","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":114,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"0f6cb2f1-76b7-46de-aa97-2938d9cd9de6","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":114,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"a0255ff1-afb5-4c78-b281-12d3924a98d4","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":114,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"6e4a434d-105e-45da-bc98-131071444ac9","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":114,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"1332ca95-c424-462b-acab-8ea1887efb66","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":114,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"4728cd4d-6d64-431a-853e-a9ab6024487e","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":114,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"a09f3ca3-e3b3-408c-98e9-3b7b6ec1bda0","block_type":"box","text":"increase.","page_number":114,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"dd67cdc5-9edb-48ff-bd5d-fe4c3603a0f1","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":114,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"c00ed4e3-4bcd-42ad-bae1-cab06a8cbfed","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":114,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"bab55430-5bb1-443c-b7b8-4fe2c9dcffbb","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":114,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"1ebaac46-682f-4323-8357-ef3c99c1311e","block_type":"box","text":"Electric.","page_number":114,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"7d6624f6-097a-4abe-b9d2-4bad2206aa60","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":114,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"b8d25447-43c8-4142-a190-46080ac27b7f","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":114,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"8dcabd2f-faae-4231-b072-2eb99df30267","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":114,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"00726016-ff25-475b-a0ca-0cf7a61cef8f","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":114,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"f9a3468c-adf7-4468-9e7d-276912e5ab61","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":114,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"f9f2c3b4-069c-49d2-b19a-94e4636896bb","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":114,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"a46de38d-ef77-47bd-8c32-9677ab94d0f0","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":114,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"af8b0f25-6e55-4da4-a79a-2f87b08c65ec","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":114,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"64f7dbb1-bb11-4bca-b865-316e672ca47a","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":114,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"dbeba53b-0ba4-4331-a3a7-30593394578b","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":114,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"c50480f1-1514-4960-82c8-adf24cc336aa","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":114,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"39a9ea67-bde2-42a0-b0eb-e5d23f4b8fba","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":114,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"3bba237c-b0ad-4412-8c27-9a73a188d298","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":114,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"c9605f1b-b81b-40b9-9d31-6f7134c0b16c","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":114,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"5539e2b4-a105-4aad-86fa-70961d1b9bf2","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":114,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"31af613d-607f-43c2-976e-111dc633f5bb","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":114,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"f3840454-16b0-430e-89d3-25dd67b76402","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":114,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"ddef1a94-2384-4c6a-b261-e758fa7f3c30","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":114,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"fedd47f6-9c10-4dd8-880b-d89dfa60893e","block_type":"box","text":"and for decommissioning such plants.","page_number":114,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"8023ae9b-9299-41f2-b66b-b6aab01a81e4","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":114,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"f3f5925a-7880-4741-8327-a02dcf3b135a","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":114,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"5a404096-0928-4f5c-9647-28e58688dccc","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":114,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"2597f348-55bc-4b41-904a-8830c5167840","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":114,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"f65d60ca-d682-4ba5-8b26-a2985d1e63c6","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":114,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"5f8512aa-8e30-40e7-8219-5f4ed1db9dc6","block_type":"box","text":"greater predictability of cash flow.","page_number":114,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"6e5b08da-ce83-41c5-8e2a-62f6e044b21b","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":114,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"6b4a11b5-801e-4304-b212-5322e6148622","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":114,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"1810faea-4111-49ca-9180-29f78d9b1079","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":114,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"b1d52922-d801-4e4c-9b9e-82a01c8ad0eb","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":114,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"36dd6287-e7a6-406c-9f74-eaef2a6e720d","block_type":"box","text":"II-78","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a7a94835-1031-41f8-9c9c-57e65d2b08f4","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f102ef3d-bc6a-4dac-8bc8-ca7c18b5526a","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":115,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"c647fa92-4bfe-44da-a839-23352fd7cbda","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":115,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"1473c8d1-405f-4edc-bd6a-2011e17b0b81","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":115,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"0d65001e-f316-44a0-a90c-822f81777f37","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":115,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"75b90f9a-61d0-45fa-bd99-2e0f6dc1b1fd","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":115,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"43896ce0-7c4d-4a5d-82ac-c1148bf83e36","block_type":"box","text":"Telecommunications.","page_number":115,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"68de8d65-6fd3-4e8b-859d-a8702f81f7d4","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":115,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"84d733e4-1e46-424c-b646-e0b48ed17616","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":115,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"086726aa-5658-4640-b03f-358d28df170a","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":115,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"3d2045f0-1f6f-4f80-a458-c2c41434864c","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":115,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"aec2b440-6b5e-4899-83ff-c022c923b749","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":115,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"0cb1e8f3-b989-4464-8818-4e36fc58fb64","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":115,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"ca03af45-6cca-4b6c-a4ba-5040930b3840","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":115,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"53a1ec1c-555b-4605-8ab7-d4876a8065d8","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":115,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"f83f1c5e-360b-47f0-9edd-39f1def8579c","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":115,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"d4413691-81e6-4f89-b7fb-fded92e484e0","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":115,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"7b6e47d5-adc7-48ce-8563-f9173eb32969","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":115,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"6bc7c1bd-1304-4c78-9c7f-c7889dd0ae9f","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":115,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"dfbd721b-6e9a-42f7-8162-3999adea5078","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":115,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"a51288ed-bc9c-4000-b070-6408c0392d19","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":115,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"0f02ca80-4eba-4850-a8d0-4b8b3c5cd4f1","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":115,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"2fe21671-a418-49b8-b865-f58a8b4fe343","block_type":"box","text":"residential, corporate and governmental customers.","page_number":115,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"0e89c419-c288-4ff4-a7e6-8b13b2514441","block_type":"box","text":"Gas.","page_number":115,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"3d93e489-3de0-4f85-a846-50b45556c768","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":115,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"a1f6e4b4-3b89-4639-80fa-4b486aac8010","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":115,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"9df17cb1-46b3-4ff7-8078-73d5ee754da1","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":115,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"d3917d7d-d60c-48e9-8cf0-94519d07bd38","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":115,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"642cb96a-541c-4534-8ab2-c8518997c4f2","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":115,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"19a1915c-0cea-4bf7-b1f6-671eb4b84923","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":115,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"ed0ab170-e247-40ac-bd2d-c3946e6b1c2d","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":115,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"e224af28-9eeb-47c4-a975-4eac6a628bb6","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":115,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"565c5488-f9ac-439e-9d09-01920b3dc620","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":115,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"cd592864-6d2b-4663-8506-b08eb67282cf","block_type":"box","text":"Water.","page_number":115,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"967e808e-e50a-43c0-b35e-d74298dd747f","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":115,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"0e3c20fd-1f76-446f-8757-81d0a342ce2f","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":115,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"98743cec-5e58-40a2-af8e-3836c530f6c3","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":115,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"b070cd7a-3691-481f-bbda-17a4d6938e20","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":115,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"879ca48c-4237-484a-a9fd-27b057bc955a","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":115,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"5f1fb6cc-e191-4c11-9754-25a2b06ef5a5","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":115,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"028c5664-65bb-4804-b82d-8c82f5ea0d85","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":115,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"11e56f8e-f996-4540-9e96-4c2c832c0d87","block_type":"box","text":"Utility Industries Generally.","page_number":115,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"cd7267fe-8150-4e04-b897-55fc82aa68cf","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":115,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"b4834414-aed0-4b74-b29d-eb4d00244492","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":115,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"60722ef0-e308-4566-a0ce-5096f7b2a3b1","block_type":"box","text":"not develop in the future.","page_number":115,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"eedddda7-6cc7-4459-b1d5-d1fc2c6e5599","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":115,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"57884b26-a5a0-4938-a93a-3767549528af","block_type":"box","text":"A Fund may purchase or sell","page_number":115,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"ced7c262-05f6-4043-b164-0416087b1672","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":115,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"cda70fe6-444c-44b0-b9e3-d9e299623538","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":115,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"7329174c-a0df-4fba-913a-b0bfc19c781b","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":115,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"41a34562-df8e-4e28-8f90-e2ff5989f136","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":115,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"076cf78e-83c0-4019-95c9-f26a87990c49","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":115,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"dfc6c3a4-cfc3-4754-bbec-f55c39e63c30","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":115,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"b2a641b8-cba4-4249-b279-a04e99a4f366","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":115,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"8552c291-8cef-4ef0-8d7c-4c5f1f9c35b3","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":115,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"5d0fcf9b-2593-401d-ab0b-ef1bdeb33efa","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":115,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"f28daf4c-9310-44ca-99b9-0ef97850c452","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":115,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"900bd088-cee5-42bb-86ff-250b1fb76e3e","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":115,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"1e15b130-f60c-449e-b374-4bb052506bd9","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":115,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"df74e602-4483-4c30-94bc-38ce856ec7f8","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":115,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"fcc49099-56f3-4a66-aed4-00a73734fb8f","block_type":"box","text":"II-79","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c081329-57f7-4273-902f-1cb25cbc51d5","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73e84dd9-9261-443a-8200-22ddb194fae6","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":116,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"c04ad07b-936f-4799-8790-0d7da039d4d8","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":116,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"e1778e94-a01d-426b-a80d-69a65944cb2d","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":116,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"0b676332-a576-4954-826a-bc1cb4a45a73","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":116,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"3c68b2d6-d407-4e84-b23d-93a532b91a96","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":116,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"cb7dcb79-d799-43f5-a0da-f23f994f94bd","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":116,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"cbff3090-f109-40ea-85cd-3f8ab0381a36","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":116,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"d7101070-e4ee-43ee-8586-e946c0e72261","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":116,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"2fdec785-a20d-4946-ad22-4918dee41957","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":116,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"def498f4-5b73-41df-afd2-1aa9c583beb2","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":116,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"a32c5495-7eea-470e-9dd2-b35167ac9cd6","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":116,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"74b46773-14cc-4db3-b4eb-9ad746ed1eb2","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":116,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"7b142481-d42e-41a4-9430-2b8ed729719d","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":116,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"96f4a0d7-3d38-4614-81da-bec03ea9e907","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":116,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"6e09972b-9876-4088-bdb1-96e0be2a72ad","block_type":"box","text":"securities (","page_number":116,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"98870233-4d75-42c4-8990-2d384fada9fc","block_type":"box","text":"e.g.","page_number":116,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"7b980039-dd7a-4037-8f4b-af4147a75cfa","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":116,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"95727713-51bb-4775-b931-9ee4aa7f5df9","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":116,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"2c568e6c-5670-4c2a-bf64-b83591edfd54","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":116,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"3421ec80-31a9-4c9e-b2cc-896ca053103c","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":116,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"48f39fc3-eb86-45e0-8246-d40dff58228f","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":116,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"d7cd37f2-037e-4ae6-be0f-f5674a4ced87","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":116,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"bbbc8682-b3f4-4c3c-9ca4-004f435e51c0","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":116,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"71998346-cb72-4734-af40-024e44141606","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":116,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"a98b5170-8ee6-4dd8-bf55-4cc3a5027107","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":116,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"869663a3-1651-403b-8014-ed6a5835726f","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":116,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"d742f118-a8cf-4b89-a994-55f5d289cf22","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":116,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"85e0bfdf-d0c1-466d-bb17-35820de77122","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":116,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"0b955653-f203-4149-a88a-960ef3278f4b","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":116,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"25a100a2-5276-49b4-92c0-8ba57393a3f2","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":116,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"91bb00c2-ce8e-4379-b7f3-7311d81034db","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":116,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"ba003570-8d76-4734-8e71-b4ef8a8db231","block_type":"box","text":"Yields and Ratings.","page_number":116,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"9b16fa65-e280-4bf7-b6c0-0a25cdbd5c1b","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":116,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"20d4b7ee-73c9-45ac-ae28-9a447eecca4b","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":116,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"fc87461c-d0c4-4b8c-a97e-781f48752b99","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":116,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"2ce06479-2556-494f-abfe-a48f6b9e62d9","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":116,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"e6e5fb4c-65dd-40ec-bc3a-357c6f1f4747","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":116,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"25966efd-4709-4493-89e8-a0146ef0e7df","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":116,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"52b989d9-f7b4-44ae-9768-698a542f8d82","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":116,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"2fb6778e-291e-403b-bc10-3269b86b814e","block_type":"box","text":"continue to hold the security.","page_number":116,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"e347ece3-fa65-4376-b502-44ab2d66b942","block_type":"box","text":"Zero Coupon Securities.","page_number":116,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"1b5bba43-be95-4c9b-b8b6-bbe2d75ae73e","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":116,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"e8b79b7c-c4d6-40c4-80f5-49f863427c56","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":116,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"28178ef0-03a4-488b-8845-ed5831613a17","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":116,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"6c2d41c5-b6d8-4d40-804f-6b077caa5956","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":116,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"6b431ee5-cd18-4313-8c56-7114bb880b5d","block_type":"box","text":"security.","page_number":116,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"d79c81e6-afdc-4442-83cd-6528e0c7341b","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":116,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"321a0f3c-0286-4294-b9ad-86496e4db4fa","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":116,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"4324b3ae-40a7-4db9-b97f-2dcdb89b135f","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":116,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"4470f84c-4835-4065-b27c-c9a705b16a2c","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":116,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"5f1337c2-c03d-46fc-b531-975cde1d0298","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":116,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"f0ef95df-3269-4aab-ac52-211a11cebca5","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":116,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"3943a1fd-48fb-411c-86f1-4cdd4d5cf8d3","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":116,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"7c6ec2f3-21f0-4fe2-9d85-8d3989397a90","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":116,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"212ac774-d3cb-4bbe-8318-3b585f82af34","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":116,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"1844b4e0-c344-4333-bbda-4aeafe21db3e","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":116,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"fe31da14-5ff6-4a00-a6eb-6ba061fef1c3","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":116,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"cf79c045-924b-4907-8342-7bd621b7210d","block_type":"box","text":"II-80","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c79dfc9b-f31f-4435-8afa-241ec33cff42","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b59af195-1e2b-418b-b87c-acbd64f8b8e0","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":117,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"3c18f67b-eed1-4a8a-b95c-1f052214e13c","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":117,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"b25ad881-875b-4d48-bd73-073561b92fc6","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":117,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"7fd4b06c-1fdb-470d-8b98-a66205fb9c3c","block_type":"box","text":"intervals.","page_number":117,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"18d5b91d-3fcb-40b5-a109-915a41766012","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":117,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"ac689d09-cb79-46df-8e95-e9bdfd5d8543","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":117,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"c53c754d-902c-4ff2-83f2-08bb211c1430","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":117,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"d1fa335a-6de4-4aba-a84e-54c383eb4b15","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":117,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"8c166958-d3d7-4720-8e1b-fe03041ef935","block_type":"box","text":"exposure to zero coupon securities.","page_number":117,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"e5d9a86c-d728-4cb2-8987-2f717ebbc460","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":117,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"fa52818b-eaf2-4d5b-adcc-ead199a81f2d","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":117,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"05981304-e1d5-425d-92fa-458870f90863","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":117,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"d6bab59e-4b50-4506-a76c-fbc8c606fcf2","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":117,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"65ebec62-5c66-4293-a7e8-d495854f07f9","block_type":"box","text":"Suitability. (All Funds)","page_number":117,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"5337c39e-e960-4c48-9015-75ab78b4c558","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":117,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"2a52a406-e72f-4075-a60d-4c894474974e","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":117,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"142a8210-1563-4d4c-b067-7d26e35cb4ba","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":117,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"e69617cf-af84-408a-ba39-725d97b19446","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":117,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"2839002e-abc8-4c19-845c-66853ac57a8b","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":117,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"6f442a1d-47b9-4544-8cfd-bb7b79ff72c9","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":117,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"cf55afa7-8b46-408f-9ff0-8c92c40e924b","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":117,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"0e468465-c04e-4dde-9738-d47230f7de9e","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":117,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"6c009b29-2875-4a96-bb4d-05b3d1b8dfee","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":117,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"28cb94ac-fad0-4f98-a466-50e02597ac4b","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":117,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"c1fb96b9-9e0d-4814-9ca0-f0057a96b07b","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":117,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"056b7cce-de77-41fa-b4ed-febd98c0c68b","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":117,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"6e3e8f4e-f1aa-4d29-a015-d12cb0decf6c","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":117,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"b011ff40-aaaa-477c-9292-e11284685258","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":117,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"7e355417-046a-4718-a9b7-5b2b20d2dfb5","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":117,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"7aab3dfe-5ac8-481a-bd9a-88dffb6191fc","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":117,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"90d83e00-1d75-4be7-80ac-aec3e191e875","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":117,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"f01b2b17-502a-41e2-bf65-5b8028e1d8b4","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":117,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"12363bac-cd9a-41a0-b5ac-418d77118335","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":117,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"847dda53-f146-4046-a289-6d09c48dace5","block_type":"box","text":"(","page_number":117,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"c044c9c4-b146-405a-a2e3-c88faf217e1e","block_type":"box","text":"i.e.","page_number":117,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"08ca1987-a5f0-4c39-86be-7d0c1acd64b5","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":117,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"6cf011de-64a2-4590-b997-4047d282ba88","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":117,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"a5ed5c0e-5197-491c-9363-7bfbb7e55903","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":117,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"560d0d2f-f2f9-40ae-8609-4e5ff0f46f96","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":117,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"b36bbbd7-8d22-43c1-a96d-60cad863cf9e","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":117,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"df8c35c6-bf43-455f-8c8d-ade84819c064","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":117,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"1ecd79a5-44fe-4d89-bc7b-f9ca22bb9a04","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":117,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"e1e22bd0-a30c-488b-82f5-8805323dd636","block_type":"box","text":"regarded as the sole issuer.","page_number":117,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"5c2d5657-5e3f-4723-86f8-482532b40697","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":117,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"97956e10-5918-46b3-ba9b-160bba286066","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":117,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"8d003f66-60fd-432d-89ce-cebb80af80f6","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":117,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"13c46e73-3d84-4253-9a0b-3310817c68b3","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. 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Certain accounting services are provided to each Fund","page_number":118,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"453e7fa4-f7fd-492d-8112-c3a87e2299ea","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":118,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"d4909977-3864-45a0-8f7e-0a0398da8833","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":118,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"dd74d6c7-e6e9-4af0-b999-e18312032c4a","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. 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BlackRock may have a potentially conflicting division of","page_number":126,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"813b3968-9a36-440a-a716-8fdaf822ac85","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":126,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"ae87c249-6a7d-477e-abe8-377673da61c0","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":126,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"d102854f-2b09-4124-afa8-48d1e4b50222","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":126,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"9d97b6fd-23bb-4372-84dc-c8f349457035","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":126,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"2882a22c-f397-4e2b-af42-0557a8e24f09","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":126,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"0d859a89-bf2f-4342-840e-8267608da8e3","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":126,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"ed90ee80-6e2f-45b1-bf16-e0a4831f8f6c","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":126,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"755246b5-a499-41a0-adf9-fba5ffb5f48e","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":126,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"34c2a222-8d3c-4b3d-9fb8-19f72ef2b83f","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":126,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"57b672b0-1d30-488b-bcfc-65657a3e020a","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":126,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"d6e2acea-4d96-4982-ae83-7c293d869cc8","block_type":"box","text":"II-90","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9da1a065-85cd-48db-a003-3bf02531ce53","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de6b7d35-70ee-4dfb-83bc-8e74f8b57c95","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":127,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"8ed068f9-da81-41c3-9cac-50f6e29ed23e","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":127,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"d8113884-dc9c-404c-a12e-6a625541e291","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":127,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"020b2888-b951-40e4-b12e-707786523f97","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":127,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"653fb2e2-5133-48d3-93b7-95d0c9340f4e","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":127,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"b3832e5b-b26b-4604-b496-bcae68e83536","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":127,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"fef4f7ab-fc35-4d04-8803-f72e90c41180","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":127,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"6666eb02-b903-4eb7-906d-a3c889b2eee0","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":127,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"7baa02b0-e4f1-42d6-9353-303a61945cbd","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":127,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"e03aef4c-0f7f-4638-9d84-d8fe2406d5ac","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":127,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"2cd4aadc-a36c-4a54-8bd0-b7663afb7dee","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":127,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"96edd599-3662-4312-9721-1b3f16d0b57c","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":127,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"b76a80fb-da67-4b59-b1fb-a1e6ab47aa76","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":127,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"19a7c60a-b2c3-4c21-acdd-b0f14ddff17e","block_type":"box","text":"managing a Fund.","page_number":127,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"d10c44ea-188b-435d-8972-0ac50a497be0","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":127,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"f6a4bf4a-cae3-4461-a449-fd899b025348","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":127,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"839474aa-1acb-4d6b-8e7f-40f08ff47c29","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":127,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"5e92aaa6-2670-480e-ad92-41d5c7ce62d5","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":127,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"546f984a-377b-4ff4-8166-0aaef53c33f9","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":127,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"9b603958-5082-427d-8962-b5c194a20e46","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":127,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"20ddb53c-9886-4870-8459-747534674a43","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":127,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"f91d6d5a-2b95-4d24-bcb3-eaec6f4061c4","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":127,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"d7e5c30f-12b5-481b-be51-f3188e2e5551","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":127,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"83a0a9a6-a16b-40eb-bc5d-034f9a58a38c","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":127,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"3b1b85d9-2c0e-49f6-b93a-39b4131d9711","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":127,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"85d7971a-8f1f-4f20-91c7-8f3f80a308dc","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":127,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"f0015e29-f2d4-4714-9109-d5cd2ac930b9","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":127,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"88dd209b-c5c8-4654-a7a0-c50aeea21066","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":127,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"3678234f-0c2d-4196-a680-9aecd3fa7e90","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":127,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"4e7517e6-109a-4caf-8fb4-cbb84e523e65","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":127,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"b2dc708f-127a-40e1-8893-18c8871a037f","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":127,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"2cadeea4-6523-4ef8-8546-f809252df5c2","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":127,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"b3b94f8f-8ee1-405f-8d2a-197101b7fcee","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":127,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"7abccbf5-ec29-4c36-973e-6c96955b6fd6","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":127,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"2d7fa10f-e6a4-4b76-8e7f-15eef8287a4f","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":127,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"04019ed7-7694-4775-9ea2-2d043d1ce3ad","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":127,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"822cdb92-386a-4989-9104-ea6a8f067c81","block_type":"box","text":"under management for BlackRock.","page_number":127,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"9c950fae-9c66-4a91-a79f-e0b2d2920e9c","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":127,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"9997cfb5-115c-4010-a2f1-02aa4d8c534e","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":127,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"740a35d5-9108-42af-94a2-84521df01888","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":127,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"241d5206-3c6f-496b-bbcf-6dc8c02a595a","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":127,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"61e555ef-cfb2-4e83-99c0-4456b1e612df","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":127,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"5c75330d-3d18-4bf9-b629-20fbd12049ef","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":127,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"364607c3-5c89-4762-b24e-31d8092a2731","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":127,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"c19a526c-bb3a-4911-b419-aacd9acd2c69","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":127,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"f9d566ed-1b84-4289-aa96-7e7ff2d0877c","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":127,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"273b68bb-4c11-4422-9856-670ce3fea355","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":127,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"c322f059-50a1-4174-bf13-388d40d7431e","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":127,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"8f26e358-06c8-4a10-b556-71549508f2ef","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":127,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"7bedd110-11fd-48d6-8ce8-460aa4ca1b67","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":127,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"855baf73-f0e0-4940-9f38-cfc5168111aa","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":127,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"de5d4715-8212-4422-a9a0-e28d013306eb","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":127,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"38afc966-4198-4c77-bf1b-0387ddb07ab3","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":127,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"1a8506fd-eefb-42c0-b684-47503be0af27","block_type":"box","text":"II-91","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f3598944-904c-4e3b-83ad-b1be5cf589be","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"030a4918-7d32-4c01-bea1-3952838bf03d","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":128,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"590642cc-c0ee-433b-a2e5-b4d4f5b924bd","block_type":"box","text":"any such fees or other amounts.","page_number":128,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"526f03b3-fab1-4efb-9021-fc27c49c8ff9","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":128,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"1ac4a52a-89b9-42e7-80cc-f1b3d1efd2df","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":128,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"29e87e9b-8204-4a1c-8944-1421094ae780","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":128,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"a6d6a35c-1905-458b-a94a-81bc51a57744","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":128,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"f94ad9ae-9923-4a53-bf84-27160f6edbf4","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":128,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"2843b2cf-f53b-4997-8b2f-c084195b8252","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":128,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"5585ee98-060c-4579-a007-feb019cd0528","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":128,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"2e5fe58d-4778-470f-bdd9-d7422efb1d9e","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":128,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"76f72f12-2045-4926-bb98-84cfc64132f9","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":128,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"af7adea7-4a4c-4213-a35f-39160985b60b","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. 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As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":128,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"55016a36-6b61-43c9-b1b1-4775c604d892","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":128,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"559830fc-c80c-49c3-b266-38158f9bd833","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":128,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"03245b8b-7d3e-4a89-9b12-b975dfd933a0","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":128,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"78a6a5dd-3a84-47d1-bb50-65208d22b56b","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":128,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"254ad813-0c48-48bf-96bd-730555cbb722","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":128,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"5829407d-5e7e-4094-a3d3-6404787befe2","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":128,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"cc202917-c6fb-4cb2-a40a-2b07ad900ee9","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":128,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"8bcdebe2-07e5-4518-8eea-cac664ed1d14","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":128,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"34214a9c-8f5d-43c4-80a5-8a098c24c52d","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":128,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"400c2159-059f-4a50-87d5-513ab183c841","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":128,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"1f757dce-4a2b-41e6-8966-df6a1f1fc612","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":128,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"e61d7b2e-5e92-4522-b2a5-52b627072528","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":128,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"aab84596-f93c-47f5-811c-af3b8a679307","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":128,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"7a2f3080-5097-49bc-a664-e4661ec9d976","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":128,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"41aefe0d-2731-4742-8864-0a9b3d18b974","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":128,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"a61fed5e-2dfd-4c58-95ac-85ba9ccd7c97","block_type":"box","text":"regulation.","page_number":128,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"0c189dd2-903a-450c-bc15-89f4516d6bf4","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":128,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"72f9630a-c1f4-4392-a236-46fcf7a0fd9a","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":128,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"f87fdc20-d3f0-4314-9f0f-b330137f9d0e","block_type":"box","text":"various program limits (","page_number":128,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"3acee380-baf5-43f5-942b-a0a2149d116c","block_type":"box","text":"i.e.","page_number":128,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"d4efcd9d-7b65-48d7-9c2e-ccb74201a8cc","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":128,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"a22991f1-405a-4ec2-b487-75a4b9a7874d","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":128,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"136a075a-04fb-4281-ada6-0c38697e304b","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":128,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"fa6e3fa0-2dd0-4814-ada7-f5b308f19139","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":128,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"cacf2196-b076-4b4e-bca8-a98cf493752b","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":128,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"7d8830b9-031b-4da8-b13f-5af2ab9fac5c","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":128,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"234e0117-a07c-4366-8cc5-faf447ab3d4c","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":128,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"34a02914-bbeb-4a85-b416-26681ba4ed37","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":128,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"de63b832-0b3f-4199-ae81-efc187946771","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":128,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"ba9d056f-d4d8-4a90-a6be-26866c17868d","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":128,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"1bf1a19f-faca-4c3b-a474-41c7b126eee2","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":128,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"49d15df2-3fa4-4b3f-9c28-317abee34e06","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":128,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"38ac526a-e345-4ead-9ef9-0877ce4fa51c","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":128,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"7406be39-d738-476a-93ed-b5e5b673c54a","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":128,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"3004dccd-438f-4ffe-ad09-81661a6a008d","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":128,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"a732a642-3a7a-4866-b9af-ce9759aeb957","block_type":"box","text":"II-92","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3281f91c-f649-4073-b1c2-e6b553e469ed","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df869ff5-3f8f-4f14-9f66-3ee07a4898c0","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":129,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"04a393b6-fd1f-4414-aa88-53041972923e","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":129,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"7066b60c-f34c-4094-9eda-3840da7ea2e3","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":129,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"3a290731-a3f4-4377-97df-c06d6b91e543","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":129,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"f314a979-32da-43ce-85cf-6c6a992dd248","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":129,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"19ecaf8a-48fa-48ef-86cb-870f278a3fa4","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":129,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"5c1558e0-74bf-4686-894e-c95cfc33b135","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":129,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"5c260367-50f9-4be5-9e16-508120adf1ee","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":129,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"75939f26-03d8-4638-889d-88c6fc72355e","block_type":"box","text":"than through client commissions.","page_number":129,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"76650ba1-aa77-4e8a-ba05-4b6a69e7e755","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":129,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"5e8632b3-cf95-4cea-b07b-64ccb8349e55","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":129,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"f7b1ef1b-661e-4ad8-8e89-396047a32e55","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":129,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"5127e6db-2a18-4f9d-a321-70cb22e634cb","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":129,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"d5391fd4-3a79-473f-a7e0-b8b0fc0376b5","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":129,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"b465549b-96da-4683-a001-74e71f3022cb","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":129,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"a014c7c6-29f0-4fcf-9dee-e58f30c13420","block_type":"box","text":"research-oriented software and other services and products.","page_number":129,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"aa1e7b35-0aa6-431e-bb35-2e9729785068","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":129,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"744344de-7f03-4a76-b513-e356cc828dc2","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":129,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"7c3591a3-1925-4075-998b-cbf94dc9419d","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":129,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"9f55a265-27b3-4389-a1dd-d716d0a97b90","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":129,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"d5b33d32-2ca9-42cd-a34a-5dabc4216f2e","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":129,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"efba60bf-40fb-49f3-bd63-2f61f8e918a1","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":129,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"8dca4063-8661-46ac-9637-57cb572e13ff","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":129,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"0a1b6d65-49e4-42da-a98e-dfb592a9da6f","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":129,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"0706cdf8-54dd-432f-8176-5e483c5b6713","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":129,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"5e86dfb8-98fe-4e9a-a9c5-340adc512c8a","block_type":"box","text":"and services itself.","page_number":129,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"f11725f5-d671-4462-91f6-0ffa173a8c02","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":129,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"ea52635e-4e44-4bd2-92a8-aa2a16b3d539","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":129,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"8f8df63c-46dd-4620-b548-d8b8c3564c57","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":129,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"863ea406-f0e9-4761-aef6-f435f946a255","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":129,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"a6fded24-3c79-466b-b239-b078320c3729","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":129,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"c2cf08e9-2f9e-4ef3-ac20-6b8b872b3986","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":129,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"efbf4b00-9170-47de-8941-380d8522dc5e","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":129,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"3a56e3a3-75d2-484c-bc4e-3b3fa51a1c7a","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":129,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"c06820da-28b4-42b5-a456-5581b0165175","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":129,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"4431bf04-270f-4076-9fa9-4c328f02934e","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":129,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"8454f96c-63d7-429c-b6a5-ee73bb3ebe09","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":129,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"b9e37921-5c4a-484c-9e2e-cef7040debfb","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":129,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"2b866611-71ea-49d5-9c07-f96cea484f0e","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":129,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"f4a7b39e-6628-41aa-b70e-5b274279078e","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":129,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"cfead659-2b69-4975-b2a8-42c892cdea2b","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":129,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"4213a11f-3221-421e-9e47-82d292b5ddcd","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":129,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"6e6cd3a8-03a1-40b3-8fcb-d58da8bc7faa","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":129,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"98063d65-6f57-481e-a951-ac0f79adf6e7","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":129,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"52484f93-fa00-465b-9258-c3a1341d328b","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":129,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"601fa8c7-bba9-4ed3-a276-8af877c318f8","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":129,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"70a47d67-c575-4bd1-9776-ff66112478e1","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":129,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"7280b817-3a9d-4f97-bea7-8128237229b2","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":129,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"00fdf553-831d-4f0d-865a-3bf3b0fa73ec","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":129,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"47f1ebbc-3d8d-4f36-ba17-ffa630558a73","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":129,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"52188be6-56e3-4f86-88b2-f1388024bf06","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":129,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"9690db09-35ab-4f81-ac9d-224b31df6f1b","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":129,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"14d72111-1c66-4ca2-bbc9-1392ef8dfee9","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":129,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"eb42f267-a00c-4a7b-86f1-a7a073c77096","block_type":"box","text":"II-93","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a699d0bd-eee4-4ce7-83df-2a74d51fdf46","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31caf27d-6858-4456-9675-7d5eb4d2a5ec","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":130,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"2bb718a6-f3b3-48b0-8660-7db5f89de138","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":130,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"2bcadf71-89ac-4fe3-88c3-3f2710d2e77c","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":130,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"5b7259e2-c2b6-4286-8e16-6450f32c9617","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":130,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"61555bfe-1b4d-43df-9681-8afa04c0f8bd","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":130,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"0317ce24-765f-40a2-8e47-1a9a2b20f0b4","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":130,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"75b1e7c7-26aa-4345-a731-aff3261757b7","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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BlackRock and its sales personnel may","page_number":130,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"2db86a3e-ff6d-46ea-9f37-3544738dd63a","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":130,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"fccfab56-f322-43e6-9f5d-bf109c48fba8","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":130,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"16293b3f-e557-45e8-b1ec-cd66727520cd","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":130,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"a9c04868-d3ba-4552-8e3a-573033c22e79","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":130,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"7a735bc4-f421-492b-93de-2d691191fa22","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":130,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"90e1917c-03cd-4b20-90bc-9fb18a06dd3b","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":130,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"f219aee1-31f4-4126-a774-6d3d864f488c","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":130,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"2999e5d4-c4ab-4e01-a759-5929c4133760","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":130,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"3d7bd9a2-b5ff-4883-a2a9-2565b3b722f1","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":130,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"27d55195-ee3f-4ac9-9334-9bd6370109fd","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":130,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"19fbabf7-8ede-4b99-896e-41c39f37240c","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. 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In connection with any","page_number":130,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"32e5e03c-1714-45d1-af03-0f4896c9e7fc","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":130,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"ad4aef4e-323f-4c1b-bf3a-ff7c8185e244","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":130,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"9ac40110-aca0-470f-b15b-6af80bd55391","block_type":"box","text":"some additional expenses.","page_number":130,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"678b73e8-1a89-4a6c-91f3-95374a719821","block_type":"box","text":"II-94","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d9bcb375-43ad-4b30-b91f-2c0eb1aa44c7","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67ee84c4-6b47-4894-ac33-95a27333d529","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":131,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"72643f0d-2627-4c96-8f24-9876bc56dcf0","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":131,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"ce8a5f4b-c313-4bc7-bd7e-59be5d32cb87","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":131,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"2f433564-2e11-4474-a35e-f2699d612ecd","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":131,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"610cd135-fd61-4c90-9620-ad22fba4ff8c","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":131,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"1614c2e2-ff75-444a-a9f3-f253828c5028","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":131,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"0ee65601-1f5f-44a3-875e-20f5629977bc","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":131,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"5010fcf1-434a-41b3-ad66-49b58e5652d6","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":131,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"9595b46d-8974-43ad-a47d-311549cecec5","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":131,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"a8d797ae-82fd-44a3-bf8e-eb023658f4e9","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":131,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"2d9981a6-ca74-44f9-b0c1-7027e4bef184","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":131,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"1002b186-fda9-42ff-abbc-494853f50e00","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":131,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"93bc0f53-d10b-4bdf-9b79-ea7054e76de7","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":131,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"fe6cb735-3c82-4078-b850-c5b3e643282a","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":131,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"7f1fb971-33d5-4f3d-80f6-9865b3d75575","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":131,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"8286f597-46d7-4f96-b5e9-07ff568d8619","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":131,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"015f867e-d91d-4498-bf91-318985014839","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":131,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"b298dcdb-1efa-419e-975d-b2d2cda6c01e","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":131,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"e33138e2-2abc-44ae-af31-dee035b024c1","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":131,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"5e7e525f-9d09-47b9-89e9-835e485a17d7","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":131,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"bf9ebcc0-51d2-474b-bbee-8d6ed707111b","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":131,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"e90f2700-ca90-4977-b9e7-8afc9d764122","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":131,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"846693ef-dc38-4596-9f91-dc254870606e","block_type":"box","text":"public information about the company (","page_number":131,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"9278498e-43fa-468d-be0f-85dfd4cc87e3","block_type":"box","text":"e.g.","page_number":131,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"0d01c050-e861-447c-8bf2-116dc5919086","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":131,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"20e75adc-44f9-424b-9c6d-70718993e82a","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":131,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"7034f053-f539-4e99-a4b0-a72fdbe07bac","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":131,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"e74c30be-6e64-45c7-a010-c773b571659b","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":131,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"f8dc18f2-6b90-48e0-b54a-4d0f8a1e3d2e","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":131,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"8ad0d829-56bd-4a3e-8ea0-b3e13d618fea","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":131,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"fb7eac07-6206-4eb0-ad5d-16d2c95b71e8","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":131,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"d3a569ee-ecb6-4a39-94c2-36569c314641","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":131,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"b2615f24-c453-42e4-9f5a-2d805eefd1be","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":131,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"c81c563e-1587-4a56-9b11-bc1223213e42","block_type":"box","text":"of the issuer.","page_number":131,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"615a8f3a-91f4-4cab-8016-4eb80d01b28e","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":131,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"7b6a5865-c55a-47c7-98c6-4652dbeb5405","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":131,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"d99f7e71-473c-4c3b-935c-db7f4ce68fcb","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":131,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"32aa9d52-df60-4a99-8ce8-158b017be6c8","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":131,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"3fcc7869-e6be-459c-8695-2d534b85f4a1","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":131,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"198ef439-a858-4aea-ae45-7818fa73e4c3","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":131,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"515a90c4-216b-41b8-814f-2e9983210eca","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":131,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"df3504a4-68e0-4041-bfe7-3fd3ee43ebe2","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":131,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"e55e0516-e31e-4278-ab5d-5c1e317fb7ae","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":131,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"8b5606fa-ae2f-45eb-a112-0e81f042cc6b","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":131,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"a01a9250-ea54-4b43-a32f-1f5783189558","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":131,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"3b66d84c-ecaa-46ff-a687-b8eb372df970","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":131,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"e54068fc-2526-42b7-87ec-41c3588427a0","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":131,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"0129f618-e391-43b4-88dc-26e090cdcce2","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":131,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"e4c686b2-0b5f-4bb6-b3e8-7a81cbbc41ac","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":131,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"d396ed71-7b07-4b1b-bd4f-1d51879b8c00","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":131,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"1c658803-87ad-41b4-b53a-53d594068e27","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":131,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"0087351c-a2e8-4a15-bb97-8fc7c943a270","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":131,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"4d7c0dbc-dee7-4af8-ae49-26340b20982f","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":131,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"e0066280-5dd2-411b-8285-e6ce7bfee98a","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":131,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"204d56fd-a7d1-42ac-b1a4-c081581b20ad","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":131,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"51aa9181-6de5-4098-8190-181cfd92f885","block_type":"box","text":"II-95","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"71124f27-5151-433c-b0ac-0f24f7089641","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"48295cf3-5c69-403a-9ee1-d524df7d126b","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":132,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"60bc9e26-c056-45ce-8a3f-693e01bcfb71","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":132,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"7a7b0efa-7118-4113-88cb-9c76f12beb85","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":132,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"1198ab7a-3b55-419c-bd37-c5e7319d668b","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":132,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"86112bef-d57d-4041-830b-cd7e3c4216fb","block_type":"box","text":"a barrier.","page_number":132,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"354eac54-4ffa-498d-b0c5-65a964dc9b46","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":132,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"6a06034d-7a59-4ca3-a5cb-c8eb3d055748","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":132,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"327916f8-bb7f-4f20-bc72-99faeead170e","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":132,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"2f92983c-7602-48fb-b899-b8f4c5ea7c8d","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":132,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"7fbcc023-7cc9-49f5-8016-fff752548a14","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":132,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"2bfaf2c2-0c18-47ec-ac04-11403d9d3540","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":132,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"4c44a36d-2a02-4707-b5dc-d4132db600d3","block_type":"box","text":"that operate in certain industries (","page_number":132,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"e6e2ab53-a548-4560-9cbf-488573a39226","block_type":"box","text":"e.g.","page_number":132,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"e7333a89-0a10-422e-9f88-1a09c915567f","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":132,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"7e96b9de-ce2e-4a5a-9f50-9161019a208e","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":132,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"2785d458-61b8-408d-b8dd-14298faaeef0","block_type":"box","text":"e.g.","page_number":132,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"82fb39c5-b5e0-4b1d-9926-fc051f2846a4","block_type":"box","text":", with mechanisms such as poison pills","page_number":132,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"0749e6e3-fd5b-4cfe-a4e0-db129de2514f","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":132,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"d0484c31-599e-43fc-91f3-fbdc416f514b","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":132,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"f533609b-46ae-4196-a39c-91a79b5e8ecb","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":132,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"90459ab7-19e9-40dd-8bf9-57aacea4bd4a","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":132,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"62318d37-2861-4ebb-9ef1-dbf9cf94f39e","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":132,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"798085ed-ebad-4f9a-81fe-df983902ff9f","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":132,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"4fa11488-4889-4caa-a1ed-1bba6201cdee","block_type":"box","text":"seek to make indirect investments (","page_number":132,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"9e1717cd-629a-4675-b027-6ce3744452c1","block_type":"box","text":"e.g.","page_number":132,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"7d1795d8-70e4-4e69-acbc-7233e2bc0cb7","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":132,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"7712379a-8ca1-401b-b523-beed5cb08a86","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":132,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"7491215f-bd68-44b6-ab74-47f83dc34fe3","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":132,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"0438439a-1446-4821-b051-7be8bb0a2dc7","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":132,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"149dd742-1ea5-4947-bfbb-204b32a03810","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":132,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"92f099f0-450d-4288-9b83-5c24595274f4","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":132,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"94b4806b-50ed-40da-8a69-479014e6ba7e","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":132,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"98ca9b93-54f6-41f8-b791-f69a59522c17","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":132,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"e0686937-3528-4257-977e-f8459df3549e","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":132,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"a1e6d283-8b88-44cd-a352-788bc0817024","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":132,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"26670fa7-ce02-4fe1-a5ed-6d65994a33f2","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":132,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"046ae71a-3e29-4af4-801d-3c62076c63b0","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":132,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"c96e3ad5-6399-4857-9c33-25a20f4d3689","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":132,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"1f8ca367-3cd0-445d-b0c8-297b6adf5cb1","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":132,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"6695d255-f46d-4207-aaba-f956a31c42f3","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":132,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"78a2e273-058a-486c-ad76-51ae069b8dc7","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":132,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"ca106343-0dda-4431-ba7e-3a446a721766","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":132,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"421537e9-c22c-4eea-b905-c940ca2f4e2a","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":132,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"d978d4cd-8ff2-4a91-911c-95b0ebbfc804","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":132,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"fb1c11c6-4cbd-4257-abf6-5d89e8bd536a","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":132,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"6c8a86bb-c05a-4199-8402-e0359b4cebe0","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":132,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"d7303517-e146-46e6-9a7e-ed0617523f9f","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":132,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"067b4986-fdc6-4bf0-9960-78374d8a4a2c","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":132,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"71a5c91d-242f-4007-8911-8cbfcf5659b4","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":132,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"a71a0507-01e1-4968-af91-70ec1046a09a","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":132,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"0e8b1de2-2fb9-479f-a674-2e49a6e7bac9","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":132,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"555b9eeb-b9fd-425e-9dff-4d3ea881ca3a","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":132,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"4f7c654c-227d-4663-9936-ba86fa408b5e","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":132,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"8ff70a65-1291-4786-8285-b96da27bb91a","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":132,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"9ec7b57c-d912-4990-bc49-2f95cfe947bf","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":132,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"6690eaeb-9b87-4203-bce3-19ae6d55a672","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":132,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"adfec8d2-306e-41cb-9c33-c082e6877802","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":132,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"8c94a04b-7bcf-4e95-b024-014c96321159","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":132,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"fd189533-4362-4c83-97e0-5a5252e298d7","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":132,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"d854eda0-f253-4496-b479-20aaa48a8720","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":132,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"f90f7c67-de6a-498e-b773-b9828499bb05","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":132,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"781cc873-a326-45a4-8292-61027e47a6cf","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":132,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"6d51d6a0-40ac-4de9-9baa-76f7d840b6a9","block_type":"box","text":"II-96","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"876c6d63-b996-4af2-bf18-e45f78910e47","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae9d44fe-2b1e-47bc-8c63-3369b40ee48f","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":133,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"b60d549a-6801-48ff-87e6-cfd896e99b76","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":133,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"010e4e8d-d335-4c0a-9638-6ecfee19f62f","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":133,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"f3e27395-7694-4e17-8a1f-0af1f32914ce","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":133,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"c1ae3ab8-bfb7-4fc1-ab00-3874a15aabff","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":133,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"e1a2bb0e-749c-464f-a8f9-0d17f9c08085","block_type":"box","text":"strategy with respect to such security or asset.","page_number":133,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"dc95cd87-1c91-4bb9-b26b-311699fb3850","block_type":"box","text":"BlackRock may maintain securities indices. 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In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":133,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"00e42579-68eb-412e-97df-6b103193d6cb","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":133,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"48600871-fb62-43f7-9983-32d0d713b9c5","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":133,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"68a679bb-884d-439e-bd45-880cae4f0731","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":133,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"b1db108e-f631-4760-b902-64ac89351176","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":133,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"905f58b6-747e-4e00-bd68-4de049cbd86d","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":133,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"a0cef2a0-0aff-49ae-97c9-8e30977afb60","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":133,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"7029921d-e62f-45d5-9527-f900fc236f02","block_type":"box","text":"e.g.","page_number":133,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"4b963857-524a-41f2-8f7b-41f433e43408","block_type":"box","text":", custodians,","page_number":133,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"ab4d8f81-f283-4c7f-be2e-95dd6b242ac1","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":133,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"e285a7e0-1210-4908-9def-e70c0e799592","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":133,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"c470faff-edff-4084-8389-9f4082ce416b","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":133,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"e189318e-5a7a-406c-a676-7423c7a032d0","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":133,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"cd644e30-f4b6-41ad-9573-d65358d082bb","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":133,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"e5b494b2-bc60-4af0-82bb-02ee093968c6","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":133,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"41558f5d-1b35-4b95-a84f-22a1350c7287","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":133,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"d93626e5-e403-4d9d-a592-24cfe39e60c4","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":133,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"bd8970c1-9822-4fa8-be5a-f0e179fb9a65","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":133,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"3aabf383-e66c-4df3-b8a7-2fb51311b8e7","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":133,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"4ee769e9-104c-4c4b-bfaf-eeaa163efeda","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":133,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"90d1e315-a222-4abb-87ba-7a8576d2ef2d","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":133,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"e542dd11-f67b-4231-9197-d956f950f469","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":133,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"d7450e50-9643-407b-a70a-2c87c4931675","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":133,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"36bd49e3-28cb-48bd-8262-ea6b582c34a8","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":133,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"b88efdd5-3beb-4948-89fe-5f8353fedb22","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":133,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"80be01c2-cd3c-4211-8af2-d2c64667d0f1","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":133,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"d2bb7695-b2af-4a4a-a29f-bf29c86678ff","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":133,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"e2a9c943-320f-40a7-93f7-4a014d9d9577","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":133,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"c712bc2f-34c6-4b1b-8a24-6b2adf88a0b9","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":133,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"14197472-af1e-46b0-9200-af2fe452d421","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":133,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"864a7692-8d3e-4a8e-8843-fa5d230d3f3e","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":133,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"929660f5-5631-4e7b-99c8-97e49200bf3a","block_type":"box","text":"provider.","page_number":133,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"fa290b63-55d1-4b6f-8a5a-6c0d2bc079c8","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":133,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"fb22b4d0-3b83-46a1-9047-892559732805","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":133,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"ddb4f940-99da-4c72-84bc-a9deba46c881","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":133,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"51b45418-d42f-4fbc-952d-d25fae9dfa28","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":133,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"e7719314-9674-4d04-9f6e-f5166e5288a8","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":133,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"1d18229c-fb29-435c-b78d-db975f05b75f","block_type":"box","text":"PURCHASE OF SHARES","page_number":133,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"22636e98-1a43-4573-a82a-61454c409f50","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":133,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"e83a2e07-668b-45d0-a123-fb17a0937fe0","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":133,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"0d3aae88-7527-4931-b673-100cad4bfec0","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":133,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"bcbe587b-0ed5-48ee-b3ee-f11fc5e4a4df","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":133,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"ca9c4820-3824-4b7e-914c-073ced6e3c5f","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":133,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"d74b99a6-e4ad-4790-9c97-088f89d1d8e6","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":133,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"a010abbd-7c4d-44e0-8de6-c2dc20d4ad33","block_type":"box","text":"II-97","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"28c9e10d-089c-4ae7-8a66-66ad3ddfd386","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"693a8989-60a8-4554-90eb-968611fe8bd6","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":134,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"fb493b2a-2a12-429f-a2a4-8197b3f958d0","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":134,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"6184e0fa-9678-435a-bafe-bd0518602f5a","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":134,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"93b8212a-77fd-4f40-bf8f-8f3a9d235053","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":134,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"48151f00-89cd-428a-ae68-21115a601e4a","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":134,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"d7f704eb-2314-439d-bb24-6b90f0938275","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":134,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"9d209a09-b08c-41a1-b0a3-f94a634c4aef","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":134,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"cc756188-43b0-4751-8452-2969ca091762","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":134,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"0e0c6a0b-138b-451f-abd8-07ee51103565","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":134,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"ee3726f9-5c8d-4bad-930d-b34c27065f43","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":134,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"38d10c48-f5d4-4ab4-b88f-32717f2251bc","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":134,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"11d0df49-06b6-449b-8975-cc597e495734","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":134,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"fb655fa3-9316-4c00-956d-4fa5a30e6e5c","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":134,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"4e3363d6-5c2a-4561-88d2-e31d8711fe0e","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":134,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"43c3dc20-d745-4163-9d78-1fea45485178","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":134,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"2c8c2148-a0bb-4981-8737-227757174e8b","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":134,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"80247e36-1886-4dff-a6ae-878f67f93ab9","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":134,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"dc90d5cc-70db-4cf7-a942-32aa75dda409","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":134,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"6b6fff2e-c2ea-42ef-866a-2734d361dd25","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":134,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"0f936036-c7c5-4622-918f-f10f13e81394","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":134,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"8c66b692-2585-49d4-aeb7-055ea1ae2fa1","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":134,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"fddfcd3d-380e-4bf1-8b7a-4df80b9fb9e7","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":134,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"27de7365-4b7e-422e-9026-dbdaaecdf6ce","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":134,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"df69d75d-5064-450c-9613-a25ff883fe73","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":134,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"a25dec67-4fdc-458e-bef3-8bbcac5e7a51","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":134,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"b90634e1-4fa1-4544-8e98-ae2a887a8868","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":134,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"7b427e09-393d-4f82-9d5a-db42045530d1","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":134,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"eb94e92b-287c-403d-b73b-e845a35ed327","block_type":"box","text":"investment is $25.","page_number":134,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"47f6cfbe-0e20-46a7-8b75-14a828076e0f","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":134,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"cfb57f82-4695-47d6-ae4b-d33ee73ba4e3","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":134,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"7c676ebe-49ed-4d61-a0aa-e0c04e46080f","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":134,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"27125feb-744d-422b-a787-bcd70ef66519","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":134,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"dad8532b-e297-45aa-a59e-10b569e30f40","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":134,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"33b39269-405d-4d99-881b-3f48805695a8","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":134,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"bbb0cee8-ffef-4d5a-bfaa-30000eb7bdf4","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":134,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"e7ead1b4-a0e5-43de-83fd-2e486eb48644","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":134,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"4f070f59-0ce6-457d-b57f-6791edc6834c","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":134,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"31e8e270-d664-4130-9b20-454e38f87773","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":134,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"96036d70-f0b3-4a92-8ab1-052a112dfbb9","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":134,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"d72629e8-a84b-49ee-8288-bda92bab6b11","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":134,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"c5548cb6-d248-460f-b29d-409e7a315d63","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":134,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"b94d317d-8361-4220-bb50-31fc46e04d06","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":134,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"0662d2d7-61f3-49c3-ad3c-a4d409ad8c8a","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":134,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"1e74297c-9c7f-4490-9c61-a5ae40f276d2","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":134,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"9d1af8a0-a0e3-496e-a582-844221c07629","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":134,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"3f097f85-4e7d-4971-9e92-ab743f5f5a57","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":134,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"deacaa6b-dc01-48cb-9355-58ba8c315267","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":134,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"cdbac7bd-dd0c-47fa-9561-4d46fdcdd8dd","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":134,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"6c87cc29-9b5c-4b9c-a2cd-8ea06cfa5357","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":134,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"680df636-9733-4cf7-9c6b-98b5f5e80a1d","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":134,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"0647ad42-d649-440a-a8b2-26296457b2f0","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":134,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"e09edfdd-d62e-41a3-ae75-e0165e5a56b2","block_type":"box","text":"adviser.","page_number":134,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"15ada218-870e-4f4f-83f4-77cde007d64e","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":134,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"458d8b83-832f-48ab-bb65-6d564fae223c","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":134,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"5351d937-f7bd-464a-81a6-844bc4d6383c","block_type":"box","text":"II-98","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"422e582a-2576-47b2-8daa-5b56f629bdee","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"52c89831-f75a-41c7-b789-81767661a48e","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":135,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"c675c546-45d3-4252-bcee-439bbbb68d97","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":135,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"7b0cdffc-42be-4e52-966a-9b55ef42b23a","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":135,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"c0bf9b0d-6200-44ac-95f2-a5a72932c5df","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":135,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"8f544a5f-59c6-4997-a702-9d633fe9f612","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":135,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"9f4143f7-6fc6-41e0-bdf2-6471447a5fe7","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":135,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"e914df59-7db6-422e-bae7-30d6e5fccad0","block_type":"box","text":"also be restricted from making additional investments.","page_number":135,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"888c6e2b-efd9-437c-8537-ae744a3d1057","block_type":"box","text":"In-Kind Purchases","page_number":135,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"3bbf6c75-d823-42e2-8e5e-4ecbac9aedb1","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":135,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"c743dacf-f925-4efe-b8d1-8c3a8bfdbecf","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":135,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"56faf4f0-0886-4a1f-b800-573da65a4885","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":135,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"1e0088ff-0c93-4e6a-92d3-c64c97b76f4d","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":135,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"9cb09d85-75d4-438b-8074-44fef20ec9ed","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":135,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"7ce4b4ef-1d60-4cd8-9cd4-ad821c97aa86","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":135,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"748087a5-ecc3-46bc-80f9-95a2d6ffd993","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":135,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"d753cb59-5a82-4ed3-88dd-22239b4ac215","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":135,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"ec7f3458-7182-4a03-b37e-725d0c34d2aa","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":135,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"8b4cdd1f-c9e2-4f2e-8660-33c5b47c84d7","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":135,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"3f54e6f4-0b25-4afc-adec-0a2bf27fec95","block_type":"box","text":"has settled.","page_number":135,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"2dbd7b64-530f-40c3-92fa-b03af8270346","block_type":"box","text":"Institutional Shares","page_number":135,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"cd8a0793-4c8b-4dbe-a4c6-c14e66d8c948","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":135,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"ef4f604b-2006-48e1-900f-b391a1ae9980","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":135,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"57db7a88-a902-466e-a982-56fca764a062","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":135,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"419f3374-7d4b-4510-895b-b36839f6f5ba","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":135,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"56a7d349-26c8-4554-afd8-b773f4bb524b","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":135,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"02439b29-b9b3-45b6-b874-e7822d7c63ca","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":135,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"7a2d98da-e1b5-4952-94e6-2c3e95771ded","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":135,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"05479385-48c6-438a-b79b-bd98effb52ae","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":135,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"1dd1d6c9-1aa0-409b-8df7-0fb0945735f7","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":135,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"95fb1d96-da2b-4f02-be4a-28e361f16c2a","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":135,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"3d5c2646-420e-4bbc-9bb5-f1afe15242fb","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":135,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"dc4c1646-00cc-4b1a-b5de-aa1061acaaec","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":135,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"78f7dd67-fdfb-4ef5-ba87-b0ab0e3ce5f7","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":135,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"5c051fe1-a307-4ad8-b4fc-2a26d3643ef5","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":135,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"b5f36b18-0b03-4263-85b4-a0e11e297d9e","block_type":"box","text":"these fees and conditions.","page_number":135,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"b22d06d6-8e2e-4c57-b416-9696be2d4a72","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":135,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"da15f4d8-f59c-4aad-a115-f48bb0f04ff3","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":135,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"17a52ad0-7c38-461f-be40-62d8cca7524b","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":135,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"15f40af0-ad87-45de-a3c0-37299f6e0fd4","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":135,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"76f4b083-8e20-4d96-a6d4-3d710f5a2ed4","block_type":"box","text":"incurred by the Fund.","page_number":135,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"3eb8555d-ae9f-4104-9a1d-5e34ee7fa250","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":135,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"919bd6d3-43ae-4ff2-847b-eefec744ecef","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":135,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"faa20097-3b7c-4d4f-9e9e-831b8bc0ae66","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":135,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"51e01e1e-6b8e-4384-9814-6fd8003787bd","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":135,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"c723a571-20f2-4b32-a3f2-80784332b3e7","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":135,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"bb970257-6176-47de-afba-099fb718795f","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":135,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"65967b12-15f5-4987-af2e-e6fb3802b6b0","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":135,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"135be992-a768-4857-b90e-03911d0e3e82","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":135,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"d592cba0-3fd1-4668-b404-e8562cd98f46","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":135,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"a4a25ca8-4c45-4596-8bc0-f0233574599b","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":135,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"23921daa-24bc-4586-b0b7-3d6465ed01ee","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":135,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"df1757dc-01fc-4f05-85f0-c3875f4b61cb","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":135,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"f50b91dc-1688-46df-9f33-45c87e1fc9f1","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":135,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"fe9a6f75-57b1-49d2-b62b-325d417586c9","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":135,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"37d13cb7-913b-4fb7-bb90-146f6c16da8c","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":135,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"1a05f634-8f97-4efb-b982-48860e2ae6b6","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":135,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"bd94310e-4112-4b54-81ed-756ceabb541f","block_type":"box","text":"II-99","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d660fa3-71fd-4df0-bb61-2aa48d599c08","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd5cd90b-f565-4c1c-b2e1-87a056a010ca","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":136,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"1005f3fb-eeda-4e25-aad4-6fa28f3c2d93","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":136,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"a1dce2e6-c40c-41f9-8ed2-deab89335318","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":136,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"e9387bce-c62d-437e-8f9d-86503c358f8d","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":136,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"bad87b48-f9fc-4e09-9a16-8da347feace9","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":136,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"7b64281e-0937-4b24-81f6-9f9a90086eff","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":136,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"148ebc31-fc21-49a8-a370-512b7a88e722","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":136,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"5c4975de-0b42-41e7-b540-00af9cd0fd62","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":136,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"a658b5e0-98f3-4c08-b76e-dfa14a0de59c","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":136,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"0b3ec882-6f07-426c-983a-e5389250503c","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":136,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"2717f0e0-d26e-430f-8887-645795e65d71","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":136,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"7918b51b-8747-417a-a4c3-b4dae22d335d","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":136,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"0617113f-8e75-4f16-8519-5866ddff0ce5","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":136,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"1e37295b-bd99-430d-a0ed-1696b3642ad0","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":136,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"079256f1-5428-4e68-818f-78907b52da45","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":136,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"23db2022-d9e0-42b9-a45d-1c07b1b207fc","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":136,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"1a495916-f077-4d74-bda8-d3d75c6ecdc9","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":136,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"9aaeb8ae-c132-46bd-a17d-57deb8f1d8ac","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":136,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"8f330c64-99f4-456d-9f2a-33ce36923ccd","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":136,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"6193c9a2-97a4-42fb-b86a-e6f7fe5328f8","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":136,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"9d6f24c5-b1b5-45e1-9ec9-883166965671","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":136,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"f4d2bd6a-eabc-41b2-9921-ca7acb0823e9","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":136,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"b9b83c56-044d-46d1-8219-afa3adb524eb","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":136,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"35c1272c-964c-48fa-a316-fe0155fde32e","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":136,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"9fae8d4b-2d51-45e3-aebd-b830af9fbfed","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":136,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"cd8e6c8b-cd33-4ceb-8a3a-3673e61a2e66","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":136,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"667716db-541c-4f7a-9ec3-a25e50640e6e","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":136,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"95b2fcc6-644c-453b-8edc-f923c3a84631","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":136,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"4701cdb9-f210-432b-a30c-18e15cc76ca5","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":136,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"609cbd76-a61d-4646-a0a2-f4d5d4e89c06","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":136,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"edebb096-febc-4c1b-ac12-b69c6db9ba59","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":136,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"edf9be35-650f-4e0d-ae68-bcdc8503c5dc","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":136,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"309d87f8-86b1-4743-97aa-c76dab665458","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":136,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"6b70c8a2-3f9e-4d07-8989-701f6323263f","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":136,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"3eca07c1-b29d-4739-a4f4-fdb7431522e8","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":136,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"83ddf7e5-baa1-4320-89a4-98e0d1ec6e27","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":136,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"fe7cfd2a-5e94-4fe3-aa78-b38cbab3c515","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":136,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"6691cebd-af57-4c50-82f4-23c056e0b0a6","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":136,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"ed0abceb-0250-4c07-a3e4-69d4429a0a06","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":136,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"e7e3f606-44b8-44c8-beef-e319808d9655","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":136,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"8f29447b-02c7-4ec5-878e-de10bc8554f4","block_type":"box","text":"periods indicated.","page_number":136,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"2fc19b2b-8119-4b5e-9e19-8886ecfdc213","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":136,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"880ddafb-be9a-4791-adad-3b4a26d8a260","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":136,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"ce57c100-5ca6-4f78-8725-52410ea94619","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":136,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"43093858-2061-4bba-94a8-9ff60e730460","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":136,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"d472ad1a-75f2-49fa-b22c-8ce6a3aa724e","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":136,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"931bffe9-4a23-477e-a68a-5f45eee36434","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":136,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"200dbdd4-a236-4b96-bb94-dc0fe9c9a12a","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":136,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"57ac3347-f6c8-43af-805d-a3a2a79174d4","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":136,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"f7542536-6507-4530-9595-e8098b631e41","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":136,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"f75bc659-069f-4176-86f7-bc78f38b8ed4","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":136,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"54c71687-8c01-48b4-b229-b44227ade40b","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":136,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"18850b03-8d0d-424a-b0bf-a4eff0e6a15f","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":136,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"d2ae3d67-7b4e-4a64-8407-70978cd97534","block_type":"box","text":"II-100","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d5ea48da-2177-421f-b94f-b09fbf297e22","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d77d416d-d141-4f38-9af5-7361a6808b84","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":137,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"76ad0213-e7aa-47b0-b562-1ca79be4002e","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":137,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"5cb196c9-9282-4a69-8dab-87e82f46a14a","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":137,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"0220a607-06b4-458a-a51f-fca66b73842c","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":137,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"1ba9014a-9bf7-4499-9411-9f566b148505","block_type":"box","text":"Reduced Initial Sales Charges","page_number":137,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"7df3126a-c3e0-4de6-bdb8-020fc29063f6","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":137,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"a270cb77-df6f-4a2a-914d-acc459e20248","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":137,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"847f12c3-de62-4566-b2d2-b2677eccd878","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":137,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"82f83202-3a98-4289-a62a-aae1d2203ad5","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":137,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"816426b4-b4c4-4d28-a9e5-ce1870d15d99","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":137,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"c39c0937-c51b-4221-beb9-6e4504759a42","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":137,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"ebb2097d-cc24-423c-87f6-c5a8cecdc467","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":137,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"95139bf3-7a94-4d32-a5cd-234bfc642b37","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":137,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"647ab4df-39d7-4d1d-acc4-714fc4faa48b","block_type":"box","text":"Reinvested Dividends.","page_number":137,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"91cf0c2e-f877-4472-a63f-a2b2dd1c50a5","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":137,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"e2d7335e-2307-4e87-8d2e-c182dd7a74c4","block_type":"box","text":"reinvestment of dividends.","page_number":137,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"b633bbee-326c-47aa-ae1d-1e69f8d056b0","block_type":"box","text":"Right of Accumulation.","page_number":137,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"0edcc237-6d88-4bc0-9dd0-d466a430115c","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":137,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"721f082d-32c2-414c-9fba-fbf79c26e850","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":137,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"3f686360-30f4-43e6-bd5b-1d88e7088459","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":137,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"5de06a5a-923a-4d72-a461-5acb5e9168ad","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":137,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"4694b82c-2258-4be0-a2aa-e7c10b17827a","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":137,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"dbb9821e-fbeb-4ddd-8dee-e598aa40f122","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":137,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"7ed4eb31-aff0-4338-8a28-e55496a4e982","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":137,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"aa281f0d-8825-4e08-8ecb-c7f6d2eea6c1","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":137,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"8a7a2fac-3e15-48da-bed7-6990141674e5","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":137,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"f9d3af33-9cba-44b4-9a56-887fd5b0e6a4","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":137,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"8426e6cb-e35d-4c92-99b4-f3af6be7f94b","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":137,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"e63858f7-3a0c-475c-8ddb-21e9efe8e7ff","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":137,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"e3835e87-a0fa-4b7a-8095-7e4a51e14ab6","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":137,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"de344b9a-7e0b-489f-b4e8-9acd4d8ec5fd","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":137,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"a0f9bde4-622e-46e9-a5a7-a13043172c5b","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":137,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"9c986033-3161-4ee1-b824-423a3d60c69e","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":137,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"9f8a0e07-39cc-4ea8-8c73-77c819653e02","block_type":"box","text":"Letter of Intent.","page_number":137,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"b696045a-b8e3-4228-9984-97c7c4061949","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":137,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"03849de9-e6e0-4c8a-a04c-55eee03ce268","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":137,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"00e461b7-bb0f-41c5-ae0d-c2370d8757ea","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":137,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"1fafbea4-e5a5-4008-b828-32fb7fea721f","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":137,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"a854cfd4-da56-4ca8-bef4-d2d7703df9d3","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":137,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"ae224440-bf9d-41de-959a-dd1da9a63229","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":137,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"bc603398-1119-4475-8d85-ce8f71d9e650","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":137,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"92fc6e4c-0c57-4332-94a8-ad8585217a34","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":137,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"3a5e6002-7278-48d6-b8b3-57732a211e6e","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":137,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"064400d0-a75e-467e-bc6b-296e9f005afa","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":137,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"4092a19d-e799-401b-a895-d985441899cd","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":137,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"4b459ec9-d789-4f68-ab71-fd5c51bd375a","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":137,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"618b519e-7113-4409-ba0f-76560b48f6f3","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":137,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"d0ce861c-ae7c-4506-a351-121dce389067","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":137,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"79a38811-3c43-473f-8422-49d3ff27ebf3","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":137,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"97982e4f-601d-4ea3-8dc7-ef2b45d27eb5","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":137,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"1c91c311-33cf-4ace-a79f-74d55e8585ed","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":137,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"f6825739-b042-4b19-9ba7-ebae2a5ffd69","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":137,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"7308d833-c970-4e05-90a9-9ba960278aec","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":137,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"b64f8d6f-a3cc-458f-9c3b-532e494e6b67","block_type":"box","text":"Placement Fees.","page_number":137,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"4d3f7ff1-2d26-49b6-b4ab-36ad7e2bf3cd","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":137,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"36e9bbab-e398-4588-ab15-b166266b6a5e","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":137,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"7683ae78-7378-4128-8448-9317340352bc","block_type":"box","text":"II-101","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bd10f745-ff62-4a2e-a1fe-2bd2640e94ab","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f78b9db6-a165-49ae-a6b4-eedbfa589c62","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":138,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"86928a4a-3b8b-4770-97fe-9407f6e3925d","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"a4959372-ace9-446f-b40c-d119e2c1272f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":138,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"3bda6f78-f070-4d28-8146-2c8eebf79f9c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"d07327fb-781c-4054-9185-cfabb19c4e1d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"5c379053-8db2-4a46-9495-cd55e1448d65","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"9d050ec9-1706-448d-ba36-c0e3ef8eb20d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"518759d6-db8c-4a5f-8e03-8c04cb246fe7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":138,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"65b0a4b5-166f-43c3-9b07-05bf957d77a3","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":138,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"8c11b2c7-035b-47ea-adab-075c4f3958e3","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":138,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"f2b472ee-4bf8-405c-ae7b-018534711421","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":138,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"ca4f6728-8b4a-4bbb-9b85-131bd4c4e5ba","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"787cd1c9-cbaa-48cf-89c7-673d4d0ef5de","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":138,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"980bfcbc-a58a-4a06-9390-4a17c545c8c1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"4d0d5c15-8413-4b24-b226-8e013c9c189e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"28c04724-3092-4bdb-abd5-764c4602812a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"4c0944f8-5775-4f13-8240-257781348013","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"21125c8f-f337-4054-bc01-7544fcca694b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":138,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"e19845c2-29d3-422f-aff4-2cf2e03db961","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":138,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"7c271727-5a25-413f-9b15-71622cc16315","block_type":"box","text":"SM","page_number":138,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"91fcd88f-acf7-4070-a1d5-f696cafdf317","block_type":"box","text":",","page_number":138,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"fde69abe-2951-4f89-bafb-9e2f6808dc8c","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":138,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"ad805ca6-303b-4b31-840f-05c3cc7970ab","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":138,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"011a1a37-6583-405c-ba27-3a4c8dd195b7","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"0409fcd1-7132-491a-ba8b-f354d9522830","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"7e4be4f4-081a-4062-ba29-6d2423dc0b88","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":138,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"9430a1ed-9bda-4aa3-b4e9-aaf0f0673750","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"68155b2f-56bb-4d83-98d0-991593c799b5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"5ff282e5-0639-4007-b1cc-d2e4f4629b7d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"b18c2862-85d0-40dd-b4c1-bfcd6bf77ca4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"6728a2d8-d1e7-49f5-a4c0-61df5574e834","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":138,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"df5fec37-e3da-4162-8640-430f3f6a6c8b","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"af120285-1119-4d89-9a47-b8ea5fb11e2c","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"123c0548-9345-4968-b8eb-709511c5a14b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"59c979de-98f0-4d53-9dd6-f626ca0efb83","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"44f322ce-6ac8-4b5b-845e-388a029aa8a7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"8ff14f3e-68c0-496a-9c98-b92152e9a7ea","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"63b7f820-1838-4593-bfd2-df7381398653","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":138,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"42913b49-9432-4e2a-b517-202f4cc264ba","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":138,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"0185f1a7-ae15-4df0-9863-e3ee32133fa1","block_type":"box","text":"may be up to the following amounts:","page_number":138,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"9415dca3-1f5f-4454-b82a-eec900b16c4e","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"35c08660-dbbf-49ec-85ef-1a60c831f57b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"6e8d409e-6d8a-48e8-9685-5b1a27d66fba","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"730f0d9e-0066-4923-96a5-c53c25d1e155","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"9a310d9d-c520-4f4f-bc69-b072a0a2003f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"020bfa50-e7ad-479c-ae39-ee75ea528b20","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":138,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"9368095e-ac1a-4ee4-b7e9-ddc221f98b75","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":138,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"b72f142c-786e-416e-bf19-9271970849e0","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"789f0d66-1216-4959-b5bb-197163b08230","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"e0d1ce27-1de4-402b-a18e-33880bb0583b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":138,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"5ef21713-9c19-4e19-bba0-75f4b24192bc","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"166a980d-502e-47c7-9b31-85962fa6d968","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":138,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"53e08642-7a32-4fdc-81cc-d037d7cadfa0","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"36cf15a5-ea8e-40f8-a07d-328cc1d693d2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":138,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"f71d9fbe-50ab-41ff-80fb-33bf94688856","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":138,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"414751dc-9b48-4f61-a115-b5a627a9868e","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":138,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"59391a31-b7d6-48d7-8b4f-87621333a60f","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"68dc11c9-a668-43fb-9ade-2ac8e0d8b9b8","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"17f010ab-4195-449f-a4a8-cc1794a9d52e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":138,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"f5a712fe-b93f-4680-abd0-7fbcff32f00b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"8a917fd7-f02f-45d6-8c49-aeff592e204d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"d0bcc16e-65fd-4213-a159-d954bddff81a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"b41f8ade-1867-44af-b8e6-34789f6c4f25","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"057c0781-feb4-4997-b0ae-880b4b046b06","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":138,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"cf561845-251a-48ce-89a8-427b39e2946d","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":138,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"646e5790-5a43-45ba-ba13-b5dab3d07a5e","block_type":"box","text":"$250,000 and above . . . .","page_number":138,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"c2a4576a-4b86-4318-b1a2-dad20b0e3a39","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"280681a5-e6fa-47b9-9a0c-d1f6497d694e","block_type":"box","text":"II-102","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6c41a7c2-54a2-4917-b819-bff5e6f5c923","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c564ba9-9aa5-4049-ac5f-03af268c2853","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"ba894204-56f8-48fb-b794-8aee3748e07f","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":139,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"39df082e-0c08-40b1-97fb-a2fdb15ab967","block_type":"box","text":"the following amounts:","page_number":139,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"8838826b-cbf7-45d1-b710-3ee79342bd47","block_type":"box","text":"$100,000 and above . . . .","page_number":139,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"eec8ea32-d3e6-4666-bcda-5a2ae048a453","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"7fd1b43e-4aa8-40d9-91a1-b6796450bc27","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"496b38b8-147c-41c2-847c-8112bcf4517f","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":139,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"187abbe4-a9d7-4535-91d2-e4551b03f2dd","block_type":"box","text":"$250,000 and above . . . .","page_number":139,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"b852297d-f51f-4846-8375-f2daf474ab5b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"80f12832-76d8-43dc-b00c-38350caa4a50","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":139,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"ab3567b6-2436-420d-8752-93115406d3c3","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":139,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"07b871d8-0249-4b59-babb-b2b8e5d396d1","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":139,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"0cafcaf1-bd86-4037-ad98-470bd8bd7bd7","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":139,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"39106b65-eb27-4dbf-87aa-926f5b41d254","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"10b9245e-acd1-4024-bbd4-575bfa640758","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"b2e197b1-d5d2-4aec-8c34-f7abf43ce018","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"25bab040-9916-41ed-a3b8-a902373be343","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"7ebb6d82-140d-49be-9c14-d9b7441df175","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"2678b1e1-6fcc-4f0e-96c6-168fa46d1deb","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"44391b26-32c9-421d-874c-b42ef236dc05","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"ec5ca5bb-3e23-4a3e-bb3b-8a6bc7a22bf9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":139,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"d251aef6-54b0-4747-8bbe-9d6eb371cc72","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":139,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"e88fc47a-f14e-4dc5-8f28-fd80b74f9208","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":139,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"219580cf-d2f9-44f5-9560-f087e8745af8","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":139,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"62d971e2-d5ff-4b71-9869-89a3117b611e","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"c0a4ba52-12ef-404f-90fc-f6141af1d3d3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"9081f414-363a-4456-81fa-b34f93e813e8","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"a1e52abd-c3d9-4dd4-a904-98c6acd7906c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"d8132b8a-b873-4ae0-9ad0-793729856006","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"8391626c-0301-46d4-b69f-c3a32acd8f04","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"0d517b0a-c88c-4b57-84b5-2be970b1e2e7","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":139,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"50d8ed57-9759-4794-9786-d9d1f4e42150","block_type":"box","text":"®","page_number":139,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"8a76d9cc-829d-430a-914f-5316753dab9f","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":139,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"f820cca5-d58a-4105-87d7-6c986c279e2e","block_type":"box","text":"®","page_number":139,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"95ebbc02-c670-4e28-bf1d-ff8415a3e083","block_type":"box","text":"Index 2035","page_number":139,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"51f351a2-be08-4a6c-be42-f1e4aec17b75","block_type":"box","text":"Fund, BlackRock LifePath","page_number":139,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"a67b01b3-b3c1-4e9e-b5c2-09fad450d4f3","block_type":"box","text":"®","page_number":139,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"6ae24f21-c42d-4da8-881e-f3c519c47725","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":139,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"7c482182-92ca-49c0-8fbc-654e776f0d5b","block_type":"box","text":"®","page_number":139,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"a3ceafbc-2ab3-40bd-a97d-eb33a39395d7","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":139,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"43431d3c-ed76-47f6-8a3a-8385e87125e9","block_type":"box","text":"®","page_number":139,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"242a31c8-7eb2-433c-97b4-88bde300b76c","block_type":"box","text":"Index 2050","page_number":139,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"e533b680-0ad3-4767-b9c3-dd67273a024b","block_type":"box","text":"Fund, BlackRock LifePath","page_number":139,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"717712a7-3c6f-4934-a64f-7b102a39146f","block_type":"box","text":"®","page_number":139,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"4f04fac1-d0f7-44be-9cdb-d40dbee20ef7","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":139,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"5419cbb1-5c9d-4cf2-9dd0-b414c4cf50d8","block_type":"box","text":"®","page_number":139,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"a4b0fef4-ed0d-43c8-a712-19eaf88e6a6e","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":139,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"379b3b39-f587-4bbb-a496-b6629a9e8f44","block_type":"box","text":"®","page_number":139,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"8fbcabe1-a26d-45a3-be25-d73564ee83ef","block_type":"box","text":"Index 2065","page_number":139,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"f9b8204e-022d-4ae5-b5b9-0ab2d3c50d12","block_type":"box","text":"Fund, BlackRock LifePath","page_number":139,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"aef8ead3-091d-4e18-96bf-546706fce1b9","block_type":"box","text":"®","page_number":139,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"bcdfd89b-afd7-4070-9825-80d5820fd8e1","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":139,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"111acf78-a990-4180-82e2-f0c7dcdfbff0","block_type":"box","text":"®","page_number":139,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"a7759da5-978e-4bbf-9114-b45785d0ea3c","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":139,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"b2234b43-3c52-42f6-a133-f8f246ab3964","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":139,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"f4342ff4-24d7-43ff-8dc0-4e2fa5931eaa","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":139,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"dffb568e-d63b-4866-93aa-9aaabf159576","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":139,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"0ddb2132-b291-45f5-9e1b-e383a4210c78","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":139,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"9b49d28f-6e9d-4ac4-89d5-23e08ee447c1","block_type":"box","text":"SM","page_number":139,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"28925a70-6c2c-4a65-a307-5f7019fca73a","block_type":"box","text":", the placement","page_number":139,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"d0010e48-ba8a-4907-852c-0006e431aa93","block_type":"box","text":"fees may be up to the following amounts:","page_number":139,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"d6cf3ce9-d304-43d4-8ab2-bfc970e47a73","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":139,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"25c431c2-09db-4a9b-ba6e-5d55a6aaa46a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"64fa4192-e5d6-411a-8300-4c549b453c85","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":139,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"74cd8207-e4fb-4c39-8cf9-9f42e094c0d0","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":139,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"dc2f2f51-f5bf-4281-a1eb-c99499d759bf","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":139,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"0559fe7d-4dd8-470d-b9d7-857df8bead0f","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":139,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"6c1cc59e-e09d-4ecc-9cb1-08af0543df75","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":139,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"59be1d93-de19-4ddd-8076-19a686104fdf","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":139,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"77b352a3-ceb1-4cdc-bcd1-3773044eea75","block_type":"box","text":"$1 million).","page_number":139,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"896ea1b2-ffbc-4794-ab51-8b75c56f86b9","block_type":"box","text":"Other.","page_number":139,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"a39357c3-494d-4de0-952c-3c4d22fa7f29","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":139,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"b0be758e-cd57-4efc-9c5f-97c679cf7078","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":139,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"bb98cce1-7938-4f21-bc48-121706be8d4a","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":139,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"5798a7b5-6f44-420b-98d5-5184410a9e00","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":139,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"28b55f65-26fe-4c99-a140-911a2439b9a0","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":139,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"885f2922-0959-43f4-a4ac-ff55359245f1","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":139,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"18c64cfc-8393-4849-9fca-684dffb36325","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":139,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"a31fa687-e07c-4990-a76c-7cd7f45dafdb","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":139,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"325aa141-5271-4193-af13-b0a99c28a941","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":139,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"5c407728-3a52-4638-b8b8-e6e894691f2f","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":139,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"e94b988d-e60c-4743-9f54-c700fc6a82d8","block_type":"box","text":"II-103","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a0a654b3-9100-43ea-aaa5-05fe41fb8e86","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b073c20e-c02c-4dc1-8d74-8767b377a985","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":140,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"b06ea3b4-d40f-485b-8079-48c62850350f","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":140,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"b4961c42-0ff5-43de-b42a-6c33501fcd9f","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":140,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"e0b73199-5645-4838-a2c6-add9559bbb0a","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":140,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"9759da0d-1359-4502-bb18-1fc9033581b8","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":140,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"290f8bb1-ea35-41b4-abbd-8002ed022f0f","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":140,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"08b283d9-5ed4-433b-a1ca-1140f9986db8","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":140,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"1a4b2232-86e3-4277-9848-931a6a489d0d","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":140,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"3cd45471-2a51-4d97-81e5-fd9f8d977938","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":140,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"eb33f2d0-c41b-4335-b86f-60ec440db042","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":140,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"759bd1e3-c4bc-43b8-9b08-2f0ccb208cfd","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":140,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"7824bfc2-946f-426e-804e-50e701484f48","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":140,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"edf38bb4-c251-4ad4-902d-13d45ddf4569","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":140,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"9bfe15e4-b6a5-4dd8-8399-3e63fc686ef2","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":140,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"feea3f04-770b-48e5-b800-306d651c00eb","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":140,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"16105c8b-4a21-44ca-a887-0dbde81ca765","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":140,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"59edb0b4-58bf-40b9-82b3-62e81a2bbfe4","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":140,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"0958fb01-ba7b-42cd-83ec-82b3c93d9a09","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":140,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"8f952ae8-b71d-4b62-93e2-35d6d9f4008b","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":140,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"68533791-1436-436c-903f-0469a620c7cb","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":140,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"ade26b9d-3542-4e58-8b91-b641fee33f6d","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":140,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"d4c70d65-c3f2-49f0-8d80-6394590151ee","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":140,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"cf8846f0-b868-4130-80dd-0f81a13a9485","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":140,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"d83fa397-c10e-4171-b94f-a6bbe18ff167","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":140,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"3414b360-5392-4e17-8db3-e5c734b47352","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":140,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"8fed5b37-98ef-487f-8eb9-ac5eb28d5aa4","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":140,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"8061bb2e-f6c8-4d35-8892-435662e35154","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":140,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"5e05eb8c-fbb4-49cf-980d-3e19c175145a","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":140,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"ab6fd7bf-8fd4-468e-894c-10c25f4d25ee","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":140,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"7ba97040-c784-4fc3-b5d9-d53ce6d531a7","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":140,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"fef3622c-c6be-400f-8a65-d6558e4f79d1","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":140,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"c55f0e77-c2cc-4fb3-979d-1577c8ba00f4","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":140,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"5d7cd50f-b3d0-4cbe-9adb-4fb0bf24697e","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":140,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"ecc65fca-d7b7-4bbc-b37a-a3fb99c305c2","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":140,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"b7c19b45-388c-4c03-8035-80f9fd740ee5","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":140,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"daeb4860-d3ba-43cc-982d-f32fc3547ca5","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":140,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"6161038c-8c5a-4dbd-9baa-78eb4f0d8205","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":140,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"6ea6b049-7f8d-468a-9930-9cc9e6daaad7","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":140,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"29746ee4-abc6-4ce4-afc8-3096929936aa","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":140,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"455d0a12-eabd-47e1-b0f1-ad92ff33c03d","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":140,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"5a0f0ff7-5e9e-4288-96a6-e27e9bf18fe0","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":140,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"eb111e66-4e20-4217-80a5-5f30f360562c","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":140,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"10b3f191-5525-4070-ba07-d0c86a52f890","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":140,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"becba38f-f350-4a55-8280-c7f3fe36db64","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":140,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"26d8eb42-4ebc-495b-83fd-147b6f2513b7","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":140,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"75cdf588-799c-48e6-b059-93f994f46319","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":140,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"7070dd3b-098a-4909-922d-801b92300dba","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":140,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"a848a0e4-fc6e-47c1-b8c0-1657646361a2","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":140,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"98200b2d-59d3-4bc0-80a1-e1ad60b50d0c","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":140,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"bf5917a4-93db-473f-b4df-1179ad7297ed","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":140,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"28eac03f-e99a-4035-9054-1f0e0062a15c","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":140,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"974e60af-17ec-4cb1-9804-5121161c106f","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":140,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"05af4404-8721-485b-ae7b-f1bc2c584483","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":140,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"6a657114-9f99-4440-be28-010bf2c7428d","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":140,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"f8a8f81f-8d6e-4afb-be89-eec4b2000c68","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":140,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"9131574b-bc58-4d25-a189-79933c723baa","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":140,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"2bb38257-1153-472c-a0f6-3f8d78531e87","block_type":"box","text":"II-104","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6c57b634-5b77-45bd-a6ae-8395ad8531a8","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5a85b3e-a965-4359-9d65-da66691e4035","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":141,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"e9c95d1a-648e-49a4-b1bb-d757eaeb71ee","block_type":"box","text":"the absolute discretion of a Fund.","page_number":141,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"a7975c45-e9af-459d-9b32-e795e36fd9b0","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":141,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"65f48ca7-cd7b-4edb-a13d-211bd7b5fca8","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":141,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"dc3bdd95-bc7b-4172-a476-a03dd497fb8f","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":141,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"6118c144-29c5-48c8-adfe-414819201bc0","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":141,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"a235bc27-848b-4dcd-8e73-2a2083c6ddb9","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":141,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"b0e67537-c96c-4b8e-966f-d40fe14c38d8","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":141,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"028d86fa-015e-4cf1-a508-0010ea0641fd","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":141,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"e1e9dfba-78c7-4341-88b5-9e155bc86977","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":141,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"beb58e06-b6ce-4f3d-8bd7-98f31211c2f5","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":141,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"dbba2d68-6cf2-49e2-b959-f1529e61c856","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":141,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"cd9579df-d33f-43da-b41c-b76ab662d2d4","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":141,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"69665320-37d5-4697-9fd3-313634c33360","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":141,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"1b12657c-43be-4826-b4e9-404e2cc81f1e","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":141,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"81335caf-f085-4845-861a-5bfea2589091","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":141,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"569f08b1-77b9-4a03-8d6d-475105f29536","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":141,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"79d54ac6-fff4-4992-a7e3-d7b48c5d08ec","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":141,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"4184e797-7371-4336-b99a-c25752ad862d","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":141,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"7e637bd6-d851-444e-a015-38645a7fec2e","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":141,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"4ee2999b-2467-4250-adce-c87c16e05cb2","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":141,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"756237ad-bac0-4f9d-8dab-80783270b16d","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":141,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"8c0dc709-58c3-4cc0-9d5c-7a180784f7b4","block_type":"box","text":"public or private investment company.","page_number":141,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"ea933408-6a89-4709-b983-0c1c41de7873","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":141,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"cf32dc66-5031-4eab-8e3f-3ece52842381","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":141,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"a6dd8635-12e9-40a7-b62a-a23cb2cfa4e5","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":141,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"916441c4-ee17-4a72-88aa-76df9bcdf8cf","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":141,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"ea9845b9-fa2a-4569-9375-6709758a1555","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":141,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"78bb6d4f-322e-4ea8-8f86-6526438f422b","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":141,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"316e0d78-7c1c-43d9-9a95-9472c67d383e","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":141,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"37e0954b-623a-416f-9758-9048e08e0b2f","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":141,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"d18f64b8-318f-4b06-be8d-7cf8a9382b53","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":141,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"ec0d9088-ccbc-4484-ac19-04cb00b1d96a","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":141,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"f1c978c4-c103-490f-a81e-ec2a5e85b007","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":141,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"04ab24bf-5093-467b-878c-04cff2619853","block_type":"box","text":"intermediary associated with the account.","page_number":141,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"b2057067-9282-4df4-bfc9-7be1fee106e7","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":141,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"8372e9f0-2fe9-4a33-a56b-578e2915baea","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":141,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"fb448a22-7cf7-4ad1-8d40-731f05f13bd0","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":141,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"01258260-2d67-462b-ab23-b84f3dcbd776","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":141,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"4537b41d-1c0f-47de-81d2-c8b3e24be559","block_type":"box","text":"CDSC shares.","page_number":141,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"05f22d57-7683-46bc-bc03-c3130ecc4e7e","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":141,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"e65fc356-420d-4ec1-a351-8c70220d294c","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":141,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"456967e9-51f2-488f-a2f1-e002c048387c","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":141,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"eaeb6b4a-b64f-477b-80f5-ca182e3559d4","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":141,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"2ef811d1-0226-441f-b633-4a7f96c2d1c9","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":141,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"517933ba-49a9-4cc0-a3f7-c55881b4f9cb","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":141,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"0761cb0b-5831-496f-a045-fc707561af3a","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":141,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"50562a8e-10c2-42e7-a60a-2370df499ea8","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":141,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"8e7adf60-79ec-4862-b36a-53fe4c4a59cb","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":141,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"da8648f6-1d09-42d6-9ad5-13bcfeee3ee5","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":141,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"ac442778-c00f-42f3-9808-7851da3f0f92","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":141,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"24b99e0c-c52b-4b63-af2d-78df4596254c","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":141,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"90a6e7a4-d26e-494a-ba5e-a972cc6e85f7","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":141,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"afc91a24-075a-4295-86bc-6c614c7a4309","block_type":"box","text":"II-105","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fcedbddf-83ed-43ca-849b-8d10e2cd09e0","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4757062-0d1d-4eb2-a54a-370d2120c563","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":142,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"80845d86-cce1-41ff-9940-667e533d9a82","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":142,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"4525351e-7c28-4e79-a542-eef46ca223a1","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":142,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"a79d635a-2926-42a4-a2f8-218d6d764a49","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":142,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"e9b89fff-90aa-4f6a-8399-10776064c8ba","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":142,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"76445ce7-412d-42b8-b546-263fd7cd591d","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":142,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"f9f0aaf5-915d-405d-9d04-7012d5634483","block_type":"box","text":"Investor A Shares.","page_number":142,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"e74c032e-1ced-484b-95ab-436335f1a6ef","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":142,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"7a7c1709-f4b5-4e53-8d1b-a9c1d81ab969","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":142,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"4ac6a148-0cdf-492c-9c0d-7405db52dd00","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":142,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"0fc9a2ba-5916-4e56-9f9f-b002208c5145","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":142,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"2035ea82-332f-4333-b80c-96e547391924","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":142,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"217cf018-e938-4a06-93e6-a620bac03a9a","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":142,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"4915f3ed-dc4f-4ef9-bd79-b310ac0d42a5","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":142,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"cb6b6123-e0aa-4ffa-9d08-9ce80e3c6b10","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":142,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"6bcab047-7a64-45e3-8942-81ade0ca295f","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":142,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"76f00728-fabc-4971-9383-c76be67468ff","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":142,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"79bf63a5-86c5-4327-908b-e0a5ae7f632e","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":142,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"3d1a1a77-3cc0-4585-b7cd-c7c1347e0c27","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":142,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"8d09b671-933d-4415-b815-19a1749a675e","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":142,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"dee478ee-0f28-4557-8fcd-364385927682","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":142,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"c354aad0-c054-4c29-802f-2c5b37bbca49","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":142,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"30da7eb3-07f7-4a37-abb8-30d629a7bbc2","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":142,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"56ec0b8d-cd61-4d05-8afa-2bd7049b9c35","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":142,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"8ae36125-05cf-487d-8f7c-2fd0330906e6","block_type":"box","text":"“Investor C Conversions”).","page_number":142,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"fa6540b3-a808-4ba6-b1c4-3726dabbeb49","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":142,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"70521fef-95ff-4dbd-93ca-631dba3fbe5e","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":142,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"d2d81453-c664-4c2f-9de0-bf64b6578446","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":142,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"1407a9ad-cf96-4432-b91b-55d22b0ee2e0","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":142,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"0504d932-e235-47bb-839f-9fcc13794aac","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":142,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"4a4c86fa-6515-4574-91d6-7d85d751e51e","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":142,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"c93f3cbc-e6ae-42b0-82f3-d21a7bc3726a","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":142,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"b6ab0727-1fca-4367-a5b2-bb13843411ce","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":142,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"32ad1316-8c25-47c6-819b-ea8c67c8e34c","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":142,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"95caa667-aba6-4049-8ec8-6330d1d2ea0f","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":142,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"d6493c46-7949-4ed5-8fd6-8c99fc8743b0","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":142,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"3a995c9c-6286-4171-8e0a-f9837302bdda","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":142,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"63c6fc54-c480-4002-8b3e-15e4fe0a0075","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":142,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"f9103db6-b409-47ef-a26e-986f3db7cf52","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":142,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"8ed6f07f-c654-4f23-baa8-8623d69a42e8","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":142,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"a0942dcb-43dd-413d-9950-5cab5b3e97f9","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":142,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"afd0c8e4-c73c-48b9-afb4-a07f2b769f26","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":142,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"440a07b3-14d4-49dc-b878-774e7f8e8ebe","block_type":"box","text":"redemption.","page_number":142,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"3ad6269b-8a57-4ca7-812a-75d00c7876c9","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":142,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"c2c308e8-b6a6-46c4-9269-53a033423b6e","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":142,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"a94694c4-c1da-4e92-a5ba-f5ea763acb4d","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":142,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"d7289aec-e85c-40bd-936d-71a3e9fae3f3","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":142,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"d8a2322c-a3c2-429b-81a5-acfb341cd1ea","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":142,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"b55b34d6-9bf2-4b74-ab67-7ccfd35c6aae","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":142,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"e4903ca6-89af-4bdf-a8b4-30fb67f5430a","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":142,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"ba033e44-9bdd-4ac0-83ad-76f70f94197f","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":142,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"35d057fc-2e82-4818-bbab-08977c39abde","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":142,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"058833de-bca4-4b50-a791-b114bb685db6","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":142,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"68b61da8-daf5-4ba4-828f-ed929ed214c7","block_type":"box","text":"II-106","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d8ffa59a-ab34-48fb-b07b-2827de32cc5e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28bc42de-35c1-484f-9148-b10bec20eda2","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":143,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"9b7ad66f-b3c8-45f8-8d28-63f914099920","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":143,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"e452b1fc-ab73-4287-8b0a-e9a77c465c85","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":143,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"2b25f329-5d9d-445c-825e-c2addb0a6c80","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":143,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"8218b97e-a9c5-495f-b34a-6fac83613124","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":143,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"99adf5c7-f6e3-482d-8606-adaa05e7fb8b","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":143,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"0acadafd-3885-46b4-bdbe-d3851fe53442","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":143,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"d7337aae-94dd-481f-8396-759b2db71cd6","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":143,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"21545fbe-232f-42c7-b5ea-f531dc08900b","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":143,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"dfe6ea6b-1a56-41f1-814c-d02ef162fab9","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":143,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"4e3f3c7c-8acd-4c1b-80b7-54d4a69fb666","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":143,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"81dd9328-5d5e-44fa-86f5-44ab5b70c5a6","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":143,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"b35a4796-5c95-40d7-99ec-3223de090b96","block_type":"box","text":"Class R Shares","page_number":143,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"2b832e31-6384-41e4-b8dc-afce14027b62","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":143,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"735c0e03-1561-4f26-98fc-0d4aff42f13c","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":143,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"e253d6d1-033f-440a-a884-f9947519e22a","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":143,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"0b0e8097-aa74-4bdc-a77f-1a2623f4f294","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":143,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"fa0d0b06-aa40-40e8-b226-b16176528298","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":143,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"cc4f31dd-37c4-4b86-a4f2-3fd3bf93bb05","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":143,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"57c5942e-8c5b-47ac-b838-c6e404b3ece4","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":143,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"643560b0-b1ab-43a0-8632-af395dd827a3","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":143,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"c6814913-eb7d-4258-96a1-190ac180e60e","block_type":"box","text":"Class K Shares","page_number":143,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"5c359832-d3ab-4136-bcb7-0b0e28d34dc0","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":143,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"5d6747f1-4596-411b-884d-f9e69feb1c35","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":143,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"ef9e6ef2-1711-4c3d-a2ce-ac649a16eaee","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":143,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"07ed968f-d102-466b-aab8-bf53024f4aa8","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":143,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"80404eef-ea33-4255-898d-808009653848","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":143,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"dc1de317-b128-4631-b089-26b942a31ece","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":143,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"1455561b-fa16-4b21-afc2-fbcea65e61e5","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":143,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"9d2fdfa1-5068-4298-a0f7-9b3439d56680","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":143,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"e36243c9-3136-4c51-a176-762750c2f839","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":143,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"8d131d12-5f67-4e4e-84e0-f3bcfc119af5","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":143,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"81540c6a-be63-4aa7-8dcb-2ac2e87e134c","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":143,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"899249d5-1432-4408-83af-ae68326f35b4","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":143,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"89cfe6e3-795a-4434-be15-a8afc3184e14","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":143,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"96e6840f-0e0b-4ece-9d5e-2c983d3ad052","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":143,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"aa0846ce-0ec3-4c05-8cdb-c6a1a96d79c2","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":143,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"38565ee0-ef75-43d2-8e9c-78894efeef46","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":143,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"c4e62254-eafa-4bb0-a344-e94fe6e38956","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":143,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"f1bcda35-1ad8-4ca6-a8d3-52b6c086c53b","block_type":"box","text":"distribution and marketing agreement.","page_number":143,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"caaa1ec3-b427-4133-99e2-b57bba49f4c4","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":143,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"087e224b-a53a-4024-89eb-8aa4ad395b76","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":143,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"a49e1c09-7b73-419f-982f-fe5bc9e3d004","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":143,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"a99f1843-2116-41b4-8a28-46bf54033c4c","block_type":"box","text":"Class G Shares","page_number":143,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"175c45d0-76ba-4871-b982-a7b1ddd2f79c","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":143,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"04930db2-5e65-4cab-9e36-08406a6a67ae","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":143,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"b1a927d7-4758-4bd7-8edc-48ed4903c8ef","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":143,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"81d6d94b-8a0c-42da-940f-e790ed8eb395","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":143,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"c033f9d7-f8bc-4e58-9e99-4be6a8f9d0e6","block_type":"box","text":"eligibility requirements.","page_number":143,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"84091c49-2ea7-458c-9ac6-6f32f121d013","block_type":"box","text":"II-107","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5b5a7481-18bd-4710-a782-213d7a58d03c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b207e1cd-55e6-420a-89d7-786b7c4cb852","block_type":"box","text":"Service Shares","page_number":144,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"6ee61a49-211c-4a9b-9402-53148e43102e","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":144,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"55da09ee-4935-41a6-ac89-9a784e723b30","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":144,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"4218aff5-5473-4bbd-a6e2-2cc173492e0c","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":144,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"e22c2889-f6aa-401c-9d00-663f32690571","block_type":"box","text":"®","page_number":144,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"2c85fe2d-c31c-48f5-9455-c3eca3b9764b","block_type":"box","text":"Fund in 1996; and","page_number":144,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"38635c73-3d0d-4941-93c7-2c19b491b1fe","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":144,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"8363b6f9-7ed2-42dd-a938-61f347d59071","block_type":"box","text":"SM","page_number":144,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"5041691b-01f1-4969-a7f7-56100708bab7","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":144,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"82fe526b-f69f-4495-9ce7-276f8d1a3d21","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":144,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"508f1f61-a429-448c-9ebf-a5053c5f708b","block_type":"box","text":"BlackRock Shares","page_number":144,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"78a6e6a0-7d40-423b-b443-476836ec2a5e","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":144,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"90b11985-cc78-471d-8f58-3d484fd47f71","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":144,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"72fbaee2-a58e-4eb9-9676-2bf029c200fc","block_type":"box","text":"fee-based programs.","page_number":144,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"a6d12fa6-b789-4f18-a97d-a937864936f8","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":144,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"c9823b5a-08d1-45e1-bf3b-0f20861fe445","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":144,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"c64f15c5-f015-4d0d-a9e1-af26c445c501","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":144,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"ac3a3113-a4b8-42e2-aa4c-63a467d3f72f","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":144,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"95b88947-f226-43ef-bec1-d35701591b4d","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":144,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"e98529c1-46d4-41bc-a7cb-86bdbc87aa34","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":144,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"634631d7-845f-4e2b-b2dc-7e4a43d74351","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":144,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"c1fe162b-de6e-417c-a5f8-03604b9dcaf5","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":144,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"65fa0d0a-d62e-4ace-a6bb-31d506ffe6b8","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":144,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"2fd542d8-899b-4082-bad5-a1f8571ccc72","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":144,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"97715aa6-62f3-45ad-80cc-a5149419b53c","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":144,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"17e93600-8ffe-4db4-a61d-abab7ff2b38e","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":144,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"0a0a4224-9da8-4d56-b441-051bda386168","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":144,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"76dcaeae-7298-4e77-99fe-d99846651c46","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":144,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"079aeaba-4b86-48cd-a278-25e2883aaeac","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":144,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"fdb9b87f-cc73-47b9-a840-87014df3c0fc","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":144,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"489fc6ac-3403-4d0a-a8fd-eb5f81652dc4","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":144,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"fa65241e-5397-4ec8-b3d1-6a7612f661da","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":144,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"9d81ae43-2534-4091-84a3-c88c77f38f03","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":144,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"3b682848-a943-42da-8e2b-0e9ae72774bf","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":144,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"029c0fda-8c07-4a65-9ac3-333532a1e3bf","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":144,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"227210f1-45c9-46f5-9fd2-b4e77ae458c7","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":144,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"36dacf8f-a82b-4cdc-998c-5e8e3ac6c63a","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":144,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"074745eb-c046-4f52-846e-3895a78e35ad","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":144,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"2143b72d-106a-476b-a13f-1a559c191100","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":144,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"4de8d041-733b-4765-99d1-a1d856cdbf6e","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":144,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"7c22ca3b-4c4b-481c-929a-edcc6caea4ec","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":144,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"8fdce0a0-86eb-44a4-8ec4-c429fd1738d5","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":144,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"985e7ccd-b7cb-43bd-87de-e0deec0ee2d6","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":144,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"6a4d3f36-1397-4566-b929-55a44bacfc7d","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":144,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"102cf736-6eba-4716-9f2c-6c82bd8af372","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":144,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"dddaf1fa-740c-4e3e-bacd-141cf2621a00","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":144,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"92c042b2-4cd3-4a70-a023-a1e1006ac78c","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":144,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"01a80396-e82e-4d90-bc57-732328274757","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":144,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"b9c2386d-dba9-4a9e-a4f9-54e5046c9c77","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":144,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"ee256933-c8c7-4eb8-9113-1d0150e6406c","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":144,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"f662397a-222a-47d1-b380-a4aa2850e399","block_type":"box","text":"compensation for selling different classes of shares.","page_number":144,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"209d2fe3-9a9f-41ae-92ad-90582a3267a4","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":144,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"32cb7135-45cd-46f0-aee0-0ded6b52c686","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":144,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"4ece2d38-b099-4d05-98ca-4c801786dce7","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":144,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"60ffd665-b952-4b6f-b902-df063020cc5b","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":144,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"b0bb2382-396b-429e-924b-e56fba9a53ba","block_type":"box","text":"II-108","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e7fd55f5-2aac-49a9-894a-ebc7699f3dde","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39a82a67-049b-4b68-b8b7-23852fe884d6","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":145,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"0f762710-b5f1-4ea0-b02d-ff7edb38b0ab","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":145,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"fc59ae52-064b-4e7f-86f6-b8283f64bcd6","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":145,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"5244bfc8-b39e-4bae-963b-2ad00b0d8aaf","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":145,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"d75a6ac1-7b09-40db-b959-ac77fc85af10","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":145,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"c2df3963-9a0b-481d-8d5e-58c4f42cb8a4","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":145,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"5ef73f58-9a7a-424a-8280-3e50f6607e4a","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":145,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"41621368-92e8-474e-88b9-0c8e6931b2fa","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":145,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"cb1c1335-004c-46d4-9dcc-e65a03ce79ad","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":145,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"d6e6db5f-4e1c-45fa-80e3-5cc94f98f044","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":145,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"0ffde590-730f-43f6-8ef9-7c91125ab771","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":145,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"74cde8b7-58b1-480c-855f-a2aa4c059848","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":145,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"4209f7a3-6d32-4b25-80b7-c5e68924abe4","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":145,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"766a2013-4c81-4acc-ab87-1ce7d49f6f6a","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":145,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"ef6e06e1-883a-4a71-bd24-3a2ee5f0ac13","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":145,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"68d911e0-9080-46c8-aaed-6f2b29a6ebfc","block_type":"box","text":"easily accessible place.","page_number":145,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"e770c36d-7ccb-4179-a54a-db320769f26e","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":145,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"c8b58901-8414-44c1-acdd-2630b0494c93","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":145,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"6fe00ce3-e09b-4c5f-9838-9aa5634bf43f","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":145,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"89dd4fe6-2d55-42e0-969e-e41bf85074ac","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":145,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"8d6b441c-b5f2-4330-9a48-f321705a03b0","block_type":"box","text":"fiscal year.","page_number":145,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"0e57cfa6-1fb5-44ce-b155-4ce325b34f77","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":145,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"fe7c6c6a-27a9-4b66-870c-c50397365fec","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":145,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"0e7784db-5f24-44f4-a0d5-ff50e70a5b89","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":145,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"45857345-c867-471f-81fb-5b8f1325d896","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":145,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"66c31fc8-4fee-4b0b-a4b6-3c7ce44f0a7e","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":145,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"d19614be-9123-45e5-ad29-5d5bd623f98f","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":145,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"fdd0d87e-6259-406c-8811-2b350605664c","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":145,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"a37ba720-a1f9-4a03-8c4d-976c8dec78bd","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":145,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"790bf79f-7f77-46d3-a084-127cf6fce7ed","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":145,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"79c25a5d-5b1f-4fb7-95f1-b4f366286aed","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":145,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"3981cabe-1832-4f2f-ba5b-39b951402562","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":145,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"436691bd-fcef-4fbb-8791-a2f2419730ab","block_type":"box","text":"and Class R Shares of your Fund.","page_number":145,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"48fd9ed6-6e3b-4ba8-a761-d3f0b729ef01","block_type":"box","text":"Other Payments by the Fund","page_number":145,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"e29b51c3-8a8d-462c-adc6-95d5678ae152","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":145,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"a609a762-2959-4107-825a-b1a89982fe32","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":145,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"ddc6b62d-30db-44ec-a071-f85ca3cbab11","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":145,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"190b09e2-f090-4ca4-a7ea-874456664298","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":145,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"5570a102-3cdb-4323-a0fb-5613778f714e","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":145,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"ec5912fc-0111-4a23-8ae0-a0569b71ce34","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":145,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"3737d3c5-bb3a-4a45-a672-0e02d3e1b67d","block_type":"box","text":"of these payments may be substantial.","page_number":145,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"8e2dfe01-c963-403c-b7d7-04a51dc03311","block_type":"box","text":"Additional Payments by BlackRock","page_number":145,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"0a4c97e5-4d09-42ce-9146-97457cd3659a","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":145,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"937c19b3-990e-4fff-abf7-d39533707fa8","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":145,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"b6197600-b18c-40c5-a816-99a13cf94bbe","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":145,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"0f9ab60d-808a-4bf1-a890-1e9177d60882","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":145,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"2bb5b40a-137e-44d5-996e-435bb1637013","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":145,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"0c8a0ea0-838f-4290-a23d-4f2da45b0f3f","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":145,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"10568066-5bd5-4e49-b611-09f2d6c7b84a","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":145,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"2bb09fab-182a-47c9-a5ff-0d6af1690037","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":145,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"acc7c101-1870-4e63-b3fd-23907a497fdd","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":145,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"6e1190fb-3f7a-49dd-993d-6a53ff1237c2","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":145,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"797f0b4b-4adc-4121-ab4f-68dc4013d3a4","block_type":"box","text":"II-109","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d11b7b95-ebed-44e8-bfff-6c3ac6400807","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c3e14388-7e57-4eb8-9e5e-f09a74498ee4","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":146,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"70583c46-b36c-49bd-8c52-6adcbb7a708b","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":146,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"48a4af33-3c47-4d84-a500-50a7ef1ee407","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":146,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"9deabf31-673a-4231-b12c-5f5bd1c39119","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":146,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"80045ef1-e2d5-45ce-8e85-54350519aa07","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":146,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"a4d78a80-27c9-441e-a650-ccd209af0671","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":146,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"c21fc30d-29da-4a34-bd2b-6e162f62543e","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":146,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"ed56efdd-b0c9-488b-8e61-8cdfc01466e2","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":146,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"95dbe247-8877-4c17-a0bf-3d8415aba40c","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":146,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"f39c8149-c6f4-4745-9b80-76f15b451ba9","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":146,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"3b298517-5af4-4542-9f01-530daa1fb172","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":146,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"112b9b18-ee2c-4b4d-8864-1519b980bd72","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":146,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"ef49daaa-dc8c-4be0-94eb-4ce117503303","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":146,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"20b5929a-04ce-4410-8476-1f945a46b328","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":146,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"4b23c1ec-5b8c-4a6b-b5a8-e5fa52c8a1a2","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":146,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"061c898a-f799-42c7-ab55-2c7775957852","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":146,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"db2f386c-4d12-40ce-b98a-46d6c8e13bcb","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":146,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"be4770d3-bada-4351-a64c-1e7bda2ce25a","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":146,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"24a8387f-2a19-4ad6-afa0-d0a9a3cc10a3","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":146,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"b7efd40d-ca63-480c-868a-783d3292f145","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":146,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"fabf907c-aebf-4b0d-ae8f-39f8d4c45ed6","block_type":"box","text":"Funds.","page_number":146,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"4821208e-52a7-472f-9334-7be8c98a8b7f","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":146,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"dabf767b-7049-44e1-9520-0539a00c4671","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":146,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"a8bc0e10-03c1-47f0-9222-8fa57e0730e2","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":146,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"892cde20-b4ff-4904-989b-c3e82af00324","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":146,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"38816103-b11d-47ee-9ef8-6f67235acc33","block_type":"box","text":"B. Shareholder Services","page_number":146,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"bb6f9bc2-c78c-46a0-bcc3-0f1aee6a8537","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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Service Organizations Receiving Additional Payments","page_number":146,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"26c6cc58-a42a-49f9-a410-89fcdef40210","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":146,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"e761faa1-68fb-4c41-83da-7d97b9648805","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":146,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"f51c2e9c-045f-42ef-96a0-9daff80dce2e","block_type":"box","text":"II-110","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7aa63d0f-2e64-4fb5-9531-6665ae1c11f8","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4527054-e744-45d6-bbea-1b8f4e0146ce","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":147,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"e79fd4e8-3a58-421e-a70b-7fb9723fd897","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":147,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"3a116868-008e-49fc-b272-6b1cec843149","block_type":"box","text":"payments 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BlackRock","page_number":150,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"e76f68c7-73d4-4776-8fa5-c8cb512d17e2","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":150,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"fc757a3c-a83b-489b-aea7-df96786ccc23","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":150,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"af9b083d-b8a5-48e0-811a-839640eb7a59","block_type":"box","text":"traded products.","page_number":150,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"71266e33-f902-42af-a075-8d645e7b9dc1","block_type":"box","text":"F. Conflicts","page_number":150,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"a7912db6-a9ad-4b49-8e9c-90bff027a8f8","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":150,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"175db9c5-e4f1-488c-b50b-1196e35d61e5","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":150,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"a437f760-79d8-4ba4-8d27-10c9ebe0c81d","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":150,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"f3ef405a-7a56-4f77-bf25-b5489798adf6","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":150,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"18c421ef-c1a6-4ccc-88d8-c9681d6ca6bd","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":150,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"c0ee0575-a153-4a01-8687-4cad6e07e2dc","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":150,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"8e9801ff-7d16-4d84-9c47-b1cc8b2d5f48","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":150,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"05bb6f78-b07a-47f6-87dd-e6ebb35a721c","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":150,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"a951a170-e7cf-4230-bab4-dfd733e14d9c","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":150,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"7ab5f8dd-7739-4a69-ba95-c6982535c291","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":150,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"51afbd0d-5ab0-48d0-a998-237589628628","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":150,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"29fb0d06-e34a-4d53-b94c-a07ec19e8dc1","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":150,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"9b74ce6f-b7e7-43c2-b2e6-fca410858409","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":150,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"ad3a6e99-dc76-47f7-bda8-b34aa6ad7d7c","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":150,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"f6ab87bd-93b0-471f-90bd-44ce115bb0c7","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":150,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"64445581-f452-45fc-96bb-c62eaee44b55","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":150,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"4e7c3db8-7598-49aa-93fa-d819d9571e67","block_type":"box","text":"appropriate.","page_number":150,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"27fcb4b6-b6e7-4d31-b7e9-58ddddc9543c","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":150,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"f2b91203-38f8-4aa8-aeb5-6f36db3c33a4","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":150,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"892b64d5-3199-4a7b-8c66-9cce38e5c1ec","block_type":"box","text":"described above.","page_number":150,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"3986f1e6-3052-49cf-b45f-b4dffc5d8261","block_type":"box","text":"REDEMPTION OF SHARES","page_number":150,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"caeedfa3-b02d-4540-a858-52b145a5c057","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":150,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"7afdd8dc-2cfc-48c3-a9c0-aa14aab732c0","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":150,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"f0c210c2-fd38-4370-a390-5e85c456d439","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":150,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"b38cead7-a72b-486e-afc5-879d80383454","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":150,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"22334d3d-8013-4d2f-bef1-6fce3d557dbe","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":150,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"1671ddfb-4dba-4fb7-8a9e-98709de3b136","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":150,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"70f63912-54d7-41ad-ba60-64df6736e3c1","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":150,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"ce1d2fa0-cfd3-4882-a85b-443a38f4886f","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":150,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"c9fa6d83-2ed6-473a-9d91-42eeb0a713ff","block_type":"box","text":"II-114","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"96758018-4dac-4f37-8abc-de78a848590e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0399f814-a82a-4029-96f9-137448744c3b","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":151,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"8de0b345-97ce-47a6-b6d5-9e63897aa7cb","block_type":"box","text":"for any shareholder of the Fund.","page_number":151,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"edc62b2d-980f-44b2-a3c2-c093422b09fe","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":151,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"54ece931-5b54-4844-b79c-fb29b14a6569","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":151,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"815b74cb-6b93-4ad4-bec8-cf17f7717fc6","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":151,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"0c4942e4-690d-4f93-b6fe-1c3d0a45c454","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":151,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"18efb294-02e4-4b39-8f67-77f2a9a1079e","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":151,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"9f37e6f4-d9af-42c9-8a61-2f08e712f150","block_type":"box","text":"redemption.","page_number":151,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"6eb9d406-4f51-4c51-b602-ead5235123ef","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":151,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"1618e86e-fa5a-40ac-96e0-c63a56f2f16f","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":151,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"0566cfc5-2f27-4730-bb33-211bce1f02e3","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":151,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"cca0ba8c-36ac-49ae-8879-cd29d394eaf8","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":151,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"6d0758fb-d377-4755-a082-c82b4e836ddc","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":151,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"a6b84efc-82e0-4ea1-94c2-08ff7058d589","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":151,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"a37e389f-4099-49b1-8540-dd3c473f7d9d","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":151,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"41e4e5b9-d9d6-458b-9bf3-ed2447fab6a4","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":151,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"4f2c4756-2697-4e78-ac22-407355d4ebcb","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":151,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"3e97c57d-3ea2-4dd5-9c25-6c262dfac117","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":151,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"92b34bf9-9250-4574-a5cf-21ba4d39a432","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":151,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"66e0db47-cd2c-49a1-a856-665b9ae560cd","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":151,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"2ae19147-5183-4b09-afae-aa0cf6a69f26","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":151,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"8ad77ca2-a7d3-4d75-bc13-50fcc5887e46","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":151,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"68dcf6ec-f451-463a-937b-8093a1896be9","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":151,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"979ad9b7-052e-48a5-8fe0-178e29a2cb95","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":151,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"485913c1-22df-4512-a7e2-6c2d6b1bba0a","block_type":"box","text":"Redemption","page_number":151,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"135e9cd4-75df-4296-a163-45820f639742","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":151,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"d6837d3f-0f7b-48d8-91a1-6d9f40ce82e0","block_type":"box","text":"Redeem by Telephone:","page_number":151,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"de499f57-6680-45bf-ab65-7f6fb6fdcfdc","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":151,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"f8387aed-fbba-4d8d-8ea6-71e1200c3864","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":151,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"6faaa648-6777-439e-a3b0-2b7616365ad7","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":151,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"42877560-91b8-44fd-8335-71212c3546ac","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":151,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"2793cb7d-596d-4d05-94bd-cca1498e1b6e","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":151,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"5f60bf39-9ac2-437a-b275-0331236b4ed2","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":151,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"5824ab8f-3cc3-4650-97c2-0bfaefd3062f","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":151,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"4b12f307-0d8e-42bc-93cc-779d029da887","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":151,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"3648abcf-52dd-4597-a3b3-983e1c8bd926","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":151,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"bf678c24-9760-4f9e-bb60-57567a53264e","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":151,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"a6243942-0c86-4d9f-b19c-80d857739298","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":151,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"c86e0b9a-15b4-4e5f-91ce-9a34c18bfa9c","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":151,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"6479ce89-76b6-4048-9380-e083ec3de1fa","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":151,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"4a76b2ad-0c0a-4b6c-989e-1bbdae1d5d61","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":151,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"1300908f-770f-4c74-97ad-791660ee70d9","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":151,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"d5170882-609b-4a6c-b66b-0036424f196d","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":151,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"ada09280-2977-48e5-b6d4-ca3b39d7d8cb","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":151,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"84708846-d530-418b-8f01-6fe7996682a3","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":151,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"01d97d43-964a-4698-b887-1f1d5759a27b","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":151,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"b27d285c-7587-4b65-b62f-daf3728796b0","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":151,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"59d60988-edcd-4167-9966-fca87a79dd2c","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":151,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"aed340a1-03a1-437d-a941-cf770811b831","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":151,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"ad1bd52e-9a0f-42b1-a5bb-b14877d02d41","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":151,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"9fe4c0d1-fc5a-4005-909e-84749afbeb98","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":151,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"88332ea7-7fb7-43b7-b9d4-e5c6d72b68ae","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":151,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"2ac894fc-6469-4dab-91f8-d2776077112a","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":151,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"0493c3f3-bdda-4b94-9d6b-122db44e54ee","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":151,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"d118649a-8d10-4615-b6de-f412e8fb68c9","block_type":"box","text":"II-115","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"01bb5170-26e6-4e0b-888d-3fa986bc9716","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cb31c8e0-f8dd-4110-b6b6-e7f23068bc91","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":152,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"97c77291-db57-488d-b257-2f81781bac8b","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":152,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"3bb1dfac-28c6-4275-9784-8b2daa076be7","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":152,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"f36aa79d-683e-42a1-b995-c1ce6c0631c8","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":152,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"34557e8a-6eb0-4cd0-ba10-d8642adab3d9","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":152,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"a067eca0-85e1-49be-96f7-3daa155045e2","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":152,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"6fbd3375-6da1-4f95-a2d3-9d306d9a3afe","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":152,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"096b0c7e-acd9-4736-a21b-402be572a541","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":152,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"6ad089a6-b4d4-49b2-891a-d10d74bed301","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":152,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"80153d3e-ae47-438b-bbf8-ed6139c49ceb","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":152,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"9c91aca2-18ea-470d-8931-8d1a2e64e42d","block_type":"box","text":"Redeem by VRU:","page_number":152,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"ca4a3f28-6ceb-4cf2-9803-7b152f0fa215","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":152,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"b208d61f-aa6a-480d-8187-4b9a99f05497","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":152,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"3fd588c5-5bd3-4769-96fb-46d33c134839","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":152,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"fd0b2cef-e4b9-45d9-ac02-18123ce08e29","block_type":"box","text":"Redeem by Internet:","page_number":152,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"eafac776-c055-4189-893b-b355c5a10e74","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":152,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"4e7b0858-bd71-419e-a83c-dcc0f3a61dda","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":152,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"75f6058f-a7a6-4de4-87f7-80e569c65545","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":152,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"e5d37323-9c5f-4ae1-855c-71859f26fe9b","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":152,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"c0a7fb03-347d-430e-8dc6-f993086ba0ec","block_type":"box","text":"institutional investors.","page_number":152,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"5c49d244-40b3-44a4-8573-c9b48d700b97","block_type":"box","text":"Redeem in Writing:","page_number":152,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"ccc30b16-0aae-4953-beed-a1efeb0b0fb7","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":152,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"147c95fd-e458-44c2-8a0b-60f17d7d8d75","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":152,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"3321c1eb-f6f8-4fd2-b36e-b4f6cd55eb7f","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":152,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"35f4e579-5add-489e-9593-cae53347ed60","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":152,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"42c02158-1023-49a0-9dcc-ab369dd2c2ff","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":152,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"fefe9d07-142b-4269-8dab-e80b6d0f9eaf","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":152,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"6ad53980-881b-4623-a25c-31ad0d615d3d","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":152,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"eb865a2d-2377-41f6-8672-8b71101181d7","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":152,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"c3b0e3b0-9eaf-4000-8570-83d462d56d7c","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":152,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"d0a1b521-fb2a-4f4d-8d41-fe73470e35da","block_type":"box","text":"or wire to the bank account of record.","page_number":152,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"28565db7-0e03-4289-a6b8-79f70653f01c","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":152,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"7f6daebf-368b-4d99-b5f0-d26dc748361a","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":152,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"a0af3f42-d7ec-45cf-8396-488ed0c86f77","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":152,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"8d1899f7-95e6-4bed-95cd-9a9568f07087","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":152,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"40f170ce-9ae5-4105-961f-d31d6c157f08","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":152,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"ac991366-6ea3-45d5-a413-8ad0c2082365","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":152,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"38b13066-6e4e-4e36-9410-852f00b11f3b","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":152,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"b2bcb969-e99a-4e40-bd18-c3de1d6863ce","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":152,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"2bd0c3cc-f6bf-44a2-8eb1-c833b5d33279","block_type":"box","text":"redeemed by the Fund.","page_number":152,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"31e818e7-fa7d-4c0e-9296-1980ee331c8c","block_type":"box","text":"Note on Low Balance Accounts.","page_number":152,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"2c243754-c055-43f9-a7c6-230e681baaea","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":152,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"c29a19c2-888f-4a4b-a2c6-0ec424a6453d","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":152,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"cd8ac031-1077-49b7-8174-021e741dbf37","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":152,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"7b53d98c-b03b-4808-b5b5-ee302d8a68af","block_type":"box","text":"for any reason, including market fluctuation.","page_number":152,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"de3252ea-4850-4c36-a094-0b9579303abf","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":152,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"af20370b-2e6c-45d8-a2bb-7fe74b108893","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":152,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"5c20ccff-d267-4b17-a688-7299d68863ce","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":152,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"a8950289-4407-4ce8-adf8-49cd10d37bd5","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":152,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"c20c6e2c-b278-40d9-87c9-5a898832962d","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":152,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"8506388a-eac0-47c4-a6bc-738aeb123755","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":152,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"ed246770-9eb9-41a9-bf51-23cfbc1ed192","block_type":"box","text":"Redemptions in Kind:","page_number":152,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"877be78c-34da-4f36-bf11-470dbd049fc6","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":152,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"1d6cce46-98ac-4957-9fec-295a96b03090","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":152,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"54a50cb2-12f3-466a-aa3e-6d7fc76bddd8","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":152,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"2ab4b6a1-c676-4a9d-ba87-22ae328a7b3b","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":152,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"3a1788ef-0e85-47ed-9b14-8ea068140513","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":152,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"5ac1c872-2b6d-4f90-8ddd-f65a8523f8ae","block_type":"box","text":"II-116","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2155a276-d95b-4020-8cb2-16c4a0749096","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bdbeffbf-36b7-4d57-8eea-29d908ec4669","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":153,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"9d010367-a027-4e70-bc6d-6532696eeb74","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":153,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"d57aeb06-bf03-45af-9466-1bca92824b77","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":153,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"0be299e7-03fd-4298-9899-9319a0911ef0","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":153,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"22614186-067e-49d8-a8cf-c0aa2fc1b670","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":153,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"ca97a299-0dec-455d-afef-48b4886f849b","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":153,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"642a910e-8201-4018-a1ef-249029002259","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":153,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"6df3ce07-b95c-4e9a-840e-7a48aa9c542a","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":153,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"1812159f-f526-4d60-a6dd-61291a6b0aef","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":153,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"5debb6ba-2f8c-4785-ae5d-d33c60a8505c","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":153,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"3793cf27-e453-480d-9453-f037e8a85803","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":153,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"bd8907f4-66ed-4a77-bcde-eb37dd9c2d51","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":153,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"480f664d-2e04-4edf-9ced-7b586309ef1e","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":153,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"1c3f1662-1330-42d9-a368-a0986afd2f2c","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":153,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"8bc90517-9dec-4207-a517-066f42ce5da7","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":153,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"189dd2d0-7fbb-4312-be22-711204400bbe","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":153,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"a128f504-5cf3-4283-ba08-f8273a60bd76","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":153,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"3871dfa7-e24b-4e41-883d-69c1946ab692","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":153,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"37be4a94-6192-49b9-866f-53fb327ed3f0","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":153,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"a1b12f19-6883-4441-8a13-eef4e1cdedfd","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":153,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"01f6bbe5-9825-4bd4-96ca-82f1a9c61811","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":153,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"c0e291d5-8fd1-4be2-8390-af816ca728e0","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":153,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"6c59f237-e0eb-4b1c-860e-ad4b3013308a","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":153,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"d7de5365-ac42-4130-99e1-bc85389e6a9a","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":153,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"3ffbff96-7bee-4524-a8e0-67b55a8c6d41","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":153,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"f7df3254-132d-4dd2-9322-7d47575060b6","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":153,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"1d90df0b-a392-4b0a-aa56-3e695b61f319","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":153,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"36b7eda3-7a43-4f59-9136-25dfa4ec064e","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":153,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"4e7cef66-88ca-4f92-9d7b-06207bcec68d","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":153,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"8da0f984-2ce1-4e44-b5b5-a907aba3f471","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":153,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"4a2032ca-9724-4856-bbfc-aa5737b26a8c","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":153,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"9cac4279-365f-4e9a-adfb-3a4b4311ca4c","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":153,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"1cd90a21-d33b-464d-84ab-975992293a04","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":153,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"dff77dd2-6869-4664-8086-ef4c9cc247ec","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":153,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"3e2083a0-8140-4f1a-be79-5c3b5174d6f8","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":153,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"2006f5d5-a6ad-4bae-b01c-c9b60badc3e6","block_type":"box","text":"Repurchase","page_number":153,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"1a85bffb-807f-4c3e-a10f-914f612d8845","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":153,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"267fbdd4-91dd-4569-8ec3-7d2bdd88c960","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":153,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"d4a38557-9c3c-4070-ba6c-1d72958c873c","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":153,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"c2e3aca5-b849-4139-a492-adb3f9fb34d6","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":153,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"1526d51d-98ca-458d-b562-b43f8f4377ae","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":153,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"e74daeef-2095-47e7-a3be-06519f6e318e","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":153,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"00faf7af-419e-4a22-b521-28def0141b49","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":153,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"0cb1d6a6-c288-44f4-b57e-ed6d7eacae72","block_type":"box","text":"next business day.","page_number":153,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"6c14bbce-1219-47a6-9521-641288947341","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":153,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"52ac8875-5227-43a7-8b0d-ea5c94a44e4b","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":153,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"c6989941-9011-49a5-aeb9-6a310d931ea2","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":153,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"b640bacd-9a4b-4fb0-9cd8-57b4cb2db20c","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":153,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"5c352392-332e-441f-9f83-f7c3944e71ed","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":153,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"87a626ed-5e4f-4cc9-8462-f3a7bbc4539f","block_type":"box","text":"redeem shares as set out above.","page_number":153,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"6a3b92a0-e6ff-455a-b897-6cd1911d8d28","block_type":"box","text":"II-117","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b38b21db-30ad-4f0c-9c3b-5f103b0eb8e9","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99f3f341-9cf5-40bc-8655-e8e2e03087ff","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":154,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"13f45625-c1a2-46b1-8e06-8fdd33935b92","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":154,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"2a7cb53c-cdf9-42e2-9845-bdc77a018a9e","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":154,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"1a5c9092-0e2d-4762-bbd0-45efe285388e","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":154,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"7ed440c4-5c6b-422a-96cb-e2aea8630b23","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":154,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"c829e488-539d-4e1f-bc2e-8bea30babaec","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":154,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"c02451ae-6d8e-4f30-bbad-e3cde0f29cb6","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":154,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"b19ebc9e-e52e-4c97-a365-5043a5be750b","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":154,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"4c3afb93-a82c-447b-b32a-804792b899d1","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":154,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"6834e3da-bd48-42df-aea6-7fd2285fd9e6","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":154,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"7fe99542-b35d-4b1b-b096-853160581381","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":154,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"08b31a90-c79f-4d10-ab6d-c79261a7d48e","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":154,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"66c7a76c-985e-47ad-8a2f-09202d7189cf","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":154,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"43491b83-70a7-4d17-8107-331626d37be3","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":154,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"fb1f3666-4fe9-40b7-bdc1-499fe0ab9caf","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":154,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"a5b26328-fff1-41ab-b858-eabcbb6195e4","block_type":"box","text":"Investment Account","page_number":154,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"9ebdc0d6-8e2b-4652-8cb9-16628bfeabe4","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":154,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"d221ed73-6181-4e69-b757-d07294dacb61","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":154,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"f4f0f073-2527-4fa2-bd87-fadd1fed7f4b","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":154,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"d94eede8-e9ec-498f-8450-88c96a07ea82","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":154,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"9383a39e-d011-4cc8-8456-fed4796f05bc","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":154,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"058a88cc-0370-4e9e-ad7f-78141eb5af52","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":154,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"35d22f74-d9d3-4f14-b8ae-68142d7cffcc","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":154,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"30b66271-8196-4452-848a-9d2f9afee90d","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":154,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"0c7d2a9c-8aeb-43b8-a643-59ec42ff6c63","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":154,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"5e35ac1c-c089-4bc9-b225-f342a5ccee45","block_type":"box","text":"automatically at the Transfer Agent.","page_number":154,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"af604f89-4527-4c26-8caf-8f199e082550","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":154,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"a3bd700d-770a-4624-9e0f-4970dc654eb1","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":154,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"e5bfc5a0-4dab-4a8a-ac4e-2ec1f29148ef","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":154,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"fb9c1945-3300-47f7-8c7c-48b915343b5b","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":154,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"d9aacdf4-025a-46b3-84a1-cabcc952a2b7","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":154,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"610c78d0-7312-4002-8580-ad84fbc6afa9","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":154,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"f7574e72-11c4-4933-b8ed-ffec568d7b66","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":154,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"3b95d3eb-6e5b-4f47-b96d-bca0d8c05e92","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":154,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"684e2ba3-fcdd-4948-81bc-04237fc545ad","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":154,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"3c22a3f9-bf87-4ea1-9793-bc66458a569c","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":154,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"da96ed29-5de2-4755-9ae3-31a84df0deda","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":154,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"86eb2a52-5f18-4901-87a0-bc1aeb5663a2","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":154,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"fc753a85-a4b4-4ccc-aaa2-cc2942f3c23d","block_type":"box","text":"issued.","page_number":154,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"3163ce43-2f48-4e75-845c-ff39b4f0ec0a","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":154,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"af7da197-f11e-4cd8-8f4d-8cb6cde26b51","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":154,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"85e028a5-17ea-426a-b1cf-506e2d8f9116","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":154,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"e12ef478-e1fa-44bd-90e8-c7090fd3b4b1","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":154,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"f1613e4d-053d-4018-8927-71a68845a517","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":154,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"89c7a3e6-607b-4b2c-b8ff-25aecccc86b1","block_type":"box","text":"Exchange Privilege","page_number":154,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"8d4b7e0c-b1f5-4815-ab72-f02a3b0ff659","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":154,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"9c2ad2ab-439c-4a29-8a38-10e3e6ce9c4a","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":154,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"e3aa00ec-42b6-4cec-99b1-6a904e0895fc","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":154,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"0ebe63cb-0509-4b69-b80b-826a120ac0d4","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":154,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"56da9281-9cf0-48a7-b6cb-3291618e561f","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":154,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"f49db09f-7a2f-4512-80ec-ce101f7562ba","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":154,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"4accccdd-3b60-4e31-a32a-8a73bc038e9f","block_type":"box","text":"II-118","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"22890b03-00c3-4e60-8865-5fef1aa00603","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1c5579f-4043-45a0-b76c-179acfcc2510","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":155,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"aed54adb-c787-409c-a669-80e3f826fc83","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":155,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"de14f57b-1000-48d6-b334-4c332e1551a8","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":155,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"8cacf755-d1b6-46e5-b27c-6afeac30d808","block_type":"box","text":"Institutional Shares","page_number":155,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"cd15efdd-c723-4356-8964-775608149b18","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":155,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"3d95af4c-135f-44eb-a4fe-4fe517fa94d4","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":155,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"3f5ab21b-dc9e-4b2f-a03e-1833f5a1efe0","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":155,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"e3878d5b-e6a5-4ec3-8345-69bf40c4a6d3","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":155,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"b5a9bbc6-b602-4e9a-a794-13440c5b9b3f","block_type":"box","text":"for Class G Shares of other Funds.","page_number":155,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"b3edc991-3daf-4d54-ac6f-0962aee40287","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":155,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"d87c6e69-0b63-4ad4-b6df-fb268888f419","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":155,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"b62b5dbc-ff1a-43d3-94ee-792901fe5557","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":155,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"cea6c3af-bf0a-483e-8955-f9a4e7856b52","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":155,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"94c9ec17-4741-4acf-9150-62db0b2cba60","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":155,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"452c2690-893b-4106-967e-eb2c5dc2338a","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":155,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"6eac8424-0aed-4ea8-a65e-b3dc566ccc58","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":155,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"a194e2ba-2581-4754-b2e1-f5854007fb0c","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":155,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"cd885c09-ce84-4909-b326-7d89a65132e4","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":155,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"60415ea7-6bbb-4280-a837-e5014b81d084","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":155,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"4ddbe23b-b284-44a6-acac-93a6a7894066","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":155,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"55510954-741b-4fab-bafb-4e5d2f47fbb8","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":155,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"b9d8c152-7fb2-46ae-83c6-5833c8ebceac","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":155,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"8a47e4e6-8d00-41fa-96bb-ad8ca4af0665","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":155,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"63063372-4ced-44ff-9277-32d2bfccefb1","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":155,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"bf3689b6-f129-45bb-9c09-55f83327d288","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":155,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"2158698c-a516-4322-85bb-38c617931b55","block_type":"box","text":"Exchanges of Service Shares.","page_number":155,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"9262e33b-fa33-44ad-aef1-dea15019b570","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":155,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"95b4c6e3-a8f3-4a3a-a267-e66dd56268af","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":155,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"c425e8f7-a32d-49ab-bf28-97d2d5e82910","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":155,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"7a49399b-cdf2-4991-8f77-93ae80c44ae2","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":155,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"7aa8c3db-50f2-4dda-a16c-1f68b826f9a0","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":155,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"9a21d7c5-30f9-4abc-a97f-847a12a998c0","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":155,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"3fc085ad-33bf-4878-8abb-45582bdf864d","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":155,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"8cb25794-ea6f-4694-b060-a0b10dc89d1a","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":155,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"115be6f0-b3a4-42a6-8893-a44d5fb287a7","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":155,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"3e260b3f-c8b5-4b2a-a1a5-9db7b71b378a","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":155,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"b8969f60-b632-4b3f-8f17-8629248cd64f","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":155,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"9e9d04ab-566a-49a1-a3a7-bc1f5a631cbf","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":155,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"179cfd9e-09f4-4167-9fa9-c170d72f392d","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":155,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"0bfcbfc4-9248-42bd-8891-82dc3fe72ebd","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":155,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"32d585fe-950d-4ea9-ab1a-d090a96c36b3","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":155,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"63e7b952-735e-47c6-87da-198d5b4884bf","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":155,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"418a6a12-4f5b-4c3c-9bbc-dc8d7d4e214a","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":155,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"49599fe6-80a5-40d8-a14a-872f4278528b","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":155,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"2855aef6-f2d8-4569-8f7a-0bb74732fd82","block_type":"box","text":"exchange.","page_number":155,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"bef99d5c-3217-463c-84f2-7693c4070bf5","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":155,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"b3828031-d87e-43be-9e5b-f21906c7f12b","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":155,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"86d7f50f-cbe7-44bf-8117-d9aed1766d1c","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":155,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"0fa3fe74-02fe-4303-8966-e5dae03f5374","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":155,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"3f860721-22c1-40ba-884e-a71e01ece847","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":155,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"afbc81ee-a69d-48a3-8b62-e8b4d8b6610d","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":155,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"2b6f7b62-7374-4bbb-8675-4b613262f4cb","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":155,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"af260812-f09f-4797-b6dd-b3d5ae251ba6","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":155,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"973b827b-238d-4ed2-94d7-689bb0094050","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":155,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"e2771018-307d-4062-8027-559358cb82d4","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":155,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"45596135-9184-47d7-8d1c-85eafe185619","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":155,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"274c546a-d0fd-433a-993c-a630090ab959","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":155,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"45f198a2-1e58-4c09-923f-dbd0fa910981","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":155,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"d8435aae-df6d-413f-bf0e-90ab8584b7d4","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":155,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"e5a412a1-ea4e-4635-bbcf-e2de3bf76b89","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":155,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"0f90d346-87fb-42f5-a801-f5968fcf30b2","block_type":"box","text":"II-119","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"05e8fe7f-da01-4ae5-aa0a-16096485a912","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"556f0688-65f0-4dc8-bdf0-37b2fa5a90ee","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":156,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"8f01e7ed-5557-4f68-b658-a873c6f8587f","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":156,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"ab21e921-213d-4fd6-ba38-7887810cdad2","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":156,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"4f132fab-1d36-4a89-bf28-b48b5b75a7f9","block_type":"box","text":"Transfer Agent in writing.","page_number":156,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"a171fa90-9de4-43a4-bd83-9f5bb9989a28","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":156,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"08224d1e-571d-486d-b928-f249ea79e193","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":156,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"5c03b1f5-54b1-4b5d-9200-0be6a1def392","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":156,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"d38b6b61-6df1-4650-b533-172b72a59139","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":156,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"afc928c2-6f50-4c14-ae2d-1982494e1aaa","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":156,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"66b91717-cc60-4c00-8c56-72e07bf79d92","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":156,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"8160fe1a-ec01-40da-820d-34327528a3dc","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":156,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"7fc69889-14af-4212-bb77-d15d0d389838","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":156,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"a07202af-1e0a-48d8-9893-02124718aa71","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":156,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"d2c92756-bc5e-414d-b937-cc0ccf40e6e4","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":156,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"5a2a9eb5-c943-4499-931d-df7fd2e9304b","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":156,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"d26e9d7f-8b79-43be-9aec-9356e2690c08","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":156,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"bcef4857-15ff-4733-bc21-b51f8f4cc8ce","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":156,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"f568768c-fe1f-4651-bd0c-f27838a1f68a","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":156,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"bce63eee-363c-436a-92bb-6b7365bb10de","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":156,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"49a22c92-9ff0-401e-ae44-d96613141048","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":156,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"a233756f-9daa-45fb-afd6-1c7b218d5277","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":156,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"356e68c6-43e2-4983-970a-741065db2d51","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":156,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"6e657b6c-3b41-4220-900a-3282ab3c044f","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":156,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"ef684fdc-3feb-4c3e-b006-8487c22179af","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":156,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"ab51aef6-0475-40ff-913a-f642329e6c6c","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":156,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"8fb02393-a5d7-49b0-8f69-043b0ee7130c","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":156,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"0d0d5ce0-ca97-4d6d-bd0d-6e11ee3c7cda","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":156,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"3da7eb66-c5a3-445a-83dc-e3d3aea8b6d1","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":156,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"521db774-56fd-41a9-9056-d746d9829e03","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":156,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"61614e8a-e3d0-46aa-b547-378b66c9a613","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":156,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"19347f1c-cced-4178-b4be-f7347edc525d","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":156,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"726de954-c84c-4fff-81a9-cfe000398d30","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":156,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"d5fb3d46-8fca-4f4d-aacb-1601f3e56368","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":156,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"bf3c4e76-03e5-47fc-b8fe-ccfebbce1aa7","block_type":"box","text":"may be distributed by the Distributor.","page_number":156,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"3b968d55-9592-4e58-8d8f-6634e9426017","block_type":"box","text":"Participation in Fee-Based Programs","page_number":156,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"4dd7bd43-59c0-4171-a61a-96dcfcc7ff50","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":156,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"7071b065-f965-45c1-9712-825302047061","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":156,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"31f6591c-74c9-446d-adb6-8a97a38c8299","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":156,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"50ccafee-1237-4230-bc79-7abe928756a8","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":156,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"9cef6aa4-055c-4c5b-858b-40fb4ba69eca","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":156,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"c432aa3e-dea5-4082-9022-89bbc43e8823","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":156,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"28e4e069-fa85-4ea7-b212-a3720532bbdb","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":156,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"8d07e903-30f4-4123-b7d2-772562033005","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":156,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"ca04ca9f-4a79-4b79-a41b-841ac9941309","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":156,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"ae0f3c37-f167-4794-80dc-dfc6f85d84fd","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":156,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"d30e9942-64bc-4973-9cac-4f515682a217","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":156,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"fb7c2f82-573a-4229-af5e-3f8d6769f773","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":156,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"120e1461-eb3c-4567-82ad-53e586b7b1de","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":156,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"71b23a75-b9c7-46a5-9bda-d422c7321322","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":156,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"28a84ed4-479c-4e0c-88ed-f0b31a737e5c","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":156,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"0e58bcbf-62e1-4cdd-a40b-a5d72b7d5c8f","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":156,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"38432fc3-0343-49f8-96ff-dd338e6695d1","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":156,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"d1aa2e5f-da16-485e-b28d-47dbcbcace27","block_type":"box","text":"II-120","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a6e1bf4d-96c9-4310-98cd-cb954ce852f2","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab312af7-e74c-499c-b441-523d52215490","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":157,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"c4f2d90a-45f6-498f-8a60-6be7b3a5454f","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":157,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"5bfea4c1-81b7-4a71-99a3-ccb1f541ccd1","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":157,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"a739a5c2-3d6d-430a-bb57-d3555fede4ff","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":157,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"5bcfc56c-6d21-4377-a7c3-162d58b2da57","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":157,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"e7146c01-15fa-42db-b334-f5c61b40fbfb","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":157,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"77d7ebe1-c122-4a34-9a7f-08ee263f2bde","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":157,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"c3be26c9-c12e-4071-ab80-fa264874cb57","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":157,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"6d77992c-58b6-416a-9a8e-9e5c43fdb729","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":157,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"2c9bdd4c-ebf3-4c4c-8dbc-355fc34bb210","block_type":"box","text":"information.","page_number":157,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"df37c8a0-4dcf-495d-8da0-04751f0e7d37","block_type":"box","text":"Retirement and Education Savings Plans","page_number":157,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"4066b84d-7733-4974-bbbb-52c8e793eaac","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":157,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"52664820-9dcb-403f-aae2-3cd9c4e4c319","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":157,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"39a97bc5-863b-4239-a194-63c3f60ea783","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":157,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"77c62dcf-fee4-42d8-b1c1-74fe9e697611","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":157,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"5a39109a-96b5-4e3a-acac-a91a2e476ab4","block_type":"box","text":"your financial intermediary.","page_number":157,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"89eb2f27-0782-49a6-98c4-a27c5fe4f687","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":157,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"b375d7c6-80fd-4402-9fdc-2c5827b8724f","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":157,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"02c3c815-cda5-4c63-9303-be95283d5687","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":157,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"5f68dba1-271c-4a93-b6a4-609eaad2bafc","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":157,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"26dea359-efc5-49eb-b88e-fb5fed633829","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":157,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"e8c1e71c-7435-4217-9818-08cc7efb78a7","block_type":"box","text":"Automatic Investment Plans","page_number":157,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"30f65c53-3fbf-4bd2-8501-b46fffd7519e","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":157,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"dfa204f7-451d-4bcf-951d-cc197ad96de6","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":157,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"bf046208-af72-42b9-8495-008f86ff4bee","block_type":"box","text":"®","page_number":157,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"98c31aa8-cff1-4a01-a8ef-e7995c343664","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":157,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"3eb50c27-5308-4958-8d31-4e496403eb94","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":157,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"e6f6fb2c-b329-4312-811a-2d5bf757e086","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":157,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"b73c452d-6465-4ef3-9c81-b08f25385269","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":157,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"18cdd1ef-86b2-4444-a06a-38cb7b9a76da","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":157,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"008615cd-d118-45a6-9e6d-55726821eb96","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":157,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"9e51d494-dd3a-4a79-8751-5ee1203949db","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":157,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"f039d120-175f-4af5-83c1-d7f1c8d26d29","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":157,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"358686c8-6179-4390-b060-2702267b2900","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":157,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"28fd6690-3e68-4cf7-8b7c-934d54673c7b","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":157,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"425106a9-a268-4e70-bfb0-b960701e3596","block_type":"box","text":"Systematic Withdrawal Plans","page_number":157,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"06c4dd99-33ab-4bf8-a027-8845e3aa0a0a","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":157,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"f7073c1c-7022-4a78-9c83-ae3e3cce4b35","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":157,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"6215cc3f-4ae8-4105-8493-a47686e7fa39","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":157,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"334a8da8-e44e-490d-ac14-4aa649beeb93","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":157,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"3c01e378-7aee-41db-bc57-849c1f6a55ab","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":157,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"ab5f7b8a-f997-47b8-9205-a09b1fd802b7","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":157,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"fd64ea74-ce7e-44f4-b152-3a6a8ed2b5bf","block_type":"box","text":"www.blackrock.com.","page_number":157,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"9f87cd1e-ce28-4c69-a054-e24724506de3","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":157,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"dca16771-1ac4-46ad-b075-55496b8f6c79","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":157,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"436e11f7-e30f-476f-8772-2d6e7e220c87","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":157,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"18316aa6-ab9c-40e6-86c2-ef26736999cb","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":157,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"6438e8b0-3fbd-4be4-aa2d-1bde7df21130","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":157,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"ababaa9e-414a-400c-b9e5-77c718667f70","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":157,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"c5b2c7b7-8f31-42fd-9d97-2df7c015d9b6","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":157,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"b2d8fb12-f4d0-40b4-9f85-381a1a4724b9","block_type":"box","text":"II-121","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d88b912c-1a51-4eee-b496-b725d3409c39","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"26829905-63b6-41b9-b3de-a8d5ee23056a","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":158,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"3706468c-7268-4e7b-9994-329b49680f5f","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":158,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"c16b70c6-01f4-45fa-bdc2-cb8f755ed6bf","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":158,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"c71b25aa-6b43-41a3-91bd-32ec999d5c71","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":158,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"b36baad2-9d41-495c-b8b6-c929cdf54260","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":158,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"7c17f44d-b41d-43a5-92a1-5d158be01509","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":158,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"d1f2c02d-0079-4019-a5d5-e3a63aa0769e","block_type":"box","text":"Dividend Allocation Plan","page_number":158,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"2dbdbf6d-8909-4541-a58e-a3da00764266","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":158,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"ac641ab7-b8ca-4d8b-a3da-28dd93851881","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":158,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"f1c0c372-e6b7-4dab-9c25-576bfe0a0fd4","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":158,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"f2f2f00b-cf80-4014-a702-2017d0f8a14f","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":158,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"efe9f6b9-fce5-409a-ac57-0a4f07e27f2d","block_type":"box","text":"PRICING OF SHARES","page_number":158,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"64ff3f2e-8c9a-4a49-8442-c1f202ebd74d","block_type":"box","text":"Determination of Net Asset Value","page_number":158,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"2e3fa745-fee8-408d-9c30-3b5bafc3c90b","block_type":"box","text":"Valuation of Shares.","page_number":158,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"36922b06-3e1b-4018-b0e2-970cedb54add","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":158,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"bdc939ba-d692-4219-9dfb-8bbfc12f516d","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":158,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"c77a46ec-bd16-4436-bc4a-af49b6ae0bfb","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":158,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"429fcd4f-5b8f-412f-8f06-fa33fdc2219f","block_type":"box","text":"Equity Investments.","page_number":158,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"0d6f54ec-8228-4ea3-b5b5-bacd0764f762","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":158,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"15567702-82b7-4451-900c-3dbdb020054b","block_type":"box","text":"e.g.","page_number":158,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"181db65a-955f-4404-b747-5e5d8a9a0966","block_type":"box","text":", NYSE), on separate","page_number":158,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"5517fc46-0fb4-4992-a76b-1887b9e65ce8","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":158,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"43a6d7a6-aaab-498c-a57a-031d0c8e0682","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":158,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"55b4e555-630c-4dd5-ba2e-38d551bf8bed","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":158,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"50b77db3-9ea0-4a5f-885e-2759086d30e6","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":158,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"8eba9d12-3e2d-4b3a-909a-dbdf5c555dbe","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":158,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"32b03459-e607-4a26-88cf-a71436c0b07d","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":158,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"1f794a91-7914-45da-8c0f-8430a23c5798","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":158,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"015fa894-e4ec-44e1-99b6-8e89538edf10","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":158,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"55114e4e-f997-4bdd-b8d4-c8ea4b87e72c","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":158,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"a5cb38e4-c6db-42d0-9948-9c025de45f80","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":158,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"48fba8a7-353d-4617-9ac8-271ac7a5fb54","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":158,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"4a2a83a7-6dc3-4c04-a081-eb258e82cdb4","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":158,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"5cea626e-f3dd-47e9-a43e-0956b2e5621b","block_type":"box","text":"defined below).","page_number":158,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"f92e7d8a-9012-4346-8cc8-22a0139e2bc1","block_type":"box","text":"Fixed-Income Investments.","page_number":158,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"1f3c2aa7-5d4a-4a82-b7b4-0952ebb2ee94","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":158,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"6473b197-4f2b-4fc5-b9ee-a38b39f01789","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":158,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"ff95d4a3-f7d1-4a8c-bf01-694602b870db","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":158,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"c16b70b4-cbd9-4b72-ba96-c8fac5b0d90e","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":158,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"e6d9f6ac-2dc5-40da-a725-85f1e8ae2f27","block_type":"box","text":"e.g.","page_number":158,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"a5a9a5a1-1cb4-4146-920e-0ad673c2314c","block_type":"box","text":", recent representative bids and offers), credit","page_number":158,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"06230a26-ff13-46a6-8b5a-79c2bd5b3392","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":158,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"7df9d8ac-c920-400b-bd06-e0dd2ac5e580","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":158,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"d85aa729-2788-41c9-b06a-88fd512161a4","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":158,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"1bf34024-c3a5-4cf5-938b-eafa797b2371","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":158,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"c47b0b73-da96-4b2f-b444-1a7e6f968eed","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":158,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"b8868c76-d876-4e5d-8362-9f2c0d46c4e1","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":158,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"428009e9-7a16-4527-b539-09d975ed7404","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":158,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"8d3366a8-c037-43ca-9000-c10978b58343","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":158,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"dda47ce7-cddb-4b58-999e-3769362b38c7","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":158,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"031333f5-2c94-4087-8f18-0858bf2a68f3","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":158,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"72058b78-bce5-4adf-990a-ceca5fc76ef0","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":158,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"5ef713df-8aba-4268-98ab-34bcd85ed27f","block_type":"box","text":"attributes of the tranche.","page_number":158,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"6abd2afd-4db5-429d-a98a-422f5a53e75f","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":158,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"b72f1d05-e8c1-4ba9-ae01-8e540b3589f6","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":158,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"30e9f3c5-4aa3-4483-9b8d-b969fa85698c","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":158,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"3a33ccab-3443-4d37-b0c1-720aeb9149e2","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":158,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"9530ac11-0c8d-4ee6-af1d-fb3006750fbf","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":158,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"3f92e472-e9fb-4cca-b7d8-5882d7ee1525","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":158,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"e42c3608-70b3-43f3-b891-8e17b2522e65","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":158,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"47c369ee-c0ca-480e-90d8-e80f214f3d3e","block_type":"box","text":"II-122","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4d63815d-cec3-4307-a1c8-b6bde5d094aa","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fc9cf6c5-848f-4362-b236-7130b394b296","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":159,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"988244dc-dc52-45aa-9a09-2bc4de9f24c3","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":159,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"3f20030e-3c69-4c23-baf0-f222e39b5064","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":159,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"657bd103-1581-42d9-8601-2d83482229c3","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":159,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"505d7d31-7769-4b42-8274-493b9c1a5dd5","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":159,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"02e39314-030b-4fda-be86-59d52d0b3574","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":159,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"05871db9-0dcc-4765-bafc-ee65dfdfa115","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":159,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"e49c1c7b-28cb-424e-b5b7-8f5a18148b74","block_type":"box","text":"Underlying Funds.","page_number":159,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"cf8b391a-6eb2-4fd3-92a7-1a83ca377ae9","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":159,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"da75b673-6367-4e20-a56f-5fe56b21948e","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":159,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"8b55360f-3b95-40c9-b984-76a96315c5d1","block_type":"box","text":"at their most recent closing price.","page_number":159,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"4c9df6af-8945-4d40-a7b9-61d36dd95f59","block_type":"box","text":"General Valuation Information.","page_number":159,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"1c78082d-7836-4df7-9927-20e04993537d","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":159,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"bc565643-aa94-41e5-b420-3432793a2198","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":159,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"425d0638-8ccb-418e-b2bb-38b0a4e02afb","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":159,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"902da74f-dfe1-4645-96ba-d3f58b65c7a4","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":159,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"a5017013-689f-4524-854e-d102ddf96ef0","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":159,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"fa3b35c9-def8-4b4b-b8ca-408d67417ec2","block_type":"box","text":"the revision.","page_number":159,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"2ebb6562-0d71-49ca-897e-29cb93b1fe7d","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":159,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"83d8f6a2-e2f4-4464-9a05-7c5c53b9b02f","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":159,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"0acfbfff-214f-4ce0-bfb2-52bd90daa4b6","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":159,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"e4d80ec0-eef6-4173-bf75-eb622bc20bbe","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":159,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"6991281c-6b18-4a73-8a4f-bbdbc7acb7cd","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":159,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"fadb9202-27ef-47ab-ab5d-a2e1f9deef61","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":159,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"aa93febf-bf62-4df9-9c95-91f5c6b3a2be","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":159,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"5fb58dde-8a67-4afb-8394-84e396801b63","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":159,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"db6d40e2-82f3-44b1-978b-f520f38f1786","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":159,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"6a7ef751-6ac9-4a25-bad6-43caf2ee37ff","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":159,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"f10d3913-0b2d-4846-a93d-836689e7f362","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":159,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"b33c36ee-2052-4d91-9692-514891beff74","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":159,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"383d3385-5854-4e76-ac28-709cc493fd88","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":159,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"c78037f2-0167-44a9-8fff-6ec9abdb416c","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":159,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"46c48d13-2a55-45ff-b441-2846a15783f7","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":159,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"120b2186-9943-401a-b4a6-7a27e0e69f55","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":159,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"556d69c2-7c20-4cc2-8278-8a3fb17aa0ff","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":159,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"958884e2-e822-4e66-b1b9-69c4ef6a9045","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":159,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"a51d75cb-28d6-46eb-80df-478716c5072a","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":159,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"d8edc77f-b00b-40b4-87a7-087d63aac682","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":159,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"5d436985-a031-469f-8d61-13edfc791102","block_type":"box","text":"Fair Value.","page_number":159,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"8dad7d5c-098c-4a7f-b304-d966bbd38873","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":159,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"3b0e151f-7b3b-4f43-9193-13077f86c9f2","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":159,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"4980d920-46ba-4993-a4c3-12ca047e0bb1","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":159,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"f3550bb3-b5b5-4dec-bbf3-d08e7dc047c5","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":159,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"8b98f7ff-1fac-41f4-b0b0-594148674079","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":159,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"cf255f85-70cf-4086-a702-55eea78fd03d","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":159,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"655a6ef0-19d0-48bb-9186-81e8724b45b6","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":159,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"2609a843-895d-4de8-8da7-b01b29fff412","block_type":"box","text":"(","page_number":159,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"96a09885-ef61-4004-9abd-4d4bffff80e1","block_type":"box","text":"e.g.","page_number":159,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"4293a4bb-f11f-4587-aacc-13ba7f9b39b7","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":159,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"757a0028-b782-437c-b1f9-67dd81343023","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":159,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"c942c231-2dd3-4356-8edf-922a3a565cab","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":159,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"5234e10a-e7dd-4177-a37f-967dedb2f978","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":159,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"a5c47cd4-e4b1-49e1-af2b-f4cfa6238014","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":159,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"e04ff804-1f67-493d-91cc-36d8a6c67f41","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":159,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"8fd07769-3de1-45f1-9da5-636ed538ac1a","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":159,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"c4264eb4-f0e8-42b0-8b41-92a74d60fd6d","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":159,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"e58198ff-59c0-4c9a-b838-02ba9ff11604","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":159,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"d49c7f31-3113-472f-968c-8620d31d28be","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":159,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"2061c53f-ecff-41db-8476-cb043e40c64b","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":159,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"bcbb0b93-0229-4186-a963-9cccac6f9c2c","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":159,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"625e3e03-b708-44be-98f8-beec2e2dbd61","block_type":"box","text":"II-123","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"528ba657-7d00-4a62-8f2e-176b50babbc7","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1bbb674-017f-4655-b7cc-346c2cf8a62f","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":160,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"e8656367-d528-457a-8a56-305589759cdb","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":160,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"de399182-a3d8-455c-9655-eb551819723d","block_type":"box","text":"pricing time.","page_number":160,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"2786868a-2777-4e23-82cc-ac07d5e40ef4","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":160,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"560f74be-7d12-4fcd-b9d9-9a9a5291e3ce","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":160,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"b02ebac1-8e6d-490c-ba60-44401baa4aca","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":160,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"240c68ed-96aa-46e2-86c9-af42a457242d","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":160,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"a0cc5f13-4435-4b7a-b978-41de8ecd419f","block_type":"box","text":"assets and liabilities of the Funds.","page_number":160,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"2ca40b2a-ceef-4710-b965-957e36542646","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":160,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"6869a6ba-a567-42c8-9257-5c845a48b17e","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":160,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"4f1da795-9e99-4634-bcf8-69491d6ab48d","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":160,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"c85fc7fe-79b4-4974-a884-7ad5c2e82038","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":160,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"18fc381f-f1d2-4a78-b910-77a1b63e8b4d","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":160,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"79df579e-6cbb-4eec-aab6-4cc6f6daf69a","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":160,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"3b81dce4-ff8f-49a0-8ad6-b00578758215","block_type":"box","text":"valuation models.","page_number":160,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"d3d88b72-faa1-43c6-b5f7-dfc6eaa4d169","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":160,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"35ac8ef3-46ba-49cf-8837-4ba5bf8961a5","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":160,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"50ef18ff-7a0c-445f-b61b-640cc3e0dd2c","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":160,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"681f7972-35a3-4a6e-9c4b-ab689305205a","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":160,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"6199ccc6-54f5-4bed-90ba-2f7b153c67fa","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":160,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"966e963d-b3bb-4d09-ac5b-674e26af625c","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":160,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"7ab8228b-b0ef-44e9-9b84-60bf66fbd2b8","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":160,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"62488dd4-020a-44cc-bd9c-ac9750319371","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":160,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"944f1d31-b0a1-47c3-8fcc-b6f63a1f938a","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":160,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"56c2b795-5fc2-40ba-8cfa-99a5f323cb16","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":160,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"178a4a54-dee7-4c22-a2a5-569fa05c84b9","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":160,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"f307b46c-d1ad-4aa8-b141-e986159fec27","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":160,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"94fc7c4d-6075-48a0-9a7a-9551cd1f6029","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":160,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"f5abd53c-f73e-4cbd-a11a-f14ef52b6cf2","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":160,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"15f4c7fa-f93f-4587-8741-5f7f0469951a","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":160,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"10d82bd2-7de2-4b9b-88c0-7e580cb4ff01","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":160,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"8e78b7b6-73c6-4587-91a6-42fdfd5c56ec","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":160,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"352a0e58-0086-4072-af78-d79e77c3d3cb","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":160,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"39b3da34-d9d5-4f8b-ae4e-27135b2da72a","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":160,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"b5d8862d-cf6d-42af-be1e-12a81cea3893","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":160,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"5b1d5cdb-d7cf-4acf-8beb-fad53c7b2601","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":160,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"25bf550e-a115-43e9-a1ac-c077af7440a0","block_type":"box","text":"party determination of fair market value.","page_number":160,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"5cb1cef2-d2a0-4ebb-8ed0-d3977fe3357b","block_type":"box","text":"Computation of Offering Price Per Share","page_number":160,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"9a0f5824-1340-4b6b-a71f-842f2113e57d","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":160,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"f11fc01f-ad21-4f44-a8f1-5099b501ada8","block_type":"box","text":"the offering price for shares of your Fund.","page_number":160,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"08e2c5d2-ec06-4856-9a7f-fb5dea6cebcd","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":160,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"c6c0d076-b279-4d18-901b-a4152afc904e","block_type":"box","text":"Transactions in Portfolio Securities","page_number":160,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"dd095e10-738c-4857-baeb-dc8b643b4343","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":160,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"ad71f378-e7a6-49e8-b5be-c05614462599","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":160,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"aca35d2c-03c5-4b10-a462-7a7956d3cd0b","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":160,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"d5a10a14-8e99-4bb7-ad72-f4b209e19e8e","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":160,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"f68c83e7-14ec-4441-955e-16560709f7e9","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":160,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"5b1da11a-f3a0-4db6-b0c5-fb4b51ca3d10","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":160,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"ad684f8b-cf8a-46b9-919c-29e898ae4bed","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":160,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"72f8bfca-2632-4da2-93c8-0de1fc8623fa","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":160,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"be8ae82e-bdcf-4bab-8e69-4bae57063ec8","block_type":"box","text":"II-124","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5702ccd0-d085-4b4e-be89-335b25cf42a8","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b65cac63-9565-46e6-9d53-abe0c86b0c90","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":161,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"ee79cbd9-776e-45bb-96cc-584abd7c3f55","block_type":"box","text":"reasonable in relation to the services provided.","page_number":161,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"e7068ad8-ba11-41e4-b10d-6d17de65d9e0","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":161,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"ca4bab3d-ecf3-4028-9d76-2fdaa037c18e","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":161,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"5e2b060d-0819-47c4-aa04-a9b08d170886","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":161,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"57919999-67b9-401e-b6e0-8cca453c1120","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":161,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"ea1a81db-76a4-4de6-b5aa-2f8e354bb11c","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":161,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"d3a8ed2b-6613-4b29-b3b9-b19a7d4f196e","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":161,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"0984886c-55e7-464b-932f-6272d1fcb418","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":161,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"bfeea4c9-f52e-4efb-a626-114a78fc4ae8","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":161,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"598f7185-07d0-4c0d-b280-6c67aba6e732","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":161,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"ac8a3957-a753-426f-a30e-a471babfaf31","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":161,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"e2a452bf-6c3e-4e1b-9996-30066f682269","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":161,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"4d7c313d-a46f-4a0e-bfc5-d827fb83ab6e","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":161,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"86b765b0-3005-4810-b25b-93cbe9e527da","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":161,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"5738e534-3c89-49d0-98a3-d6663c739ffd","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":161,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"025cb266-fc8a-475e-a032-67f3030cb734","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":161,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"07a664a6-e77a-4af6-a033-77d64f846e4e","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":161,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"fe06c084-7674-44fe-8d2a-79223fbc82bf","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":161,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"12b3b980-f805-4467-8359-d41577380d98","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":161,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"ca2163fd-4884-4604-808a-1f8f575c2689","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":161,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"5b5da658-9fd3-4ad4-bcc1-203af8a7fc84","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":161,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"36cd34b9-81e9-4ae3-99e8-13d6bc873dc1","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":161,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"534f7767-100f-4501-b569-b7e52c5443a2","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":161,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"4b92d2b0-a4c3-4b3e-a5c1-7e29b4de69a0","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":161,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"f27de8f6-eb31-49eb-9708-ad6b081f7c8c","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":161,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"431b0e81-740c-46ed-a9a3-4e9035907215","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":161,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"481ffa3d-c6fb-46ea-a2b2-e0c48729ddc5","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":161,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"6f27dcf7-9b75-4aa0-b574-7683b94897ad","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":161,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"775edd39-ec52-4574-97d3-20165bb13ee5","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":161,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"d50f4cb5-e81b-4d93-8391-3d65435815c4","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":161,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"d3cdf332-9f03-44ee-8f4f-a96602c1c97f","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":161,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"09e3971c-348e-4977-87d7-ec48beec5e50","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":161,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"33d72507-2ea0-4fd0-8fa5-b0448c63e2f1","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":161,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"fa42680f-e045-4eab-97e5-9de4a3d0afcd","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":161,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"e825421a-e12f-453d-9956-2f6fa1142ed5","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":161,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"fa28f769-5bf5-47c3-aeb0-a3b0d7e9b53d","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":161,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"d81cb0df-fd82-47dd-a1a3-82afd8c1a461","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":161,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"1817020d-189d-46c1-991e-ac2937bed209","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":161,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"f742e6f1-dae7-45cb-bee0-6b628a22586c","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":161,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"63bce633-c070-48e7-ae8d-73e9e38a39a0","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":161,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"88f9e9ae-55f7-4912-a801-0c4a1eab2184","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":161,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"15e5d9a0-0f60-4e5a-bdab-539d9da25660","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":161,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"5f9a411c-6dd1-4e4d-8e6b-076a9f30e3f3","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":161,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"091c4cd9-3d5e-420e-b7b6-5037d338d1cb","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":161,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"ee386805-219f-4826-942d-698b43d944b2","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":161,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"b70fc80f-6d77-48c3-b1e1-789cc751ce9a","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":161,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"69947daf-a52e-4d03-8ef8-f2d8926e9c38","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":161,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"d21a219f-fb3f-44fc-a758-cee68856b11c","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":161,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"68d86f24-7e9d-43db-b29f-a57651479ea7","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":161,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"c473c53d-cfec-46c6-b542-141fe183665b","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":161,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"29e067a1-f9f3-4129-943e-c31ba4fe8824","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":161,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"c966c314-0e14-46f4-aeb9-f11af9ac39d9","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":161,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"07d556fe-9851-4a02-8c26-ce0ca64516ce","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":161,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"7d9e0cf1-00a2-49b8-86d4-03614bbe91b7","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":161,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"8e582bb3-d3d1-4231-8e9d-cec007e758c1","block_type":"box","text":"II-125","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"099d48ca-54df-4ff8-9f64-ced7e1af336d","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"10b9ba6b-2be4-4586-96ab-a18f167961a3","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":162,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"1ccd56f3-251b-462e-b182-92944e7f6642","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":162,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"0060cfeb-6520-4c20-ad19-f21b8d0e5064","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":162,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"ec5155dd-4d35-4c00-85e2-b288ab7e4652","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":162,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"66e6d071-d16d-45bb-8385-7645bb08b6a6","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":162,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"9c7c2ae0-c517-4f21-8e90-c44fd4dfbf9d","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":162,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"be671b82-2468-4770-97d8-00d647aae405","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":162,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"13a52e2c-8dfc-46e3-bfe7-d5ec55dd6ba9","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":162,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"60e332e0-217d-4b82-88ef-5f732f2ef3d8","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":162,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"77263913-d676-4c77-8537-359430351191","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":162,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"e1e123ff-26a6-4981-b7bd-a96387b9ef22","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":162,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"52faf1c9-6975-4581-b95e-c830c14d403b","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":162,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"318fdc56-f7fa-4ae1-8e4f-aa0b522598fc","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":162,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"3e429623-ad9c-41eb-91aa-2aa4fb16cf65","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":162,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"6bc249a9-98d8-4faa-9d17-95cc17ceb925","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":162,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"5417dab3-07a0-4686-abea-5eb459b81145","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":162,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"3bab883d-6091-4e45-b954-f823717731b2","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":162,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"3fc3318c-ac9f-4be6-ab06-e200eda55510","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":162,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"d9f7f888-25b1-4a2a-999b-a883203dbd08","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":162,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"345e4bd6-5829-4a4e-b1d2-0f4c29288bfa","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":162,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"6c7ee705-1c8d-4ae5-92b4-7b663354afe6","block_type":"box","text":"brokerage.","page_number":162,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"d2c96de3-59f1-48e0-801e-baa66e36357a","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":162,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"26eccfdd-57b0-4412-afbf-7320ec77134d","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":162,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"498ddef8-6c6a-4bcd-9210-c5bd65372781","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":162,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"7b6ca513-eb9e-4825-8171-726b1ebc4766","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":162,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"1f429bb2-2027-4412-90a6-890f5ae64827","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":162,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"7f55e819-4e43-4626-b8d6-1b181f447c61","block_type":"box","text":"Section 28(e).","page_number":162,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"a419dbed-643f-427b-9fb4-1e7fc79a9a2b","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":162,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"10a98ad1-6b6c-4d21-b195-82e8fd633a6e","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":162,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"a00083c9-e2b0-4f61-9663-eed452a48a95","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":162,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"a0419fd2-cd72-4ce2-ae94-df4a5d71e5cb","block_type":"box","text":"execute transactions for those mutual funds.","page_number":162,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"3844ca66-40ca-4e7a-b0aa-f7a8695ee058","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":162,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"2eff919c-939d-4487-9952-39254fd456a1","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":162,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"b22b37b7-f982-4e86-b314-4c3292520e51","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":162,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"871dcc4f-351e-4a52-bd74-2c74661e3d3e","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":162,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"a87c1b34-f887-48d6-9f8f-a98e4033e1c7","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":162,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"43e6f47b-e434-4fbb-9190-91d248d93276","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":162,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"57fea37b-6c9f-4fcb-9b9c-22c52b884ddc","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":162,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"1562a248-d873-401c-b5df-81f758e070af","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":162,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"76e15a7c-2aa5-419c-b3e7-4c68a07ab7c5","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":162,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"31764eb6-9f6d-402c-aea9-70d3a97aaa69","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":162,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"622b0f08-25f8-4cd5-991f-8b6ed11d16a6","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":162,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"ab7c1820-3809-498e-88e9-ffbae595d633","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":162,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"f0fef4da-a870-4aea-b084-987f15c5e355","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":162,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"be14af3d-d0bb-41c8-abe1-9de236b71c6f","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":162,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"6f8a2c0c-22cd-4bcc-aa14-daac109815ed","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":162,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"a621c45b-fccc-4a7e-b465-d6a334cb1e80","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":162,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"babc011d-e8ed-4095-8066-6a7e5ad75a30","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":162,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"f7f79dd6-3d1e-4d07-8607-ee7be81f412c","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":162,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"a621ee73-45f4-4a69-a919-06ec0411e383","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":162,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"efae93ed-351f-4295-810c-29d95ab34628","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":162,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"e1b28a49-8af5-40b2-b292-7f80a16c2e5b","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":162,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"801c4952-e831-4e96-a399-34ef058a8001","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":162,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"fa1f0b3b-74c6-41b3-a4e7-3e3e20b67759","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":162,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"bf967cec-ab65-4171-821b-293f430120d6","block_type":"box","text":"II-126","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"397bc58d-85b0-429c-807d-7c24ec8506dd","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"26002e4d-f2ca-4208-be32-5fe3d19c162c","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":163,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"20289bea-da09-4aa7-aee1-91ffd5a82941","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":163,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"84da3121-cd2d-47f8-85a7-33c9246442fd","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":163,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"5f9f5ae2-4851-4cfe-992e-36329afb3eb1","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":163,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"ff481205-1263-4f26-9498-cb02d3e14091","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":163,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"78b98d2e-9c60-4a28-a101-c95b652c3076","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":163,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"36c57ff9-178c-4bce-8ed6-255c37422d19","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":163,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"30d48e24-9ea8-4394-96a5-ec36017af852","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":163,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"17272f55-b965-4b93-90e4-025da4127091","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":163,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"15dad9e0-6b0d-4a05-b7b4-c398a11f68b1","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":163,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"39c8173c-cd26-4c64-be17-3ac0909881b2","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":163,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"c94632d2-7814-4aaa-b0ea-67d89d52965d","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":163,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"3adb144b-15cf-497a-a641-107457f9609e","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":163,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"62155901-56b1-45c8-b00f-1630d5383e5c","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":163,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"dee12642-ddea-45a7-98de-06b81daf4b8e","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":163,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"21c37339-6e13-4f46-a212-41d5f5d2f097","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":163,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"1079e4e3-3090-49ea-ac81-b58e9623fb13","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":163,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"06f32198-cd7e-4fb1-829a-c9bbb1324b41","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":163,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"af191bff-a06d-41f7-aeaa-60d9410e7c58","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":163,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"ab0f6443-fdc3-40bd-9b76-0be6aa9d7194","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":163,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"df3c9490-b051-49d3-bbfb-cde36d96489f","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":163,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"8a55f2aa-26e0-480b-b6c2-76cdae0c9dd4","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":163,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"6f316245-1c5f-449f-bbdb-f4c7eff35f62","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":163,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"bee44c88-732f-490b-9c3d-26e12bcd6071","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":163,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"c2eee07d-1a95-4735-a786-4dfa5e831536","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":163,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"c586dbc8-cc82-4bbd-954a-ff9aeff3415a","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":163,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"bedfa414-26cf-4aae-8ab9-6c598d44c623","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":163,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"46f3763a-dde7-491a-a5b5-4ba4ec1b76e6","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":163,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"37e1c43f-9338-4e0d-8f41-862a9d66064b","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":163,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"619d0ace-667e-4a24-b3cf-f1b8150d8539","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":163,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"91fa0f3c-e4ae-4fc6-b50d-21dbbf15c9e1","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":163,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"1e6ff37b-f5fc-41f4-9493-2cbec69b9313","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":163,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"3eeafc76-8a38-4297-b7c9-51b4dc12c9b8","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":163,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"4f46931c-b4f4-44b6-aeb2-992816c7392b","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":163,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"03941aad-2904-4f73-954f-5139dd3ee06e","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":163,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"80f79a8e-08c1-4120-9b49-029e3835a843","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":163,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"8a27d515-21b7-49f4-b95c-4b084f60595a","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":163,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"f663d12e-1568-4e3d-9f04-18d9c1a66468","block_type":"box","text":"accounts and compliance constraints.","page_number":163,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"27f2918e-d919-4403-b730-79628cbeb999","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":163,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"72299b95-2438-4920-a3dc-cbc48b18b8c0","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":163,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"9b68ef48-73c3-4bc6-9079-2f525cd03908","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":163,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"f15dfacc-8dab-41ed-bc40-4c011af0fad4","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":163,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"08c8beaf-a16f-4280-a616-6a3df8b4a3d7","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":163,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"759a00ed-1c05-4588-8e14-f0db6b339730","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":163,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"1aa9ff37-5fed-4002-92b8-beb0edfa7d42","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":163,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"d9b73ec6-963c-42e8-b3ec-9243a6fab266","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":163,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"a735218b-2a43-4180-a03b-73072f2c1ec6","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":163,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"54daf063-6fab-4907-80ee-57201f806a1d","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":163,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"f866dd44-cbe2-45d7-9579-8f697376aa86","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":163,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"2f4873b6-4464-4d1c-8a36-00d42d293927","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":163,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"f750341c-a593-4955-a266-797f7420f313","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":163,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"8d161ff3-449e-42e5-ae35-d910823e9ccf","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":163,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"259b4e5d-9cd0-49f2-bf00-8d925633b510","block_type":"box","text":"clients may be used as well.","page_number":163,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"35a60873-e02f-419e-8966-982e7e61f32a","block_type":"box","text":"II-127","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7ed6e009-800d-481a-84a2-fc4bbbe1263e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb9b7bf2-05eb-4102-b1e2-1a1c11c74001","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":164,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"e8a2cde8-0a03-4729-937b-497e083c41e7","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":164,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"ff62c454-1e59-4165-976e-ebcde01b5724","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":164,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"02daec0d-66ef-4e00-a62a-9ba8a29ebd6c","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":164,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"93c52e00-44c4-41c6-af92-72f4785df670","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":164,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"050b0ad6-72ff-4179-bb60-617f4bd3427c","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":164,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"ee2eab62-a8d5-4e0d-8241-ee5e20f58fd8","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":164,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"b8c6d92e-b2e5-4d0d-bbb2-afb082b1f421","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":164,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"50746714-b032-4c4c-bdb0-057639710e7b","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":164,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"f2f43423-9d68-4a07-b81c-52bb532a6d25","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":164,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"60957908-af07-4ba1-8243-edddeb187b35","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":164,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"1a1af53a-3e06-4c0f-80ee-a205e8ec5580","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":164,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"4f11015b-ac64-4983-8afd-e20dab53e087","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":164,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"2aa75f00-c269-4425-be77-de0311c67787","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":164,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"b700a936-c25d-4ab9-8504-376d78c573ad","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":164,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"9793e402-86d0-41eb-953f-22db84ff424f","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":164,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"13ddd1b8-6721-46c8-b346-00a02447de3e","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":164,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"d6bca5cd-1bed-4ba5-9fc5-d7c69ecd29e4","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":164,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"b4b81f20-b153-41ff-82f1-d801f1297a5d","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":164,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"3c411874-2559-42f3-9195-b61bd3a36071","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":164,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"6a244f42-d105-4571-a7bd-fe61f9a9faf5","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":164,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"f35ecb10-d17c-4f9f-887e-9fd621942df6","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":164,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"5504f255-a743-4415-ae66-d773f8ccb105","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":164,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"b67c1043-8b51-4d70-a603-d9b646aba0f3","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":164,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"bbcb21d4-1de5-4b11-940c-8d56757d4c16","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":164,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"62672ae6-7219-4e33-982c-8e1f8fa5b8df","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":164,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"19c73d16-7d04-4b0f-bf6b-f4a3b460425f","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":164,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"d92e370f-c5b0-4d2c-97f0-e0587a610e9f","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":164,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"a012e179-f959-4d8e-8b32-70d245957c90","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":164,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"ab3f8114-cbad-473a-aad3-089b74bb496e","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":164,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"3055a2b2-268d-474c-a220-3ce58f895518","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":164,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"779edd59-7d95-482f-bfa2-2375a06fc3f5","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":164,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"8d74171e-6b9d-4316-918a-e1f69fd9c4f6","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":164,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"927e4b31-51e3-4ec4-a7f6-70104a35c98c","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":164,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"59840ec6-22ad-48a6-8974-b16ea946a8a0","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":164,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"a5f624cf-436f-480c-9759-fa499ff4fc16","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":164,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"15cd5e6a-59aa-4556-afde-b72314114d0d","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":164,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"e957a3d0-65c4-4aae-a3f0-2a2c6579562a","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":164,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"40f6464c-ca79-4dd1-811b-f7b24bac82ab","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":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"a256f569-6ad3-4251-a96d-a4a99d1124ca","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":164,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"f7129f90-b4ce-45db-854b-68f521392a18","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":164,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"9f5e0ec0-8ee7-4b53-9cef-ff65943e08d5","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":164,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"3e906f73-cd9d-47dc-b4f0-01ec685d4016","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":164,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"b22f1002-5d0c-40f5-86e6-35bc1e25191f","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":164,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"f52ef252-963c-4756-806a-d4124162507a","block_type":"box","text":"Portfolio Turnover","page_number":164,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"43273fc9-d284-4bcb-a1fc-8c2df7cc2bcd","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":164,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"084e830d-6b9d-4840-a996-17ea1689d9b0","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":164,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"f2265f1e-17a5-4550-8745-062c7d0f9fc9","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":164,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"52d80b03-9da3-4989-b4f9-dd0e673c95d1","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":164,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"2227ba67-c590-4bc0-ac63-90cb8c7d8272","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":164,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"35ae5f91-8c5b-42c1-867c-257bb8d9bf09","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":164,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"dcb3ab9a-7299-4eed-a795-5a7bbc125df1","block_type":"box","text":"II-128","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f59a9269-2ea7-4a4a-bc81-3fc6d3c1d4bb","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f6f2d30-8588-4359-bebc-4e44d80bc86e","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":165,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"a29837bf-2277-4616-9f9d-0af1bdd5af16","block_type":"box","text":"Dividends","page_number":165,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"d2cb150e-0796-4455-85c4-6cb0faacc3ff","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":165,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"caf1b163-50b7-4797-9c9f-a6e8d18ceb80","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":165,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"89ee191b-b1b2-419e-b6d9-9845da823444","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":165,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"06c76925-521c-4995-9d76-2651bc60e3fb","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":165,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"965162a2-074f-48da-bd51-b73934bdbbf3","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":165,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"fb1b7426-5fed-44d3-afe2-57adffa83e41","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":165,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"ce44538c-81f7-4a9d-a13f-c85472c728f7","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":165,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"4cee7316-fd4e-40b8-bd6c-f679a6728a96","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":165,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"388944f5-211f-46cf-9f2f-3e45ae9dc54b","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":165,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"ac6ec8b7-9f91-4b75-9df7-e366161dc1b5","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":165,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"8ea62a9d-a114-4920-8640-f8376a6f2db6","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":165,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"a1b34d8e-3fd7-4980-925c-480a1c9907ac","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":165,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"58c31bca-b3b1-418d-813b-0e272fe798ba","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":165,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"21623eff-5caa-434d-94df-7dd8fb7919e9","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":165,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"b2a8c001-03f4-4dec-a630-9355064b22c0","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":165,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"8a46ada1-c0ce-494f-a645-2606904fc812","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":165,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"2e662d0e-ddca-4c79-8193-31f5aef9f14f","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":165,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"026cacb9-f3b4-4ead-9c92-4f87c93e1ef8","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":165,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"f33a509d-014a-4ceb-91d3-3757d21f9b8e","block_type":"box","text":"Taxes","page_number":165,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"825a3434-f2e0-4d72-8d16-d0dda7e7a6c9","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":165,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"319c7c4e-95a3-43d7-ad6b-069236cec0e4","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":165,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"307b8016-4758-4e3e-a80c-0b1cb3208da2","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":165,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"9108fc89-174c-4580-9dbf-5a2e9b349e24","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":165,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"aa86b76a-4d25-4e2d-8d07-09885507fea4","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":165,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"13117e2c-ff33-4d4e-8dfc-0df81fdd4fa3","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":165,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"fe46467a-6f5a-4aed-9549-f11babc4282c","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":165,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"0a878b4a-95ce-427f-bd7e-816b5536a4b1","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":165,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"9d8e190a-95c6-4665-a410-29f3d8c5a0c3","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":165,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"25f2715a-40e2-4e25-8343-e6bca55c44bc","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":165,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"753e1030-22a4-4eb0-b4a4-c77f024b8197","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":165,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"d876364f-1fc0-4a5d-b848-cc56276d8d71","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":165,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"5155334e-23c8-4677-b80f-9e1daac942aa","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":165,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"ca3e42d5-1325-4053-b5c5-98c6b5a02f92","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":165,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"fdf03c73-91a0-4319-9c93-58fc75b81e6f","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":165,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"68ea4a91-be9a-4ebd-b001-c34a3fcc346f","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":165,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"7dffef71-1577-4d55-94d9-b1eadd3492f0","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":165,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"ad611eed-a345-454f-bc04-b54bc9fd099e","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":165,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"63afaa24-9db4-4689-90cb-ff9c4a9abda4","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":165,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"482be83c-efcc-4962-b593-56ffcb22b61b","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":165,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"aab2596b-5a34-4948-9c6b-2a97e6f64584","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":165,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"a7e4d174-e9fa-403f-a69b-ab834c09d6d6","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":165,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"8321128f-fd7f-41a2-a868-c410df0c982e","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":165,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"b98c8023-80bc-4315-9d1f-9789296b8384","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":165,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"0df07a3f-1f98-4c95-81e1-25b12cced636","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":165,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"6212199d-9350-438f-85fd-bf3793fe289c","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":165,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"b3d4316f-0d5b-4afb-a5f2-a1e59234a0b9","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":165,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"298bd59f-c301-4f64-809d-e93cd912f322","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":165,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"357edbc2-0a86-4238-a0ec-8f3483fe24d9","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":165,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"e339ab90-93dc-4126-9cc2-b1d0a03c0d78","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":165,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"c6f63999-264c-4f63-8c06-41f4f1d60e90","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":165,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"fe9b7190-e7b8-48ad-a302-db195d520f6e","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":165,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"889cd5e5-f239-4cc7-9743-80d17454c159","block_type":"box","text":"II-129","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f295d775-f9fe-405d-84a4-77dd8a73d56e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0ffe19b-af05-4f19-94e9-76565a02e21a","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":166,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"0c17b8f3-ee17-4a76-afd7-c5a177cac644","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":166,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"988f4b96-3aab-4b8f-8b32-7ebcd27ac33f","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":166,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"73a2189a-0e61-438e-a5ad-b18dd4407ce4","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":166,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"03d0de05-0e6a-4de4-8500-05cf2a46e88c","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":166,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"8d83512e-6e69-4a3a-a00c-563f97433feb","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":166,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"c688d681-19f3-4bcd-b642-55043a5a26cc","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":166,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"4c20c2ae-a606-4875-92bc-1fa22302af4f","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":166,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"fff600f5-3551-4138-9513-af09bb4c7e2f","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":166,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"6a30a5b7-e991-424c-bc2a-f1f5cc1e2c92","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":166,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"2aad6548-234f-4de2-a48e-24a8fc408f2f","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":166,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"dc907ded-e0db-480b-88c8-6a4bb9a8a373","block_type":"box","text":"limitation.","page_number":166,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"d9fecefe-264b-4641-bc4d-bb865aaf385a","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":166,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"6b5f56ab-ed96-464e-9f9b-d4d9e11f1596","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":166,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"4b8ac6b0-4782-49a7-842b-5cd7b5bae3ba","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":166,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"45b7ba43-6a1a-408f-b3dd-26e2cdea51c1","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":166,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"ce237690-9722-4527-933d-f5df5507e010","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":166,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"c6774956-b009-46ac-a960-f181752319ed","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":166,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"99d40a17-ea41-40e3-9f59-123d8eed2cc8","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":166,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"cbaf7836-fa66-40ab-b6cc-f29f6600a3da","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":166,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"d252e18d-4f58-4f20-8cc3-590c233b2380","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":166,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"6fe65aa6-a0a4-491a-96b8-a728df1177dd","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":166,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"a9b7d791-0350-4f0f-90cb-ea3232c12827","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":166,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"2f885d85-4ce8-4c02-b502-daef0f702d15","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":166,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"a7aaef3a-f627-4ee3-989d-a4702cc97e58","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":166,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"a09b9493-bb7a-4332-bc94-2dbe73e468ea","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":166,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"0488256b-0589-4b4c-ad4b-d9f9e953850a","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":166,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"f0d64b18-e746-4c60-88c0-6c875884c62e","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":166,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"2a3a6ed2-5df8-428f-928b-eead5307e2b9","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":166,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"84bf24b9-2f60-4f24-b1d3-509216f0f1f0","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":166,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"19980f74-857a-414a-bfec-982b4c8b1c9a","block_type":"box","text":"constitute “qualified dividend income.”","page_number":166,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"9b7566b6-7817-43d0-97ed-db699c50e46f","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":166,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"d03bdb0e-a57e-40c1-a07a-e3593b5d3362","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":166,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"1b296f60-86c7-4f9c-b7bb-6f7630a9ca01","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":166,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"fa05abde-38cc-43e3-9085-bc47c6193667","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":166,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"b2ecdde6-a5f6-4d01-827c-1eec72cac670","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":166,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"4e31bf8b-fb76-4e6f-a90e-3b5901806cd8","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":166,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"919bf1ef-0c18-406b-a875-309022eab80f","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":166,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"535ff39c-2774-41bb-8bf3-92422e86ca01","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":166,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"263c127b-8be2-4af3-9282-d994077c02ae","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":166,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"34062089-452d-4e4f-a6ec-612407057512","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":166,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"67c5115e-212e-4fb6-abff-cb089572b873","block_type":"box","text":"against their taxes.","page_number":166,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"015e10c0-2f78-49c2-9619-745de198da7e","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":166,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"7f42826a-f2e4-4de1-8ce1-1e8878a069bf","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":166,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"fcb062f5-dcfe-4e8f-9468-303077ec1cf3","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":166,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"74fcc938-1a80-41a5-80ce-2fd639b4fcaa","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":166,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"59009b06-6d5b-49b9-b767-067b826b7411","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":166,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"52dc7cde-35e2-4950-a29b-6d40ea74cc6f","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":166,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"51b234af-45e8-4953-a34f-9501da761c1f","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":166,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"a23894bc-18ee-45dd-aaab-cc4d4cb90f0a","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":166,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"b45e5d65-f113-43bc-8292-02c396693eca","block_type":"box","text":"dividends received by the shareholder.","page_number":166,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"3cf753a4-4f6e-4a0d-99a7-ef4a3a6fb6ec","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":166,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"655ea9fd-ff10-4ed4-ba6a-499a0557928f","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":166,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"4ed0820c-1ade-4d3d-9cbb-06a0a27e41e0","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":166,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"6aa81351-6c5a-41b6-9a4a-4d63268b41fe","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":166,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"d3f7e406-7f56-4356-ad5c-7bdd32a2b501","block_type":"box","text":"II-130","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5ab1f982-f703-4aa1-bebd-918398b53605","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1d82e998-6854-4e9c-95ab-544558f376a8","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":167,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"26f50ac5-e26d-4cf4-be23-fbeb697a26a9","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":167,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"0b7441c5-85fd-4215-a94f-63d97dd820a1","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":167,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"934cb2b1-c91b-4599-b589-85221b2687a2","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":167,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"b510e324-22c9-4147-9a89-a65cda213c22","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":167,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"710cf749-d37d-4b06-abb4-cea75e1a0007","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":167,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"89e4aa0f-6a9e-4e63-8752-2ef357cdb858","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":167,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"55681b17-4ec3-43a7-918b-ebe94e3c00ef","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":167,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"9a204537-eee0-4cdd-84c4-d1dd7e7f0106","block_type":"box","text":"taxable year.","page_number":167,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"48c179dd-ad9d-4958-8c8a-7c7c3d14f8a5","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":167,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"9f401bee-4035-407c-9f95-e7a321493c8a","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":167,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"68191c2c-f92c-48ac-b77f-50784bd7db5a","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":167,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"e7a49700-b266-4e4b-8ea3-5cb0cdc62e93","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":167,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"37cf3cfa-0cf8-4684-9347-6e77e39589cc","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":167,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"ffc1efba-0a64-4c51-abe5-c844a3bb9eac","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":167,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"1031d79b-56be-4e1f-9283-ed592656c118","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":167,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"c1fb798e-4fec-483c-bf6f-8dc06818fc12","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":167,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"c728d489-3639-4aaa-88f5-83b5a50b8448","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":167,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"bd258632-bc99-47ea-b416-573228d8457b","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":167,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"3cabaf18-aaf6-4227-8fed-45a389fdd004","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":167,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"f055968f-709c-49da-9874-9f4e45eb6064","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":167,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"36cd6bcb-7d86-4659-9728-b1ee51a745bf","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":167,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"d25c1c5d-c318-4ba7-adda-152e14738f55","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":167,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"d7326ab1-99a7-44da-a700-34993b939bf8","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":167,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"196b5f6c-d66f-4974-b602-8923faae832d","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":167,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"f4eecb4d-6267-439e-b459-e6bd91f2e44d","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":167,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"66faea10-f242-4fb8-8983-6a1b49d4272d","block_type":"box","text":"special tax rules that apply to their investments.","page_number":167,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"43e9001e-c0e7-4667-bf2f-bb468997ce8b","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":167,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"871274cc-5a09-41a8-8dd7-6090d7dade27","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":167,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"07a2683a-e2e3-4918-8c31-3d3c19e9d79a","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":167,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"d2583ff3-3f63-4f2a-acee-f4a8f56d4f31","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":167,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"cfb4c2d9-b17d-4fb0-8b4f-c60816097329","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":167,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"606887a8-edd3-4745-85be-59819fffb814","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":167,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"a64c0d15-e01d-4fcb-b4b9-4b5ee80d7630","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":167,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"ebd4d83c-a9fb-48dc-a24e-d5a294df7ff3","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":167,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"78870509-2606-42e1-96dd-f90b7b38da53","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":167,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"249d21ab-77fc-49db-8050-d8dbd6db2980","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":167,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"bbd5b1b7-ea38-4046-bec9-4838ad8af811","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":167,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"62e605b7-d7d5-4227-ac4d-29205b426500","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":167,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"25d9c59a-5dca-4c1d-b517-a4023f9d60ed","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":167,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"bd5a23c6-bb57-4111-afa6-709ba5a2fb0b","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":167,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"1d6483f8-65c6-472d-a2ae-8166d4722151","block_type":"box","text":"redemption of such shares.","page_number":167,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"c76a74e3-1901-4026-9878-c618f7d6ed95","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":167,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"2010230a-77a1-4f3b-b159-849e561ab482","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":167,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"124e1dbb-6d1c-4662-ad6f-a4bc2550521d","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":167,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"ad59a856-3f1a-4383-97b4-9a3234409cad","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":167,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"e0546b47-7b96-4487-80f1-d4b7e74c1aa1","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":167,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"dde5d282-327b-4c13-8bb5-5b6fb0a516f7","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":167,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"61f91067-303a-41f7-9d09-282fbe006868","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":167,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"9080d957-1bff-4d91-8687-808d24a361cc","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":167,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"6119ae50-b7c7-4acb-a881-378de296348b","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":167,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"5703eaee-e755-443f-b70d-ff0429b3d935","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":167,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"dbda3ee6-3070-4139-ae2b-822cd93a3dc2","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":167,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"e1db234e-6c51-4509-8a98-2a30aff39016","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":167,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"2738bca5-6029-40cb-b5ab-73f3da32369f","block_type":"box","text":"II-131","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3e3bdeb5-4741-432e-bb99-03f95339052c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"125e517f-b8c5-4185-92f6-541886b2c692","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":168,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"2763396e-03e8-4322-bd2e-0bb6ded2ae1d","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":168,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"ba1c5433-b7ec-412d-bbd6-a1d66d02433e","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":168,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"7bce9940-d114-4bf7-9fe8-eb0ed9b31994","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":168,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"0ddd0a1e-2890-4d52-9332-51b240e2aa4b","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":168,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"af9b6f53-67ae-4637-a485-fc0efbd8a187","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":168,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"ce89a7e0-9cf0-427c-bc05-7068f04c7ad5","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":168,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"59cba7e4-0718-40f3-b232-22caed1b987f","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":168,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"dd5ecbd1-66b7-4cf7-a9a5-eda96526bb6c","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":168,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"84b96af2-19a9-48fc-9a5e-ad87b6d8e650","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":168,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"b2c4c42b-6bd4-4893-b4e9-bdc2514a26d3","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":168,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"2274edbc-8e5e-414d-95c7-65b2e69cdc87","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":168,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"5f4b6f56-0413-4e74-bd0b-94a98119e7d8","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":168,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"571479e0-8d54-4344-abec-731f9e96324e","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":168,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"3b0d90c3-0c93-4fbd-aea9-151db5f6e732","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":168,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"83083c3b-9976-434f-ae9e-f5028503a32b","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":168,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"a11dee4c-176c-4785-8b35-6b5f6c068f84","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":168,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"0f28760d-75cc-4c3b-909f-f576ecce3828","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":168,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"bd3fbff2-3ad6-4381-9d72-c5f215e43aa2","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":168,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"eaff074f-6f66-4d2d-913c-8255a7dc041c","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":168,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"772ca1bc-4fd0-4c2d-9cdf-00f71d98a6ee","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":168,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"150668a8-6a14-4f07-90e1-f707a5c219af","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":168,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"fc45a746-cd3c-4e4e-85fa-53cd9c7e4e30","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":168,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"3b195a8b-d1d5-4bf7-996f-ab15238140e4","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":168,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"e30f5578-e0f7-4be1-8d4a-cc96c1139751","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":168,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"cf865dc4-6a1d-4652-9f0a-2ebf80e5e83f","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":168,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"7d694822-4ad5-49f9-8063-e44477425a3f","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":168,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"2a54f163-7aaf-404a-82bc-2fe8f6c250b7","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":168,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"01e00d16-ac1d-42b6-8cc1-e8078ba609d7","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":168,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"a730c570-608d-473a-9df9-0bc19c89ae6e","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":168,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"15dfbb75-71ba-4b94-a72f-2856a34247b4","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":168,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"20837b1b-6106-432c-b4e8-0a29386bb81e","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":168,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"f9e7fac4-a02a-44f4-af49-19801f9c5d42","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":168,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"0d57e16f-ef8c-4484-ad17-a03ea01897b8","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":168,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"6db7a407-59cd-47db-be27-f30cf7d9ef41","block_type":"box","text":"in subsequent taxable years.","page_number":168,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"a9bcb3d8-0654-43c7-b9e2-47a92a8daab2","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":168,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"2a998954-2e6a-460e-a44a-ad2adabe443f","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":168,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"5ea31505-2150-41bd-9f19-9eac4ed6772d","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":168,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"e6744b67-0662-4b77-8250-6ca842adbe36","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":168,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"35cc324a-7306-4914-9760-313b62106251","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":168,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"61c7050e-9aaf-42ae-8c17-4d72f6e4c3a8","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":168,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"070fd6e6-9457-4c78-bac7-a4e11d001eb4","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":168,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"273df1d7-26aa-4ef9-9723-b78e6dd1b7c7","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":168,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"cb728429-d6e0-40db-8153-e88ca2a22745","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":168,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"898beb83-ca18-48d2-8c42-0f6326e724a1","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":168,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"60d4e55b-05ab-4f87-b23a-1fa0e6d35db1","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":168,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"d870750b-44b5-4ad3-8491-f9ae2da65115","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":168,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"e0c31104-ad55-4c50-9de1-448a5872ee64","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":168,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"a492fdee-ce6a-4101-b0f7-a73f65180286","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":168,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"d29adff2-c01f-481f-9866-241e671c7b65","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":168,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"5aa62a12-7387-4a34-8125-31ed9ab52106","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":168,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"801b4393-38b4-4b89-9e25-3ed0d3872806","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":168,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"1c1c4874-b87e-47ea-8275-a25b68e0ebaf","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":168,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"4838c1aa-41d2-4db7-9c0e-4a25e03d883f","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":168,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"a273bba3-7d39-4e3d-91a5-61271bc45606","block_type":"box","text":"dividends under these rules.","page_number":168,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"9d2880ea-0ced-44c7-9c20-72126af92be3","block_type":"box","text":"II-132","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8fce0b2e-a8d5-4659-b051-306da3c61f0b","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f85588ef-9cee-4f22-9e8e-3aeaa1506baa","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":169,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"b98c5b0c-4c3b-4fa7-beee-fcfa706a5089","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":169,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"cac27653-bc00-477a-addc-451af2e766af","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":169,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"eaef743c-938b-4627-80f7-ee7675b076aa","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":169,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"21164e10-d8a6-4aa8-90ea-bd6d92f2b1f1","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":169,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"885e21bd-64aa-42d4-8728-f3609309e979","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":169,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"1df389b6-e939-4253-9ea1-ee797a1e1c4f","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":169,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"d0469fcc-6e01-4418-9aff-429f0db8383e","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":169,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"9f3e6396-d965-45c8-8052-16308f11aeff","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":169,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"c7ae9a41-75de-44fd-8638-f49173753b2c","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":169,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"0f559fa2-66a2-4089-9297-db50964c7e01","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":169,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"201eb39c-bb2a-46cf-99f3-bde648c54783","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":169,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"e6811936-9a1a-4b74-95d2-8ae22108340d","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":169,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"a05b1022-ba8e-4174-ae72-4dbcdc9d6968","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":169,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"4bf13d6a-a170-41c7-a474-5e517877dfd9","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":169,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"29aed0f0-e480-4fce-a0cd-2644e69f88c3","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":169,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"b0fd48e3-065a-4061-bb41-4352377562ea","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":169,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"071a087b-5154-4dbe-9bce-a03d45fc92ed","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":169,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"f55e2950-fc42-47ec-8cee-0a64e05e3cd4","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":169,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"925c51f9-4b03-4b96-b97b-d11fab66e254","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":169,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"fc42ba5c-281d-4932-86c3-146590800210","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":169,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"ed15ea25-8a61-4bd1-a80f-7a26828cb227","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":169,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"934fa3b3-70c4-4c34-af7f-99b79a52dfc0","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":169,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"a03d48ce-0b2f-4891-b22d-9802ba670e37","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":169,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"8baf9cd6-f10f-43d1-828e-830d5e1c8c68","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":169,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"e16b5470-767a-4e6b-b203-c5f168458eeb","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":169,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"6fa30170-f2a3-4c05-ad75-c23e98994076","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":169,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"3ed53ede-acb8-4e9d-9098-f7c4429c0707","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":169,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"3c00d610-9ee7-44df-95eb-48f0e70a0981","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":169,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"fdc0206b-3eea-4521-a1f5-87162a174e2e","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":169,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"df1fff53-e682-4820-a6ce-f86dbca75677","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":169,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"3c4f6052-7725-48a5-8b70-e72c28c885c5","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":169,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"83c87961-552f-4e17-bc31-ac0270ae0e17","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":169,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"80e893b8-9c02-4d41-945e-5513e5f876e1","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":169,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"90ee1a2e-9780-4339-9e12-0752e8861f5e","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":169,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"784a9691-4f20-4303-bc1f-774fba4bc696","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":169,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"e0fa3f14-ca0b-44d0-b5b2-711e94b407f9","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":169,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"c250da96-ce58-445a-904f-299e4db44aec","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":169,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"2a712334-b0d8-4c3b-aafe-e6590d6d1236","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":169,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"2f64c831-cd58-4561-97e4-a73bcb06b5c6","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":169,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"d402cc99-087f-4581-a456-fe1b54fbb622","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":169,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"03061809-8d48-46a2-9835-de4156af9a95","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":169,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"e877454c-45d9-4430-a10c-8d9c794b9c14","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":169,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"dbd1808b-462a-456b-b272-cc7cf9da3c88","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":169,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"4c569184-186d-46be-b92c-4c8f8762ffad","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":169,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"12f7b202-abf2-475c-b3b1-db317b2b7217","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":169,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"18bfe664-53fb-48fe-bf7a-98cf1410c59f","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":169,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"63874251-91f8-455c-a5d6-fa7d16e71b58","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":169,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"7f9b9fbb-bb6f-457c-9661-d7c72f6e9a97","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":169,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"75689e6a-7b74-4ced-87b3-165b5c7438b6","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":169,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"85381771-ea5a-4575-bc24-4f1b301879ce","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":169,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"e509f978-882b-4369-bd53-84a320cbcfd0","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":169,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"9f1ceefb-a843-4f5c-a744-fcf1d30543ac","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":169,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"a4f41184-e3ca-4b24-b3a4-b98a4c64c752","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":169,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"24aad500-a7c0-49fa-8dc1-d5c402cb30e6","block_type":"box","text":"II-133","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"39ebaeca-a35c-4963-bc1b-1d6866609279","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57117a35-14bc-4f36-a54a-53b29e32e272","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":170,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"f810f6d2-2b24-40cb-b04d-6884d9148d5c","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":170,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"a169f5ff-9f6d-4ce4-b978-ffc9447c701c","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":170,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"7a1bf7b2-e315-4181-9281-c5b3463eadc0","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":170,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"23fa5239-57d5-4af6-86ef-da6c32ebe695","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":170,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"2a078bbc-2a83-4be3-985f-fe888b779067","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":170,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"f786c0a4-2b70-4152-921b-4fb28a74fdfa","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":170,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"4f831608-8403-4872-9d0f-6ef549d8b45e","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":170,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"19046d24-cd0c-4e3a-b425-75bbcc69504b","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":170,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"f22ba913-fe62-4e07-be13-846d56eac1ac","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":170,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"392e1c60-719f-4780-82fd-3a26b1a2dea1","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":170,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"d7dc1cf0-4d00-4567-85bb-625ed444d3da","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":170,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"6d7d3662-d6c6-47d0-b27c-3c03e938ca36","block_type":"box","text":"investment opportunities.","page_number":170,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"93fd3a19-343c-4ce4-a866-295f0fd9ca62","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":170,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"8eb128b4-31c9-4bf2-a840-36fcc48703ed","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":170,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"0df158ee-169f-462e-acd4-6df86605325a","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":170,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"23de9c96-b286-4e9d-a7b9-284a0096cb21","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":170,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"8c05d99f-45cc-46e3-b284-a584e4dd9ecf","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":170,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"fd2ab1c2-d363-4d62-905b-c369388a590c","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":170,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"cdf60026-7808-4160-9176-d9d5e4f707a9","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":170,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"1b4454c9-2123-4cc6-9411-ee05678831d7","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":170,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"d6acc7a2-cac1-4e27-9b8b-b2c1e5cabbe6","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":170,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"9bb28c66-366f-4294-819f-20068e3e5a4d","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":170,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"ae54f337-a329-4282-9d02-ba52d724f6a6","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":170,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"ed207b32-370c-4bdb-948c-b5dc9cca2482","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":170,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"b062e46e-5e65-4437-8e59-bc9128e749e4","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":170,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"5824b02b-eb4e-4ebd-9a8a-5790308b6864","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":170,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"ecc58af1-5608-437b-a574-b791d81bd52b","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":170,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"bd421154-0f1a-4ad8-b5bf-07f33a4f87b8","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":170,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"c42035ff-684f-4ef0-8d1e-1c44279fa570","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":170,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"234c9cce-433a-49da-b41c-1aa5eb9dabdb","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":170,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"72f7715c-7834-453b-b5b7-b5b67ae7cb17","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":170,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"0ee18731-0a72-4f55-96ab-1a7bfb57e8d7","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":170,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"70f677c5-e2b7-4e7f-80fe-d89aceb4261f","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":170,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"2ec5742d-0009-4b17-907e-637c72e5ce36","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":170,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"1400d2a4-a4db-489c-b65e-f3cfa8a3b6ff","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":170,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"dc6b87f7-0a1a-4521-b47f-10153a45cc33","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":170,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"5b5a53a8-726c-4ebc-9574-7d8c3396770b","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":170,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"19fdfd0d-54a1-46bd-9005-4756310c943e","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":170,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"2fba957e-687b-4b91-b44c-bcc4a3fa8793","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":170,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"1b26460b-7d5b-44a8-b0dc-62254b3ed380","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":170,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"1f88c1d6-9c28-4a33-8e24-0a875c8cc89d","block_type":"box","text":"positions in its portfolio (","page_number":170,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"1c3df176-d9d0-4636-8599-3a4f36a538a2","block_type":"box","text":"i.e.","page_number":170,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"1be4149a-c5b8-47a8-a280-e5e31952abbe","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":170,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"b046f207-a233-44d7-b7c6-e235e669416d","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":170,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"00dfd553-77c1-43af-a9f5-b5a6980ea077","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":170,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"29de09a6-c19a-4237-8d08-07a1b3f39947","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":170,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"9e7c7ad6-1d89-47c0-9ed5-1081014bceaa","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":170,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"87e74afc-48d1-4dd7-b458-46fb73206273","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":170,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"f3abc086-1282-4e8a-97cc-edc16c4d78b8","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":170,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"29275ecb-65e9-449b-a055-509bb5aaf33a","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":170,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"b2f68d6e-2a83-4c44-9135-4081264564e6","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":170,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"b48c8a06-a9ff-4d64-ada2-a5cd28c3f397","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":170,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"e15b2185-956b-4aec-8663-8e4e338d1262","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":170,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"735b731d-e82a-4e3d-b69a-87927f7ef3de","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":170,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"5ade0db6-60b6-4d43-bb67-6bbb78c2d7e1","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":170,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"f0e3022a-0d93-42dd-8c88-65f754ef057f","block_type":"box","text":"II-134","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f1b91b1d-9c4d-4d01-b850-4383a169f192","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bb79ce98-4c41-49cf-9f9d-18a27796b6c2","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":171,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"31a17c79-1df0-44cf-9bd5-c33a6456d24f","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":171,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"3abaedf8-d467-4da3-9ef5-738ca72e3d99","block_type":"box","text":"capital asset.","page_number":171,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"d24097d7-21ad-4ab3-9015-342f458a9d6c","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":171,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"d2e188bd-4058-446b-9b6f-126f57a29c25","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":171,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"3bfa0960-7adc-4e5b-8c55-6e63a071f882","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":171,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"3e8487d5-1c7f-4334-836d-03e89d6b7bb6","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":171,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"72880403-95ef-48d2-a526-428752bc685d","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":171,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"88482a97-4f5a-4747-8c9b-08f595c0bda6","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":171,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"bd9ffdac-3931-4dcf-9186-910f593f154d","block_type":"box","text":"Fund were to invest otherwise.","page_number":171,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"46d2d800-40d4-4785-b468-848d22ec9a7e","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":171,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"b8be9044-a725-4604-9e92-02e0817dcbdc","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":171,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"fa873183-6d67-4af1-a7f5-34290f6fc88f","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":171,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"e009ce4b-4a0d-42ba-a12a-5836b54f1978","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":171,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"7c21ecc5-3e87-4d9d-bc32-0cab1247d40c","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":171,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"883d74b9-855c-4b85-a874-9805b2b703b6","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":171,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"3dc793c1-4d78-454a-8afe-ef8841c4f403","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":171,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"638e0268-413d-4a33-a054-84b9fa5a3316","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":171,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"f178cdeb-4cbb-428f-8215-2bee7af69d13","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":171,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"316bb2a2-0b2c-445c-b0ca-a4b468789af2","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":171,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"29c3c21f-da6a-4689-b78c-a2ab81f4ce55","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":171,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"d386f9df-4970-4c52-8126-beb908322330","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":171,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"910c4a29-1722-4092-8f16-0dd709085b47","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":171,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"2ed8eef7-ac2f-4758-8858-2cea5a8f3cc3","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":171,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"1f2628ef-50d4-46f1-ab0c-1afe983cc2c3","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":171,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"219b33ea-1f62-4942-8cf0-596a4ecb1605","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":171,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"8c22680c-942b-462a-b1aa-b1473774acf9","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":171,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"dc8f3b49-335b-4e20-83dd-2df635b2e4a0","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":171,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"8bf7c28d-5d46-4527-8e9e-cf37337025db","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":171,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"22b67386-b70a-4f43-b730-9791a3991cec","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":171,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"d54fe06a-3584-4eb9-8592-9f81be45b41a","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":171,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"56a42346-0a84-49ae-8191-f88c4442da7d","block_type":"box","text":"PFICs.","page_number":171,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"167ce783-b6ea-458b-a413-0bfdf949dd2f","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":171,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"34e508ed-1dcc-4a92-9034-fb54df42974b","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":171,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"b4956ef1-757b-4def-9e06-758e1645d354","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":171,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"d0f3fb50-7057-4873-8ab0-114f4d8b4062","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":171,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"044fd125-e0ad-40d7-8e05-e6b27e573969","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":171,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"3e2aec30-ad14-41c8-b6f1-a0facad496a1","block_type":"box","text":"difficult or impossible to obtain.","page_number":171,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"cccee00c-334d-4059-b4ce-4fc0a8dfe238","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":171,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"4c05c561-40dd-4564-b2c4-50baacbfe0cc","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":171,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"4c3ebf1d-e023-4a8f-a867-bd2f86ab9f91","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":171,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"af8db177-10f5-4496-9f42-2d6d56cc059e","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":171,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"2ea0c408-163d-4362-b9f4-5bd6d1338e96","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":171,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"b86899a7-cbe4-4ec1-a171-d62d04efef34","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":171,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"465616e4-549b-4882-903c-fcb3842a00ff","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":171,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"5c3f4185-a661-4254-98f3-f8331c9e8702","block_type":"box","text":"Municipal Funds","page_number":171,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"d4587616-5e56-44df-a253-4b2e6d5be739","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":171,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"7e09d045-e7a2-4447-b12c-076235951600","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":171,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"fdd3404d-5a9b-42d5-916a-7829675a5995","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":171,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"b9eb7f93-a3fb-4d4b-89f0-28cce4d15c27","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":171,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"e447fb1f-25e4-4f11-beef-641796f11108","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":171,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"ca2a0ecc-ff38-4668-9058-c9026aeeb125","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":171,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"bb42cba6-3ffc-4074-ab3c-f062b7aed47d","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":171,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"53c067c6-723b-47da-a815-3102f401fda0","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":171,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"1b9524bf-9f4e-4f23-b5c9-b853cd11cccb","block_type":"box","text":"II-135","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"38d71513-4ca4-4aa9-9c6a-da55582f9b6f","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa61bb5b-93d9-463b-b1f0-332114fe3abf","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":172,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"4f5d7ac4-267f-4d27-9ce7-c6b5a6005928","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":172,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"185bc418-a667-4d0f-9903-20512125c01c","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":172,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"e2225f5d-6ca5-45b6-8285-d32f4908dfe9","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":172,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"a28c53a5-0aff-47f8-a39e-41694a7adf26","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":172,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"688c2c9b-905d-4ed7-93bd-2e867ae5e94e","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":172,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"5898dd4a-7495-4517-852c-ba6efb0944c6","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":172,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a52b55e3-9165-461d-97fc-1f389a497296","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":172,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"482af34d-4321-429d-bfaa-5eb0a3160b46","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":172,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"064ecbf1-e5ec-42e0-81d4-ca302dc3ebe3","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":172,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"43f8cc69-3cab-40e9-b635-cf9e9baf6c4f","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":172,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"4e78f77b-db27-45c7-9a8e-b3205f46e9f1","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":172,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"17d8efc2-fbde-49b2-b9c8-b080a31fddc3","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":172,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"1c415752-0628-4f0c-8bed-38cf90401fb1","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":172,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"0e31c1fb-6f31-4feb-bd8f-426536dd441c","block_type":"box","text":"constitute exempt-interest dividends.","page_number":172,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"4e0d7416-fac4-45c2-8b11-1e58f065c2a7","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":172,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"13fb9282-01f6-4187-9f53-decec2506282","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":172,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"d7b1f6f8-e170-4fa1-becb-a58badb0f2fe","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":172,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"601971f1-5ff8-4991-8804-e7336aefecb3","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":172,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"f4400c7c-e508-4c6a-8d16-81594800d372","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":172,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"b26cc09a-6677-48a9-bf36-5497d4461f9e","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":172,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"103ee152-76c4-484e-be62-f9811a12219e","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":172,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"e7fd706a-11dd-474d-947b-f29c9e36403d","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":172,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"e2e49146-d223-46ea-a517-28160b93adc3","block_type":"box","text":"income dividends received by shareholders.","page_number":172,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"7acd3ae2-e05d-4f8a-96f1-7494c9ccdcfa","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":172,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"83c443ff-aff9-482d-90cf-e2e0bb943db5","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":172,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"e88b05a3-ddbb-4008-8272-116ea96f58fc","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":172,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"e9a86300-2961-4bdc-83f9-325c84346718","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":172,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"65b5c661-f05d-4b1f-afac-0688c5340073","block_type":"box","text":"the accrued market discount.","page_number":172,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"2a5f8f72-a96e-48f7-aef9-06ae906e8c9d","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":172,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"bcb3ec8c-183a-4843-ae29-94f7bb8f89b1","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":172,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"9e9daa35-12f2-4456-802f-ab410d8bd022","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":172,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"feb9056a-8d53-439b-a763-6ceba7fb4327","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":172,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"d2cea3b2-f634-4296-b290-ab22d45a4b11","block_type":"box","text":"e.g.","page_number":172,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"1061e709-f769-416e-96e0-151c699aae10","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":172,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"a75cbb81-e855-4892-b92f-ec3c6ae7a22c","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":172,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"9e9fe69b-ef24-4f34-8050-68d496ef6003","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":172,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"145f05e3-abe5-439a-bc79-4b19dfc49e17","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":172,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"9f62c3cb-c09a-4fed-9573-75efbf7f3c56","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":172,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"3e419fe2-2a97-41ac-8519-f7bff7445767","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":172,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"86a24100-eebe-4058-abeb-8cb00a36034c","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":172,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"b2faf05d-c91c-480c-b8c5-df5b63763d94","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":172,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"91c823ff-18ac-449a-bb99-14ba76fd8bdf","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":172,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"9a429650-dd60-4397-a482-fb04ffc44c46","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":172,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"d4a7fd87-50cc-4505-85b7-360051276294","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":172,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"6639e377-1f8d-4b7b-a014-8df93649e75c","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":172,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"d27e7b0c-a2ac-4926-bb25-dffd492ee82f","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":172,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"0cf62a5b-8db8-420d-8309-37e26d917064","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":172,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"8a0bb1a7-a250-4cb0-a807-dcbdbab61fe6","block_type":"box","text":"within each applicable state.","page_number":172,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"ecb754fd-d535-467f-b531-e43b82165d93","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":172,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"2126239d-065f-4988-a91d-cd68d6b70a89","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":172,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"8697084a-9783-4bb6-804c-c88bde39ee36","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":172,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"a3a4944b-fac8-496b-b12e-4171466c5b1b","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":172,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"e58edb5f-5a3c-4e14-9524-24b26d09ec14","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":172,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"37d2fa9d-51ce-4877-9ec4-0c5591625267","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":172,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"a979ccad-362b-4bd9-93d2-a14079a2ccd0","block_type":"box","text":"II-136","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9bc8697b-13e9-49ac-9e04-4473555a0437","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"abdcf742-73a0-4222-ba2a-32ade2c32e35","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":173,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"19a8372f-5880-4938-82c7-19dff9209788","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":173,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"02574b61-ed24-4e59-8e00-496ec195c5fb","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":173,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"b5b6d559-77cf-43c1-81ab-b088ea7f686d","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":173,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"29e1eb75-9990-4ae9-81bd-fcab27577685","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":173,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"c181db49-9c14-4324-b7fa-9e6aa5a70043","block_type":"box","text":"exempt from state income tax.","page_number":173,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"c5e09eb3-1c50-4a57-86ae-da3cc875e9b7","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":173,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"ece9c245-92b9-45a8-bd5c-a2d3c5e3abf8","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":173,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"89ae690a-2dc3-4634-a316-8300560b9783","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":173,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"e06e8bac-e685-42d7-9e89-8a9f440f40ff","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":173,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"f53370c2-44b3-4765-9174-0da34d75170c","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":173,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"5dc81683-563b-4e79-9014-7a750b39fa70","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":173,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"6099c29c-3b6b-4ab1-bb24-1d0e85d8eb48","block_type":"box","text":"decisions may have a retroactive effect.","page_number":173,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"883617ce-1dfb-4c85-9062-29bea2705c59","block_type":"box","text":"PERFORMANCE DATA","page_number":173,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"4e0c519e-38bb-4296-8240-c1d49f23e073","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":173,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"482f5f41-7f26-4760-a60e-eef2ae77952f","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":173,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"6cd83b7d-734b-411a-b132-d0c7261ec54b","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":173,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"58e60719-97cb-4112-b7a9-c2cd55664029","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":173,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"8b5fa985-f40e-4b1a-a9d9-94adf6700e43","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":173,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"caffe84c-9bd8-4626-9b4f-5876a2c459c6","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":173,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"612b95b9-eb4a-465b-ae07-b710df12f6e5","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":173,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"067cf3bb-107d-4e7c-9eec-e7c279ccfe3b","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":173,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"27acb8e3-5df9-474e-a944-e71a9e4d4e54","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":173,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"729c0274-30d8-49fd-b604-662e0cb519d2","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":173,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"2b3da265-76ee-4740-b3e9-ff8b47bf567c","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":173,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"03df20ad-f17f-45ad-b92d-ef85f3f9cba2","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":173,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"5d2db534-d376-4cc3-a37a-c19da1aaca27","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":173,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"f0829586-8869-4704-a1a0-712143270db2","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":173,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"3dbe6fbd-be69-43f2-89e2-24bf905010b3","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":173,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"fb2daf9a-cb0e-4acf-af55-5f9ad33f0efd","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":173,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"50e4e4ea-04e7-418c-a14e-9faf9eb4be54","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":173,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"ea74db9c-900b-44f8-96e0-b77a97a72087","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":173,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"1cb00b8a-ff53-43bc-a6b8-9cb5b84ac8f6","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":173,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"b49b9205-5bf2-4b94-bef1-565dd8a0d702","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":173,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"cdec600a-5d2e-48c7-8b10-21fbbbd89a69","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":173,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"9d9b1e6f-a46d-4181-a10e-924015fd5cde","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":173,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"0299092a-283f-43b4-8369-0e1b5babdf01","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":173,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"ac80fa11-e6be-4629-820a-fbdaa9a79561","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":173,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"5e989564-e0dd-48c3-b091-38d2c8612fe0","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":173,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"3964947f-c036-4c6f-9e69-4a7c29dcc6ff","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":173,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"5057ffab-b8e1-408b-a08e-5431c0aca30c","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":173,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"74457b05-acac-42d2-8ea3-ad75ca331710","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":173,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"253ce7f2-caee-4cd9-9824-8e0d71bdfe13","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":173,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"d128b239-3a29-4e19-9215-0bc888b2c16a","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":173,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"21519f1e-c7d7-40e6-803d-d94fd9ee7692","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":173,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"0e472bf3-44c4-4bd5-b903-f3309108911b","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":173,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"42280b67-ec5c-479a-9c64-a0c432f84a22","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":173,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"ffc51694-2f07-46d0-9dab-bf32b510eba1","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":173,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"1e6a9c14-f5fb-4743-9027-ed701c685e03","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":173,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"897b41ad-2bfa-4766-84dd-f4402e70aa60","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":173,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"fd294905-1e8e-41b3-9db6-f755a29a13a4","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":173,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"451df356-c716-4d48-8059-503fdb779294","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":173,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"b1fee5c5-fd3b-44d7-a753-5265a9bc791a","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":173,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"15efca65-da6b-4f01-9870-f7302ab95744","block_type":"box","text":"II-137","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"91b743a5-9402-462a-8cf4-7ed46e0199fe","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06f4aa39-8a1a-41dd-8de9-493d249494f9","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":174,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"bff4598b-944b-4775-9481-e91e266bcf4b","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":174,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"bce03e38-9874-48f3-8312-ee2dfa534a30","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":174,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"34a8c2a5-aa87-40b8-8c38-6e58912db1c0","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":174,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"bbfe8143-6c8b-4526-a962-374c3ee3830a","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":174,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"6ce5649f-d279-47a5-85d7-9615855269b3","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":174,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"18344b28-cfa9-4d78-9fae-a6e166fa4aa4","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":174,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"0d117b51-edc4-45ed-8b24-7bba6c27323a","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":174,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"f2c08fcd-371f-4510-ad71-2a339b4e297c","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":174,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"13e1de5f-40fe-4a34-ad23-ae20fc57961e","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":174,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"874ef8eb-24e9-4023-9660-2de4b0a0a39e","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":174,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"47d4afa6-4798-4e95-b84c-67e5a8ce811b","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":174,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"474ecbed-e1e3-43fd-bdf0-5632c30d41d3","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":174,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"bbf10c5b-b79b-4d15-a115-3c79ec4de0dd","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":174,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"693c81ab-aeda-4ef3-a316-27d2340e8214","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":174,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"092dfc22-f013-4b6e-870f-59f926f3b3c2","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":174,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"598acbaa-d6c8-4f79-851f-304e5a2fd6b4","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":174,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"d94b0ad8-6911-4080-b31c-85937315fb4a","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":174,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"d1c8f7ed-9697-4bed-9fcc-408ac3cbfeb6","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":174,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"b59a628d-30f4-4f0f-a9bc-65e0d4675812","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":174,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"8549f07d-8b1b-4158-b246-30882fdcb4ed","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":174,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"3e0a25fc-29ae-4389-a00f-7f11d6f83ab1","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":174,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"0575a4b7-9195-48c1-b7f6-bd98fbd7de67","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":174,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"e6816b83-ea62-4f86-ad2f-ab2643422c61","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":174,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"52a8be49-779c-43ab-89df-96f7785da7e0","block_type":"box","text":"less than their original cost.","page_number":174,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"cb50801b-6a7f-4365-861f-a852e74cf958","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":174,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"ef95e119-3da9-440e-8a59-89d9c841c873","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":174,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"ce82b821-8444-4933-b304-c07491763dca","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":174,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"e3d17bff-6785-4a69-9d90-9371fb255bdc","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":174,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"814cb933-ec2a-46d2-be88-054c013d971a","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":174,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"01d5222c-24aa-48d7-bfbc-59afdf47d387","block_type":"box","text":"lower amount of expenses is deducted.","page_number":174,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"3b6d2ff6-6408-430d-ac0e-6e38695b6293","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":174,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"8522a20e-95cf-49c8-8da9-735c202f726d","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":174,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"6755dffc-3cba-4acf-990f-2d68f1712ef5","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":174,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"3f891eab-a4eb-4169-95c9-588bc12e402c","block_type":"box","text":"Money Magazine, U.S.","page_number":174,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"c7429797-cc3a-4485-a841-be231969b536","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":174,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"d4796c8c-8cf2-4d4c-ba61-29f1d1b1e756","block_type":"box","text":"or other industry publications. When","page_number":174,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"50d7079a-103d-4668-8871-62e284a1e25d","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":174,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"9a38be00-95df-42ec-9ce2-c8aa00df313c","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":174,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"f244f9f4-cb52-43ae-b7e9-aa83c43f32af","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":174,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"41949960-8403-4dcd-a558-41af70c20b3a","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":174,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"5af8ddaa-92c0-4d83-addf-878aaaa96e1f","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":174,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"850d3587-c628-444e-934a-5b30526ad65b","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":174,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"dc97588e-75a0-40e9-9053-ae6e21ae9cbf","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":174,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"6ae5d53e-7590-491a-acfd-c373b022b991","block_type":"box","text":"developed by Fund management.","page_number":174,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"f678c13e-c559-462b-9f39-d1336eb152f3","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":174,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"01f9e59b-7121-4680-92f0-3f1e9edba176","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":174,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"dea92f0a-e1b4-4e94-820a-fc3bd20f81dd","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":174,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"a28f12ef-3305-43de-8c02-487905863c33","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":174,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"36da5c06-a162-4897-b751-958894408be7","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":174,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"f88bb332-41b6-437e-835e-4caead9b2c5c","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":174,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"96f65a2e-983b-4fdc-b3fa-e5cf70aa2e86","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":174,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"ee998c26-5c16-4b5a-8611-3110d090a42d","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":174,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"eaf6e85d-14c5-4a0a-82b0-8406e600eb60","block_type":"box","text":"II-138","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b63f0f63-a1cc-4808-b798-e5828e516517","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"695ed881-c14e-48a9-b76e-3dd853f2319a","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":175,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"50982011-9af8-45eb-b9c6-b4d81b4b24db","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":175,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"30a03e32-1819-4144-8c6e-b72f712e5cb9","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":175,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"5f05f75e-3c0c-489a-9a02-1512ce91daa1","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":175,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"3ea6b806-f7b5-42ce-9aee-4b4e9d53cc7e","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":175,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"4059e0e9-5832-475a-94e7-610d7a8f3467","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":175,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"e936649b-a852-45d9-abbf-91d305a6cc31","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":175,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"2745d0f2-518b-492d-8938-ee7ad4ef8c5b","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":175,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"3463e283-0da9-46b6-a847-b9fa41b962ff","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":175,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"befa6c6c-c08d-4385-a38e-ff026046c496","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":175,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"5f400954-1e5c-428e-848d-3966a5d74b55","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":175,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"fabcfb79-d722-434e-b435-867e5499ec5d","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":175,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"26e7a3a8-868c-4aea-a88e-e6dc5cd02d95","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":175,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"cd3e8d22-4b49-463c-be70-55b220424c44","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":175,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"c1980ad6-b92e-47a9-a2d7-9a23963f95fc","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":175,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"b4d281cc-9b51-4181-8227-b87dbdc1e336","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":175,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"2b157f2c-4749-4d75-bf76-bffc53529894","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":175,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"39c16ec5-0228-48d9-a97d-7fa8f6d2c6ee","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":175,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"b89f1a6e-c335-4d8f-965e-2e6cd7023734","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":175,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"570c81c3-82bc-4017-b566-145e3c84beda","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":175,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"bf6c8f78-d148-4e24-8bc9-2b3acfd1a7dd","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":175,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"99f066e8-ed6d-4e60-b9fd-6d5e98361e40","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":175,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"ec02c923-7a18-4361-aa35-d29adeb1d86a","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":175,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"17446863-8805-433d-b254-2725550b9f67","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":175,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"33e07259-c128-456a-a320-e3a7f39573a7","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":175,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"de5d7546-91c4-4db6-afb8-41f8fd86a03a","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":175,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"306eedcc-deb8-4bf2-8ab2-5b5f08f25e88","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":175,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"a07d0fc5-8989-4cf0-96c2-fa6c6083f5b6","block_type":"box","text":"GENERAL INFORMATION","page_number":175,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"18788735-96ef-4391-9268-48e3f2d61130","block_type":"box","text":"Description of Shares","page_number":175,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"e9afc68c-c1ee-4eed-b362-93cf70979e85","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":175,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"d71afaf3-5007-41d2-bc19-027a8b200765","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":175,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"f16a864f-953f-4500-adfc-05a81816d6ac","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":175,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"eaa83a44-f23d-43a0-9951-74be8a5396bb","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":175,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"bbdde9e7-c852-4e5a-b14c-9c152072ea1d","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":175,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"f80a06f0-dfb5-4e8f-b810-6c7a02491dba","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":175,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"863b7f01-8d2c-4e5d-b5e5-fac7624dcec5","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":175,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"b2575540-ab9c-4b44-8069-892692da01eb","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":175,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"cc4f6899-e663-472f-ac43-f570c5e662b4","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":175,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"4ea4840c-08a8-4c33-95d2-924c0e5f77c3","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":175,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"cc950594-e714-4192-8fde-b14627b3c72d","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":175,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"f8d7fb04-f820-4992-9fa4-ab857a902325","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":175,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"145e021c-c4ea-4e76-b08d-b8985b0746f8","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":175,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"30f47d97-682d-4731-951f-9dfc3169c0ba","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":175,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"cd0047ec-4f1b-4ab3-b371-4cf3af9ec826","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":175,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"8dc0df35-f206-4e4d-a020-446649645050","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":175,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"ad5d55cc-8ca0-4c50-8667-ea506bb2ca7c","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":175,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"d238883a-c3b6-4df7-8878-4617e287b741","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":175,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"03b482db-a6fa-41ae-81dd-1deaa3efca8e","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":175,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"8a813dae-6f6d-412c-ab53-ab6dc0006e88","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":175,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"e8e8fe13-cd61-4329-bb84-e430d9676438","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":175,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"e9ea3255-9cf2-4606-95f5-53d67ef762d7","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":175,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"d75ef7ef-8922-4ad1-b146-143cccd9f121","block_type":"box","text":"II-139","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1aae8ee8-58e5-4101-b08b-dd7f83d3140f","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e078bd1a-2327-4c9e-8bcb-ba59dc6483da","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":176,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"f1e6ee48-089c-4f4d-ac3c-d2f246c62388","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":176,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"cb646f13-5bdd-4677-abe5-2e598d0d3beb","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":176,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"29d07608-6788-4d4a-90dc-3980a5fb162f","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":176,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"75919325-2dd4-4d2d-b62a-fa8b43855c9d","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":176,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"73b57c93-8b2b-45b9-a257-4d5a266256f3","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":176,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"6f783d39-fdbe-4b1a-ba34-d95f376fd2ba","block_type":"box","text":"Additional Information","page_number":176,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"3825635a-3573-4054-b333-4546aeb7a67e","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":176,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"5d299a54-41c3-45b4-b74e-0efbf7637f2c","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":176,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"d14f8c41-6efe-4b63-99c3-ea534eb3400b","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":176,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"20b549c0-daad-4ad5-aa86-9e29dc1b27da","block_type":"box","text":"such name to any other company.","page_number":176,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"c7a0a73e-f20f-43fe-b1bb-f6f36d94a71a","block_type":"box","text":"II-140","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9f3db519-1ae9-4abb-b687-6a5fbb0eccb6","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dea2c7e1-bad3-4107-903b-5369cace8113","block_type":"box","text":"APPENDIX A","page_number":177,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"0f0c0a7b-1f23-4aa3-bce0-a2aead257e2b","block_type":"box","text":"Description of Bond Ratings","page_number":177,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"64c3bbc6-3730-44c6-a342-8ca838a61843","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":177,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"2b9e5c19-2511-4750-8b89-46f4fa424418","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":177,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"ee90de27-47bd-4d42-8899-e89b53f86642","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":177,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"6407b7d9-67b8-436f-8ba4-e6e571e6d2fe","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":177,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"aee164fe-7d8f-42fb-8b6f-60b6177a2b0a","block_type":"box","text":"securities on a particular subsequent date.","page_number":177,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"dad319b6-6813-469f-a919-26b70d519b25","block_type":"box","text":"NRSROs may rate specific investments (","page_number":177,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"807f3dd0-d752-4419-9b88-45e4e5f7003f","block_type":"box","text":"e.g.","page_number":177,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"1e0fd04b-15b0-4040-9562-c3a049a15d28","block_type":"box","text":", bonds), issuers (","page_number":177,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"b3a5add9-3f60-4dd5-a053-47c05a53c5fa","block_type":"box","text":"e.g.","page_number":177,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"bd1ebffe-e925-4cdb-b171-c3a3ab6d6e16","block_type":"box","text":", corporations, governments and financial","page_number":177,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"e22f4940-5a6f-4acd-9195-3ee5c765ac86","block_type":"box","text":"institutions) and/or programs (","page_number":177,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"74867d18-6665-463a-8bd2-c20e3d14b19f","block_type":"box","text":"e.g.","page_number":177,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"9ef54978-fd98-47b8-ba41-702308771b4a","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":177,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"f99185cb-eb7f-4c19-bc50-a62e52d7d445","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":177,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"9a01c36b-3ae9-4e92-bdd2-25c0e229b945","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":177,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"a2235e45-609a-4eeb-8d4b-65c169b7c7b9","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":177,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"a0bbff12-32fa-407b-ba59-044dbe3428c6","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":177,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"96944eb5-317b-4674-b1e1-e41640b95f4a","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":177,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"401a0948-5a59-4969-97c2-6844e744c804","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":177,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"8c714f2b-0797-4700-b4f6-84613718af67","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":177,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"fa71acdc-c32a-4a1e-82fc-5173ebf8d4a0","block_type":"box","text":"security (","page_number":177,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"26f69750-aaca-4054-82ab-4c921a562478","block_type":"box","text":"e.g.","page_number":177,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"cbd7fc3e-c137-49dd-850e-4a4a80017105","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":177,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"20084c5e-f575-4700-93f3-1c58c6761362","block_type":"box","text":"highest of the multiple ratings.","page_number":177,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"3e68599f-b9fd-4c8b-b557-2dbc77a4058a","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":177,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"7cb82b74-aa08-442e-8245-0ba3a481b081","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":177,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"75b26e07-90ad-4f48-8c08-9ab87fee7533","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":177,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"0abce5fb-93ba-40fd-bc7b-dc03264fd877","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":177,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"df2655fc-b6da-487e-b921-0b5d0a26c290","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":177,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"135f3b13-71c9-4b57-b031-54a845eb2132","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":177,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"d89a71a9-dc7c-4e55-bb36-707c5fa5dd63","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":177,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"dbf1b2e9-8e23-4285-834a-3326b14071c9","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":177,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"4f348a9a-4ccf-4ae2-a08d-d81dbea4358f","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":177,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"45c3ec10-08f2-4f74-9fcd-dc1e2690ab71","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":177,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"32c24918-0659-48d6-a2b5-3e67333c0868","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":177,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"7be9375b-4550-4a37-82e5-6a98447f87ee","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":177,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"5c9ef5a9-6f28-4d3e-842a-410bb0e4900b","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":177,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"d6c62b28-8758-43a6-bb0e-442396f4bc79","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":177,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"89eeb829-6c6f-487d-a07c-2d0c7490cf43","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":177,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"d8a1d53f-1242-476f-b957-94e48168e154","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":177,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"5eff3e0b-5931-41cd-9a15-05fece41ae9e","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":177,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"617be81b-4541-405e-a1cb-f550e1120502","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":177,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"ee752976-ffd7-4c00-ba88-78a56bca7341","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":177,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"aacdb2d3-cf3d-42c2-80f0-e8fa70e93058","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":177,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"3041f372-e7c3-458c-a8f5-4b8bd419da8f","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":177,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"5396d1cb-c638-4e4f-aa84-603b0de2db30","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":177,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"ea664121-de60-431a-8d31-11b7eed69add","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":177,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"85b61720-8444-4579-a328-e1b1a154a45e","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":177,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"259510ff-49a5-4b67-b06c-543ca7d1222a","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":177,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"2f883f67-3f60-4bde-ada7-93ea8ea305db","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":177,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"7475f601-9ee4-4f1e-9dec-e7904d1bbe6b","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":177,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"c6b3d018-9953-419c-9147-446a514c4235","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":177,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"34fedc45-fd8f-44a1-ac0e-73fedcb07ffb","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":177,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"c00d449e-0a4a-4ab8-97f0-e66df1af45d5","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":177,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"8266fab1-a10e-49a3-a348-e5e98fc7bef1","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":177,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"cbb316d2-894a-4bd4-9840-b118fd907750","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":177,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"1f01c1cb-c774-4735-afde-2d868b72b884","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":177,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"18d2749d-fc17-4b5a-9ca1-7bde58c5767c","block_type":"box","text":"upon standard sources of variation (","page_number":177,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"f5818482-b2aa-4048-a2c3-9b0c7b8b6de6","block_type":"box","text":"e.g.","page_number":177,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"34c58853-6fa3-4572-94ff-f53e6ad4c588","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":177,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"00592846-0079-435a-979f-d0133dc95aff","block_type":"box","text":"A-1","page_number":177,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"ef13ea9b-29a4-4ba7-93c5-01aa990e2c3a","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6cd7e2a5-dcee-4087-90bb-6ea73640af10","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":178,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"eb9e0934-cef0-47d2-94c6-181adae781c6","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":178,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"fb793bf8-de01-4fe6-9c87-5b07fdbbd4bd","block_type":"box","text":"e.g.","page_number":178,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"6b584d10-1ca0-41da-afe4-574ebec4bfae","block_type":"box","text":", equity indexed), absent","page_number":178,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"eadeec64-46f8-437e-83a3-3ddc7be328a3","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":178,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"ab2ed162-076f-4ff7-b701-6625cc7a29b2","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":178,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"36b68c98-acd0-46aa-8573-dd4b4e97f3b2","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":178,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"6b49fb8b-e6fb-4583-bced-7a0dea9f49b6","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":178,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"0067c049-be07-4d43-9b35-b9e7aff0c981","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":178,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"ee015079-fd3b-4099-a3a4-4b8e6dbdfe18","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":178,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"4544c6cd-b984-4d2c-87a9-a4a6608c3bb0","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":178,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"98969747-0274-4395-b135-12a93adc8479","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":178,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"73ca8015-ffa7-4ff9-8d65-1a1a98401edf","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":178,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"097bb437-72ce-4011-872c-3ef3b916b854","block_type":"box","text":"i.e.","page_number":178,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"51d38cfa-5aed-4b3b-beda-ab81dba489b8","block_type":"box","text":", ratings on nonfinancial","page_number":178,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"c46161ba-1bf7-4bf0-b718-ad69f075b968","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":178,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"58148941-cad9-457a-9358-a96b0c1bf77c","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":178,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"47cc0fab-31fd-4b4e-b0ae-32ea715d0b9e","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":178,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"cd192aab-d41c-424e-a894-7e3d5c3ab042","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":178,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"8e28879a-d674-439b-8045-aab55920aca6","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":178,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"1ad445f5-df06-42b9-876d-97eede83f52c","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":178,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"21a9566d-76aa-4791-9afd-4ac9420bcd2e","block_type":"box","text":"of time.","page_number":178,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"3433b2f1-3a54-4e65-8884-19a4c2b1b751","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":178,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"cc4d0193-2d19-41dc-8cd7-6cd2e36ee81d","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":178,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"73584828-f151-489a-a1ef-97a133dd1619","block_type":"box","text":"risk.","page_number":178,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"385e6140-e241-46a4-97dd-511390c4bda0","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":178,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"55f73d5c-7812-431a-8525-d491dd613800","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":178,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"6471fcab-daed-41ab-9084-6e9d53b5270e","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":178,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"35a29e60-7f9c-4be1-9af8-f3d51d4d7192","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":178,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"61702345-cec3-403d-b556-e973cde378c1","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":178,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"39726aff-1163-4954-9f79-7ec5c6617729","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":178,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"7945b250-265f-4ec4-a2a3-215a3582e89c","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":178,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"b78a02d5-6ebc-42d2-9560-f48656d6cee8","block_type":"box","text":"credit risk.","page_number":178,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"ca4cb5de-f567-4f40-8533-8fd29e7cdea9","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":178,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"ba99ea9d-65e3-4b1a-8c0f-470a20833570","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":178,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"34cff37b-307f-43c8-aea9-bf86bb1d457d","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":178,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"5bfae9e8-c1a2-4907-822f-b5c6bbfbfac0","block_type":"box","text":"of principal or interest.","page_number":178,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"25d56ad7-9ad2-46d5-8621-1669cd87b07d","block_type":"box","text":"Note:","page_number":178,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"08e7d563-d712-4ff1-9ca0-2cec4c6b12a1","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":178,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"9bc4ab06-0e3a-481d-b224-6a4ac8dee9b1","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":178,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"85ef581a-062c-4c0c-84d0-a326c57471d1","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":178,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"6e52d978-c322-49e5-a89e-4c03d456e7fb","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":178,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"4a24bbd3-c97d-4635-bdc4-4eaabb6127bb","block_type":"box","text":"companies, and securities firms.","page_number":178,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"6c2aaa28-1591-49f8-925f-170a66696621","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":178,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"db443b72-7e52-4f2c-8608-e9aa00f0273b","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":178,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"8f9abcc7-f53f-46ee-bf8e-45331179c33f","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":178,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"9e164bda-86f2-4e9b-9e52-863d8b5410d3","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":178,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"d9d7cba4-8610-435f-9848-fd8ecbb5c06c","block_type":"box","text":"that security.","page_number":178,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"9660b560-2661-4d81-8dea-0c7377db1234","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":178,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"03ee5754-9df9-4677-b826-81eea9b297f1","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":178,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"23257501-d349-47d3-93b2-c9c5f6ec5825","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":178,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"d5d831ad-8f37-40df-b71e-ba7a0ce00858","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":178,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"a5f2a96e-356d-43a6-800c-21e17b862d98","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":178,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"51af9a86-4894-4eb4-b3c0-2ace6181ff4e","block_type":"box","text":"categories.","page_number":178,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"6a726295-a8ab-435e-a1fb-d0d8cfaa4430","block_type":"box","text":"A-2","page_number":178,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"6b64c3f4-26df-4556-aeb4-09159ed6a2a5","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f02cf0e-2f54-4b8a-92fb-0abd6ecfa391","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":179,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"cf42db24-7be3-4189-8001-419b482e209e","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":179,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"d8f1bea4-d734-4887-b8e3-b19e8d53542c","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":179,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"6caaa024-b16a-41e7-887b-4356f6d16eac","block_type":"box","text":"an issuer’s self-liquidity.","page_number":179,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"6a832c0b-f916-4eaa-ab67-d6be7edf0e0a","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":179,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"cd5a1ec5-a188-470b-95ce-2e3e7a770275","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":179,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"96466b14-251a-4d8c-b0d2-c1d85dbc91fe","block_type":"box","text":"MIG Ratings","page_number":179,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"26ce8a74-3f58-44b7-9bde-c5900589e446","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":179,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"54c212bd-c00b-4e7e-8c19-1d16f5b31b64","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":179,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"16873aac-f50e-4966-9d0d-013b6885c61b","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":179,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"e62cc173-26e0-4b1e-a374-e337bd3c9a14","block_type":"box","text":"MIG Scale","page_number":179,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"40f06c94-d2d7-446c-b808-ff0abc6316ca","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":179,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"021ff6c9-89b1-41d0-96fd-856b6979090b","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":179,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"feaea2fd-d6c7-4ccd-94d8-864cc29511b9","block_type":"box","text":"refinancing.","page_number":179,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"d190fd4b-475b-44d3-a70a-9c63841577c9","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":179,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"9988fa25-bbe4-4a12-868b-c5ed835d2cea","block_type":"box","text":"large as in the preceding group.","page_number":179,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"1078ec8e-2dbd-465a-85c3-073e042144a1","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":179,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"12fcfec3-6003-4032-8a59-f8f722937a2f","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":179,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"ec56ca40-93a5-4ec3-9d6b-03fe8a06fd23","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":179,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"05b7047d-a00e-4992-9c6c-b7c7b796f8bf","block_type":"box","text":"lack sufficient margins of protection.","page_number":179,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"6df04070-ebce-4645-bacb-a2de15101056","block_type":"box","text":"VMIG Ratings","page_number":179,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"d35017e5-2dbc-40be-b3c0-ced2470c334a","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":179,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"c34cbde7-6ea4-42d5-8c81-b02c2ffd19e7","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":179,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"88e9b22e-aacf-467e-a67a-e4d5a4961cca","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":179,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"8d9fcde8-070c-4881-bc04-46f3d4decaa6","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":179,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"fe24948c-40cf-43be-adea-035cf98e5bd1","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":179,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"29a3bd12-7df3-4305-9860-3e86b91a1717","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":179,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"8e77ae76-7f1a-407d-b160-1c9061957b10","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":179,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"766924a8-2517-4a02-8652-83fd485d392a","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":179,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"f9454695-ed79-43da-ae66-d359b30c4057","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":179,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"731e0b11-d09e-47b9-a52c-bc04c9cb6f98","block_type":"box","text":"grade.","page_number":179,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"8f4ff7d3-4bd0-4173-8fa5-42ddc8b5c01a","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":179,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"623522c8-ba56-48af-a25d-1d2fd7e2aa53","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":179,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"00b46fd5-1fa3-4420-9a15-44e591f58543","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":179,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"a6e66634-07ca-4f66-bce8-a2383b369dbc","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":179,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"42bd0bce-d49e-462a-982d-9705f00e5be8","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":179,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"a977d546-8820-48e6-9697-d42c0936e8b0","block_type":"box","text":"liquidity of the corporate obligor.","page_number":179,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"ebaff2e1-61cc-4e0f-b6bf-d55ee43dd0b1","block_type":"box","text":"VMIG Scale","page_number":179,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"3e069113-19d4-4321-b05d-2adb998573e3","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":179,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"a635a380-d17e-44e8-813a-cf2ba9707528","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":179,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"5547f130-8eea-4db3-8222-bdcd747faa97","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":179,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"96bb19d0-95f9-45c5-93a1-e55f3ab4136b","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":179,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"62d3f3a5-eac3-4668-8e77-939593928f01","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":179,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"55406d89-6fb1-41ba-80d0-f065f9dcaa3a","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":179,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"f8e1ee02-44ba-4f76-969c-1941a8b81a87","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":179,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"aa1ef25c-8586-4711-80e8-a2f732f0899c","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":179,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"b1af0123-e6c1-4d19-a586-d3838774f7b8","block_type":"box","text":"may lack the structural or legal protections.","page_number":179,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"addf593a-7f11-4708-8cc8-9aa2343b473d","block_type":"box","text":"A-3","page_number":179,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"280b1f93-96da-4bd7-9c84-cfba55e469cc","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"347f2b0a-78d8-4f23-b8cf-1b6549f92cf7","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":180,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"8ad185b6-f12f-45d5-875b-52e92340bc03","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":180,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"45b6d1e3-c721-4b15-af06-029d2ad42b7a","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":180,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"69c655d5-158a-4bd9-b393-ffe63f0d94e6","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":180,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"678d8254-5bfb-44c2-93bf-9a429f136bbe","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":180,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"1181c869-ff36-418e-88c0-14c10a840a0d","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":180,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"060b811f-9e8e-4249-b428-a8e41e9bb6ee","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":180,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"179cff17-43c5-41a0-955f-8b09b19af832","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":180,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"5803fdb9-db5c-42e7-b726-6e572bc5e5d6","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":180,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"be79f00a-c261-480c-a920-40ee8d32e113","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":180,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"89b48127-122f-483f-a570-0775df7eb4e1","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":180,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"053eeb1e-26d5-4514-ae5c-a380dd5d2833","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":180,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"b8d55d97-5aff-42e5-9244-697adeb18439","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":180,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"bf751520-82fd-4cca-943f-db987fbfe0e3","block_type":"box","text":"from these guidelines based on market practices.","page_number":180,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"a5510fe6-7627-4327-9ac3-d096237f85da","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":180,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"94223960-6641-4b13-aff3-a1e3ef9b9e6a","block_type":"box","text":"•","page_number":180,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"1052bb1c-c680-49ea-a895-2af9c44061b4","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":180,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"e1fd7a84-9869-4053-a5a2-715e524b3dd7","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":180,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"f28d56cc-d95c-4637-8279-5ac5f748e7f6","block_type":"box","text":"•","page_number":180,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"cfcbc1d9-6bc7-4bdd-9384-b5dcd93efebe","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":180,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"1662a42c-1d7d-4245-adfd-54697c27e81d","block_type":"box","text":"•","page_number":180,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"b1ef9411-1f0d-457c-8163-c94490e50233","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":180,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"b0724937-668d-46c2-bf17-a380e8b2ca59","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":180,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"f97d4d29-1743-45c3-85d0-3c306b560372","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":180,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"db11045c-d5c2-4a1c-aa86-7f7455a6e851","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":180,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"d3bc2318-7280-422b-b836-8f792e81a69f","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":180,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"7bb6374f-caaf-489d-b8ed-a17c2336330d","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":180,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"c14cff31-2e56-45a8-b3d2-89ed1fe3e12c","block_type":"box","text":"obligations.)","page_number":180,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"0f34048c-3046-4fd4-9486-2f73d46d5d87","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":180,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"ee853ec1-d434-478a-9e0f-ad73a872fb10","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":180,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"1a2ca2d2-d1e3-49fc-aa42-8783e5054ca6","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":180,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"72f67310-67e7-41f7-811e-87ecdeb6357a","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":180,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"986fb1e3-c6d7-474b-ac67-18a8c6b0b3dc","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":180,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"80a05b7b-08cd-4870-9228-8304e4d82be4","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":180,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"c13d452a-5b0b-47a5-847a-445eb67c8b30","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":180,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"2976d2a8-5207-46a7-95b2-5ec326173dba","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":180,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"70568426-16b0-4ac5-8633-090fdc5e50ee","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":180,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"7008b820-8715-4486-9fd3-00945204c97c","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":180,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"90603a37-b7ed-4b43-bbf1-27af2c8c0df0","block_type":"box","text":"financial commitments on the obligation.","page_number":180,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"04ecc17a-8b8c-45da-9fea-b845801110fc","block_type":"box","text":"BB,","page_number":180,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"e320a2d4-3f80-4d00-9378-1a6a1517d0f8","block_type":"box","text":"B,","page_number":180,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"3f84e69e-d127-4782-be4c-4704add57e70","block_type":"box","text":"CCC,","page_number":180,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"3b728231-799d-4285-b825-599f624a296d","block_type":"box","text":"CC,","page_number":180,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"4d44cca6-d299-4773-a20a-b38a01000201","block_type":"box","text":"and C","page_number":180,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"1138d3b4-22cb-4d4d-9747-4c583d117e5e","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":180,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"bc03b404-284c-4974-bf96-4873a09b8d28","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":180,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"64b57ec8-c809-482e-bda6-641773b17086","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":180,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"13bea48f-8145-456e-8030-6cc795f31d55","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":180,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"58d140f3-a7d7-4f60-b5e5-8705d3cb8747","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":180,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"06bcc0ec-5669-442b-a0ea-f4e7371cd4e5","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":180,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"786a04de-4feb-405d-bff5-ef3177f744ed","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":180,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"2f121496-bd2f-474c-b0e4-874b561ad799","block_type":"box","text":"on the obligation.","page_number":180,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"838737a6-c3e2-455b-a9ee-7fd563fc4d67","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":180,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"9f9244f3-f8a4-4b41-860f-1df0fd1fa43a","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":180,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"6b895923-1bc3-4396-a7ba-34282e69fef7","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":180,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"3ea942fb-af26-4b0c-8a78-57ce5a6b3033","block_type":"box","text":"financial commitments on the obligation.","page_number":180,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"cc9ac110-6102-4145-bc5f-5adf9b3671e1","block_type":"box","text":"A-4","page_number":180,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"acd87542-a8f3-45e1-9e5b-56dd7ebaae6d","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f88b30f6-e43c-4418-8351-94709466ed8f","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":181,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"55e77ff8-3c81-42c1-960a-e50e1cece239","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":181,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"28465d31-26da-4ee2-8a28-4acdecddff91","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":181,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"42d918a2-64e7-4287-9c77-a22ea29d64ce","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":181,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"4827b9f4-2c6e-4fc0-bc58-cf5639221e4f","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":181,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"c839f150-eff8-4697-b701-d18b8402b91c","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":181,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"d0bdd0c3-2816-4ed2-b1f5-a51baf184634","block_type":"box","text":"anticipated time to default.","page_number":181,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"5d27ddc7-1193-4efe-be3a-bd778bd66631","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":181,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"27f36ef1-87d9-4d57-a1e0-39a1d1f21303","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":181,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"1b7f6c8e-b131-471b-ab09-3af45ad723e3","block_type":"box","text":"higher.","page_number":181,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"bc974377-9245-40cb-afc4-a46a2ad82dd9","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":181,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"25d83378-60c9-4876-b45d-6837827e29f0","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":181,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"f5bff8d5-742b-40dc-bc53-0f14dba70edf","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":181,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"8a64fef9-3f55-42db-bca2-762b24ebd06e","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":181,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"01b0c038-ace1-4d08-bb7d-f39585d3c6a5","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":181,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"ff3d6b4a-4f2c-4974-a1c8-0ca6ae228e0d","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":181,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"9cc0ebd0-74e2-44d7-858d-a10c04f87fbe","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":181,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"370bdd5b-9d7a-4720-a0a4-c4445f4a61e0","block_type":"box","text":"restructuring.","page_number":181,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"dc2b0338-9e03-4d02-8d69-c0f203abf025","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":181,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"30b4bd96-78b1-4d6c-adf1-a321e4001ca0","block_type":"box","text":"standing within the rating categories.","page_number":181,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"8d69571c-80be-4b37-b635-8bb39a908a5d","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":181,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"f87c2ffb-af8f-48ee-ab57-36a5b774c9c4","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":181,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"d25fe40a-1852-449c-8788-25bd1c84cff6","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":181,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"09c758b4-a3ec-46c9-a009-ef45c11ca3b0","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":181,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"703849b4-db14-40e2-af06-f529e3009d38","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":181,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"97e2912d-a2da-432e-88e1-4ca774fdd00b","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":181,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"936d5230-e09b-492e-a178-16a42b7dcc62","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":181,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"c522d5f8-53d0-4932-bc88-a2ae77bd0777","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":181,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"53d41b6b-c748-4f67-ab4d-b22f79092ecb","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":181,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"2010730e-1107-4f0c-b743-72a31934527f","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":181,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"e4dc3720-fd30-426f-b78b-0801f72184f3","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":181,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"40abc6f5-9375-4689-8487-1b101ce4c69c","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":181,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"7d848fe0-c274-47e1-9bd2-54a31f3c0168","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":181,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"b18b97cf-3758-4c4c-98f5-a99265612153","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":181,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"50ac63f5-4764-4028-9a0b-28a797b3679d","block_type":"box","text":"financial commitments.","page_number":181,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"1a6fc7c6-f90e-49c8-9c8d-ee67a17d940f","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":181,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"f55da3f8-c94c-4cde-a4e2-ec762c9a7210","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":181,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"d01cb3e9-c858-4d5a-9f3c-6eb850faff4b","block_type":"box","text":"commitments on the obligation.","page_number":181,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"38d0a1f5-9407-4c90-9b3b-42b486efd042","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":181,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"594a668e-f791-48ff-8115-85319635323e","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":181,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"505452ee-7cc7-415c-b199-dfe33d6fc2df","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":181,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"8a1ee421-c4da-4457-8e97-dc238fe1852e","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":181,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"b7a889e2-f055-465e-966f-f516db17d114","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":181,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"1afb4b6f-2e4f-4c50-8f4e-a8be53c664fa","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":181,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"1379ff8f-372a-41b7-8356-52693a0396de","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":181,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"bbc41e58-f5e5-460d-b52d-80874ac5ac04","block_type":"box","text":"debt restructuring.","page_number":181,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"4c087987-fc7e-48b6-af95-b9d179af07d9","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":181,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"6b5b5ff9-206b-4ed8-821b-d880179c79dd","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":181,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"a790bdeb-c61f-4ca1-acd1-5200728536b8","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":181,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"c83394b3-dd71-4d1b-a989-be0ccc8b7bcb","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":181,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"9f7e13f9-5009-4a46-9d53-2894cc8ea4b5","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":181,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"61b965a4-9f42-40d7-b30f-1b9e55c4744e","block_type":"box","text":"A-5","page_number":181,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"9cd0f317-e1b8-4b95-accf-8410c850a966","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6cd1d541-9b27-41c6-b021-7ccb9b8bbd4f","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"ee2f1ad7-be34-4c2c-9d7e-e1850b5de56c","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":182,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"5e9f489d-5246-4f61-88da-3952c0a6e7ac","block_type":"box","text":"as a note; and","page_number":182,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"ac6c195a-f11d-4c06-8734-270129671375","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"d81b7857-f4ed-4463-8054-b04b22f4d0c4","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":182,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"811224f7-310f-4873-a1fe-7dd0cbb5e5c7","block_type":"box","text":"treated as a note.","page_number":182,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"f00864a4-ce86-4ab8-ad45-bc12931f4499","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":182,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"c6b9efd4-5117-4a0c-937d-5e13f031f952","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":182,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"0d4acb21-f8ab-4c39-a2be-ea5c11cbe279","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":182,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"769ccd67-af0b-4c76-9b4f-97042b666828","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":182,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"ee633018-881a-4b8b-98c7-ce9977a2c9a9","block_type":"box","text":"economic changes over the term of the notes.","page_number":182,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"d2e05511-d061-4741-a7d6-822f99205cbe","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":182,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"5f077f1e-ca55-4946-a1b4-05ab5f4b43b4","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":182,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"92007a4c-270c-4791-af22-4832ef8c57e5","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":182,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"003e633a-5657-4fc4-ab59-5cfad6c08711","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":182,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"914897d2-4721-4340-a13a-82fb50152945","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":182,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"9139592b-7fe1-468c-b703-f232a847d7f3","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":182,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"c229c122-d289-4c3b-9622-c8f33bf1f3a4","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":182,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"341fff51-0d4d-4898-b3d4-f2f0970c4fa0","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":182,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"e5bd0b66-e079-48e0-8650-7625a78b9b94","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":182,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"6ad73531-43da-49d4-af60-d4209141a964","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":182,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"b6a7480e-767d-44b7-ad6a-cf2066794fe6","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":182,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"a8283e08-4dc7-4cea-979a-61c937a2acca","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":182,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"54b50687-ad64-4e75-8103-be4d8cb2dd14","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":182,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"6aebff99-749f-4f67-8f18-4d60120c2b6e","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":182,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"5708fb67-0bb7-4f29-917c-72ce5e289ed6","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":182,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"36379b57-fc09-4074-a27a-cff0d8a28b12","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":182,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"983d8714-5c08-4d41-b459-494ea83ff951","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":182,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"2873e655-99ab-496b-b2a6-3884e4400354","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":182,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"b879489b-c3b7-4229-995e-2f2c5159ca32","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":182,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"9a0638fc-d0b5-4a8f-a1c4-d3a35446e453","block_type":"box","text":"receivables or other financial assets.","page_number":182,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"58bb260b-755b-4df8-bdb7-a7fb16dce5f1","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":182,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"faef20e3-6784-4116-924f-a82d33819021","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":182,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"27951f66-6491-4fcc-8e82-98a70eeaf49f","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":182,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"1c2b4b38-4ee1-43e5-aa6f-561baaf8fc52","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":182,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"f372d4f8-42df-4759-92a2-af5a97fb2c03","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":182,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"a1d52095-b35b-40cb-86dc-edc063c9dc9e","block_type":"box","text":"occurred.","page_number":182,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"4d9eafdc-d955-4bc6-b284-35b0923530fc","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":182,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"a660ec0c-44e2-4db8-9caf-3a75cc0de020","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":182,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"89cb28a5-9bd3-41c0-a09c-928b189e5ab1","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":182,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"734a9f5b-ea0b-47b8-a9c3-269f13fadfcb","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":182,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"56016294-bf82-42f2-8746-a335845ac29e","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":182,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"b92b9f6e-e4f9-4772-8b07-f6e795d092df","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":182,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"307af83c-0191-4eb7-8abb-31290d93b290","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":182,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"92c62eda-76b1-49d0-a1ae-a64c66ea4b5a","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":182,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"504bea2d-cba6-43fd-aa2c-cb8aa755d14d","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":182,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"06a93ff9-2bb4-4ff2-845e-80d03230bc25","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":182,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"876b13a6-3d70-4df4-a163-f502c611d2de","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":182,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"8ef6f67f-859f-46d5-a423-3d8a95f0785b","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":182,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"c5cc4e83-57a3-4d4e-9954-ccf6fcb5f0c7","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":182,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"b8b438fa-1210-414c-a3e9-3bbb7b239f9d","block_type":"box","text":"i.e.","page_number":182,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"d358ddee-5977-44b9-adef-0a97db466295","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":182,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"cda64f87-3db5-4499-8568-8f067c6f16b5","block_type":"box","text":"the obligation’s documentation).","page_number":182,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"cfc83576-765d-41e5-be73-525597829d13","block_type":"box","text":"A-6","page_number":182,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"d5c63ed3-584e-4ddc-849a-8301110f39a8","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70290e8e-02fa-4102-94cc-ad77e8eebabb","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":183,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"faf9523e-6303-4535-8f22-ffbac52f7fdc","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":183,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"ca10072b-aec7-4194-b075-a75733dc464e","block_type":"box","text":"agents in the form of a rating letter.","page_number":183,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"de211fa8-67fa-4121-ae83-ad4a82340049","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":183,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"f986dcfd-c008-4b2f-9e95-be47d423b1f8","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":183,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"c7441f11-f1d2-484b-8124-f6203d7e45fd","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":183,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"6a0db149-de03-4c2b-acfe-0955bb535d94","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":183,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"cbc13ea1-ca43-43e6-a632-4606261543de","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":183,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"b688160e-fa31-4134-872f-77779026728a","block_type":"box","text":"e.g.","page_number":183,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"8a133e24-2d52-48e9-9c10-0327e95c4c76","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":183,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"018fef80-dab1-49ba-84c5-602a7359bb9e","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":183,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"f3decf96-263c-4f88-9588-81c8844e798c","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":183,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"5075224b-a1ab-48ba-a205-713e175c8d76","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":183,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"d02dce5e-9a48-4e20-bea3-f5d1f11eaf04","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":183,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"a9019f49-2ae9-4b6d-bc3a-c5ac945273b0","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":183,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"839f3225-0eba-4ac0-8172-1840f68a31f0","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":183,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"cd8c3cf3-96b6-4a26-98d7-4f5cca38642b","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":183,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"b700ace8-7802-4795-b1ff-d68d001662f6","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":183,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"e773b53c-c334-4939-92f0-d91fb037d07f","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":183,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"17eee30f-b43d-4bd5-b947-8e5c23fadec5","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":183,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"7d4b87d7-e24a-4271-ad74-2a6cae9b5b63","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":183,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"febc7b36-488d-443b-a026-ed7f49873741","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":183,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"5edc6918-46ca-4362-bf24-0995e07171f8","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":183,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"f629910e-b311-4238-bda2-7028c749ddbb","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":183,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"800da120-e224-42d8-b8a1-600cff07b745","block_type":"box","text":"Ratings.","page_number":183,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"14c58c61-6db0-42e2-953b-aeb3cba654e4","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":183,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"c9c68a5c-7711-4338-b817-1f5719539313","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":183,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"f29bb13e-4f69-4110-8a44-230b3ba42e9f","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":183,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"96592a2d-2f96-4980-959c-1d6f2f13dd4d","block_type":"box","text":"obligation ratings.","page_number":183,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"17ae12d3-6177-4597-8b12-fa5b6a80dfe9","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":183,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"fc533dda-7e9d-40d5-8279-2c1c89dd8762","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":183,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"161561ff-399e-448d-ac88-df2fe6c8fea0","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":183,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"55f028c6-6ac4-42d6-bc02-8afa544011c6","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":183,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"0ff79f1e-4716-4e4c-972d-b7e16207a597","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":183,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"253576b3-4ecb-4f86-bb0f-f1ae472f5b41","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":183,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"3fb91729-dd1d-46b7-b372-064901195a2f","block_type":"box","text":"to foreseeable events.","page_number":183,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"9213d131-ada5-4151-ade8-67474a5004db","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":183,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"e9729e9a-012f-483a-a15a-351610c2faaf","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":183,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"a0683534-9109-45a7-80c3-fc6298c25ce8","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":183,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"7988d042-f730-49ed-949d-d8e710fca187","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":183,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"98fa0551-08a2-4484-9532-cb3f7414cf72","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":183,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"1479d421-1063-48c7-ab15-3cffb2fffc68","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":183,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"1f19157c-c926-4f4f-94ff-23ff7c9c50c7","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":183,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"1a222b9b-db38-49c8-af3b-f4a44cce4703","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":183,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"d8695ba0-0ba8-405f-aab1-f3a86a99dc5b","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":183,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"b8ac5263-cf91-4111-aa61-e1a4bc51f622","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":183,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"f6a089ba-b3b4-4203-b3dc-960dfaf51030","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":183,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"42f267b9-87b5-4981-961d-936ef45cf6eb","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":183,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"1b670cdd-87d7-4d62-959e-e0115fbec3aa","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":183,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"1626c8f7-0b4b-4a05-b299-85ecf9ad9be7","block_type":"box","text":"possibility.","page_number":183,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"13080158-ced7-46e8-b45a-f6815169311f","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":183,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"4e7e424d-a894-459a-a82a-56914fb0077d","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":183,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"d8c7df03-32d0-4fb5-91de-36786ddff2bd","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":183,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"6e642426-5c3f-49cf-84bc-c8c452cebeef","block_type":"box","text":"A-7","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"7ec6ee12-029f-4d05-bfce-c9ad206fc37c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f7d0bfa0-f206-43ad-8d11-f9ce99576482","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":184,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"55653ffe-6fc7-41ca-851f-ed5c3e640fc7","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":184,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"718000f5-cac3-4b6e-826c-71457a8f3e67","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":184,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"bdf48ca0-1be9-4922-848c-f01de3073d4b","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":184,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"19f47dfe-3a96-4fa3-9c51-2c8faa1bf203","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":184,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"c9e4df22-9f94-49a7-bac7-b272baf1c6d7","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":184,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"34b32dd9-1068-42ff-8d79-988ede6fb7cf","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":184,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"44d27bc0-6051-4850-a7d9-3b58bc3901a7","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":184,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"76bf0b28-e15d-412a-90ff-6da015b3b5b4","block_type":"box","text":"relative status within major rating categories.","page_number":184,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"2aa9bdcb-9f7a-4b2d-a33d-89fb8f742849","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":184,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"a81cf90d-71e2-4f12-b4c2-45f6808569f8","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":184,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"b8e22096-9292-4d70-917d-7d82d1bc91d5","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":184,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"15eff0b7-9ec1-4167-aef4-09fb634f3a7e","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":184,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"e221b253-5ab0-4462-8dc2-07b0727a693f","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":184,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"552621a0-5f10-4d45-8c3a-14ae159f3e49","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":184,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"248bce3e-b157-4d0e-8494-e9e6f10b529b","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":184,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"79a8a744-f86f-4e7d-84af-78f0910547f2","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":184,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"29ecef4b-42b1-45c3-9e04-d222c7b24d93","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":184,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"efc32537-a945-45f4-8787-01b64aecccaa","block_type":"box","text":"finance markets.","page_number":184,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"29b79f75-ff51-456a-915d-d1ccf7bfdffe","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":184,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"070f866a-c916-407c-aaed-b6dd28e499af","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":184,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"90e407b8-1a11-4c53-a280-1bfad877eba7","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":184,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"d8b2f3e0-d511-48ea-a9b6-2237a06f4526","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":184,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"1283c95c-bb67-45ee-b45f-1e380a82c3ea","block_type":"box","text":"commitments.","page_number":184,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"a03d2555-944f-4db0-aa8f-794832b7fa67","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":184,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"b246950f-75a5-4768-8187-6b95586b67f6","block_type":"box","text":"adequate.","page_number":184,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"2d6c9db4-8ae4-4364-ab81-c9c4da2072aa","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":184,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"ef25c852-e7bb-44ff-9860-d7bfb3ddd4cd","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":184,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"68e06402-4cf5-43fb-a3dc-2e0a5be9da51","block_type":"box","text":"economic conditions.","page_number":184,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"803a75b3-a2ea-4f0b-bcd2-f34bf553821a","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":184,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"617e35a7-857a-4405-a118-eb6bf8a7571d","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":184,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"005f37b7-6e4c-48e0-9648-712453f6cccf","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":184,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"51173a0f-4314-41c6-b871-bc3c69754def","block_type":"box","text":"ratings only.","page_number":184,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"356dd1fd-deff-47ec-b2b5-4fb7b07c95c8","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":184,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"100b521a-c7ef-46ea-85ec-5937bf7850ef","block_type":"box","text":"obligation.","page_number":184,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"9dec5059-6059-41ce-99ef-841d479b9d29","block_type":"box","text":"A-8","page_number":184,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"5efee849-b748-4ebb-a1fa-68c9dce4c3fd","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f78e775d-8d22-4604-ae1c-ca1f6bc33094","block_type":"box","text":"APPENDIX B","page_number":185,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"52b8b014-aa04-499b-98b2-f05214f7d07e","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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companies alongside and on behalf of those teams when appropriate.","page_number":189,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"917c6b49-d5c6-4714-9032-8b9673b4ad01","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":189,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"91d439f0-a07a-4e4c-acc8-5a87f9144315","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":189,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"5dc62580-b688-4d47-920c-f652890140c0","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":189,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"af6adb27-220e-4f24-b2e7-c9f181006435","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":189,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"aba796a5-f1ca-4610-bfd6-d24afb4baa51","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":189,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"ca5286bb-c07c-42aa-8d8f-ee39cd1b3031","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":189,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"3743a5a8-1e92-48da-8f79-94227a23d869","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":189,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"46aa20ce-baf2-47a3-a9ca-2f0f3e99bab8","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":189,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"3326e52b-bdc2-4a13-bb68-d87d4014509d","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":189,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"172da84f-b4b6-4dd3-8cad-0dec6e378365","block_type":"box","text":"1","page_number":189,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"60d2c511-c59a-4688-b340-4f99d12e8f84","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":189,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"6c8cceaa-e45b-4222-bd32-ab3bcadea8c8","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":189,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"260c01e7-0273-410c-b867-a623d0a86b97","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":189,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"32dbbdff-9324-47b3-8a25-e4da2bf5fd23","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":189,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"5c1e8ace-2cf9-4bcd-a35c-f29c6f271a23","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":189,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"3c50568d-899e-45e8-a9cd-dd4e7d67716e","block_type":"box","text":"2","page_number":189,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"6fc194f1-4c93-4f63-8be8-8ee1b327d774","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":189,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"a8e543ba-f5fe-4db9-9e79-9468fed96079","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":189,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"e9e35b4f-c467-475a-98c0-4e4e1d841f10","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":189,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"42203cbc-db68-4af2-8837-a37bba35c6df","block_type":"box","text":"policies.","page_number":189,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"12bcf0f9-ce6b-49a5-bde3-5679f5043dcf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9a5b9713-948d-4488-87fa-60713b733f6b","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"e0ab891f-04e0-4051-b2a3-f4f6be9181a2","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba7dfd4c-5a02-4dac-8685-b01738250d29","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":190,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"3b8234e2-439b-4103-8e48-d47d5a9ac9dd","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":190,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"960a633a-b216-4f5d-bd4c-c9997e51c2b2","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":190,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"650eb7f8-a09a-430a-8ec1-c7af426edab8","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":190,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"301b890e-7ac0-4c97-8023-f3a8972557a4","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":190,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"92df9319-d9b7-42c3-b26b-5d588c147194","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":190,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"b7945529-2005-44c4-bd13-86d1463c22a7","block_type":"box","text":"this work with research, data and analytics.","page_number":190,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"e61d7d57-403f-49a9-93a5-649258df6544","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":190,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"e689d73c-7d1f-41ae-9c50-832ef0b169a4","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":190,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"b24ef58e-1340-43fa-9626-7ef1d4d7f46e","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":190,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"d64575d9-2a93-4293-a512-50c3ceb81dda","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":190,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"a71c970f-9b0b-4340-816d-5e4c816aac69","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":190,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"c044f946-94f4-4f93-8dcc-d8c5b382c216","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":190,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"d6a755a5-bb92-4d31-9eba-d13c2365bb08","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":190,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"307aa61b-4d03-4d2f-be1d-51d4bd2fb445","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":190,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"21296ae3-078d-4d42-a2bf-109f1b37696f","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":190,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"435d9a57-4b18-40f7-a53a-142089a2830a","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":190,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"bae0e1ce-dd8f-4260-90ac-594235e73de1","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":190,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"cfbde585-10b4-40f0-a2d6-d16d7cad9abb","block_type":"box","text":"shareholder meetings.","page_number":190,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"7c60474c-cb38-4266-89e0-91ba635c2178","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":190,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"26cf3b1a-74e4-45bb-9fd6-ddffedf21e93","block_type":"box","text":"investing.","page_number":190,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"5a32fd76-728f-420b-9f30-deb239d38e4f","block_type":"box","text":"3","page_number":190,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"eaafff75-a460-4c69-a3f1-1eb8fdfaf393","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":190,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"b2145a59-703c-469d-bc0c-40221f804740","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":190,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"f2c5bbf2-78f6-406e-9a7a-b68f13c54470","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":190,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"4737e054-ede5-4ce5-983f-4065e5911f63","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":190,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"f6bb3ee9-5084-470d-81d3-cc722c01f6d5","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":190,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"eaf83d31-e420-4645-a6a5-3cc4e4c1fdf4","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":190,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"d5ca66d5-4c93-467b-8fb1-a58e814f14b6","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":190,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"75011d74-caa6-4ee0-89b5-b95d6e5047b5","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":190,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"ec8883cc-4116-4242-bd43-dcce8ed2ff73","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":190,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"94713c46-d828-4be8-b97a-a71af3ccdf74","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":190,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"76ec113f-8867-4cfb-97a9-f3152d2a77d8","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":190,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"a6cf0a2e-1a29-4f64-bfc1-70eec4404e78","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":190,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"e41238c4-e282-45b1-a290-34efaa634b5d","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":190,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"b2f716c1-cf6e-4e79-ac69-dfaa90eebb71","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":190,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"7c3bb842-ffb2-4ce3-a900-732cd5925c22","block_type":"box","text":"management teams and board directors","page_number":190,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"454f1444-8e58-4ae2-9954-090f02d26cdb","block_type":"box","text":"4","page_number":190,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"6a5f0d94-ed64-49de-a1ca-76fb4ec77a23","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":190,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"2a11a04c-3f5b-4ed8-a342-23717ad65a14","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":190,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"1aef984d-c5f8-4693-8a28-079e979ce574","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":190,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"f344ccb6-eff0-4853-a231-b2948a046185","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":190,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"cf25c548-97f0-4ab3-83bd-626f6fb41e37","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":190,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"445d485e-e297-4ce4-90a8-2468d5bb7278","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":190,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"7a965eac-f6fe-4fb4-8206-d94ecd9c4a89","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":190,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"87e06fd2-4fd1-4e47-ab4d-8924508a28c4","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":190,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"3dd5aa1d-1de7-48fa-bcb7-8f50d61d6221","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":190,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"98b59e6f-38a6-4160-bad3-ec2925f30d15","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":190,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"f466e9d0-e5a8-489a-8f3e-059a34de59e0","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":190,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"7e8ad350-9ce8-41aa-bf1b-85b72683e888","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":190,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"c702c21d-a89f-493a-907f-b15617a98712","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":190,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"b801cf23-0dd8-4dcf-b214-15a9383cac33","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":190,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"09490a77-b0bf-4d3e-a69b-32eed572b3f1","block_type":"box","text":"3","page_number":190,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"55a3c3fc-b514-446b-a54a-ad7403c810a1","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":190,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"c0b5a776-2154-4435-86c8-7fa8cd3595ec","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":190,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"f1498df3-9c9a-4757-800e-0d182c6b0418","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":190,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"23f02db2-d0df-417f-a304-5b861da9bde2","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":190,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"e159827e-80f0-40dd-9264-6f6fadc0db10","block_type":"box","text":"4","page_number":190,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"ace19025-5ed3-415a-8920-d78613ae783d","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":190,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"520bf544-bf8e-4a56-9f37-956646deeeef","block_type":"box","text":"boards and their members, where relevant.","page_number":190,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"be4a5d56-8db9-4bed-8220-6c7282aabea9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"97ed52ff-417f-498c-a266-751e26a7a8ea","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ff492b14-9712-4dbf-a1c5-920688cecc15","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4a44ceec-ecd0-40f2-916d-fabf2c1967ba","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":191,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"71950e31-6939-461d-a02f-ffa9b1d0cab6","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":191,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"a991b968-314e-4d26-9996-1a47e9defaaa","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":191,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"cec15b5b-cb98-4016-99c3-8269949426b3","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":191,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"eacbeaf6-089d-4938-b97c-770cfa0eaa2a","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":191,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"47ba7fc6-6a68-4552-b424-04b84af8c48b","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":191,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"6bdf7fa1-62f3-4609-af2f-5c7cdb979da5","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":191,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"44875b1d-1a97-481a-ad50-190ee588d2df","block_type":"box","text":"5","page_number":191,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"124f0d70-8562-4267-8361-bdb5b76c65ff","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":191,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"0f5a97b8-e9af-477d-9ddc-5379e91bfccd","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":191,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"366cb068-9026-4829-b96b-8a719c3c124f","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":191,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"5538f062-b38a-4134-861e-4b73ec3cb60a","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":191,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"65201c0a-ba40-439d-b2bc-e60d386c14bf","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":191,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"9c0e2657-bd22-4d1f-9ce9-02223adc4b8d","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":191,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"6d900012-b5e3-45b9-9a06-5f84fc5d758c","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":191,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"1afea488-575b-4c1b-96b9-1d6df2efe017","block_type":"box","text":"5","page_number":191,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"6e5ec74d-9898-4d69-9808-8273b37c852d","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":191,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"f9533c87-61e6-4f9f-92bf-a4379ff938ac","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":191,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"0760f87d-366c-4cff-a9bb-868c9f5289b0","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":191,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"82dce4a7-cf25-481b-824d-2db987e91d19","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a90fbc83-56b0-437b-b1f4-ac3b8d0fb9fc","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2c8fd43c-34f0-4380-afea-bf1bdceab27d","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"703f494e-e418-4dc8-8c0b-6f6adc26a6fd","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":192,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"f3649b17-4f2c-476a-b84c-1502b22b60f0","block_type":"box","text":"Roles and responsibilities","page_number":192,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"9f021536-3536-4154-9837-a2db12c81bd1","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":192,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"48883ad6-7b27-49f7-b6f9-a6d6a6a4e5cc","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":192,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"c47075f8-4165-40e3-b86c-b1fb2dae366b","block_type":"box","text":"6","page_number":192,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"3b272e0d-6e7a-4e7e-8249-8d0780c91a0a","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":192,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"d0b27f34-35c2-4969-9744-508382f97efc","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":192,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"41e5052a-03e1-4691-a204-699548c21329","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":192,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"86949571-5998-4006-8869-2466256bd8e6","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":192,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"2ae10dc7-300e-49aa-a8ec-c57618b73f54","block_type":"box","text":"performance over time.","page_number":192,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"be520df8-2037-44a3-a108-854d27931c6d","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":192,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"344f1236-a189-4adc-92c0-fe23b7ebfadb","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":192,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"692b633c-ff40-4608-a1ac-29daa1bf73a4","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":192,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"e18263ef-856d-44cb-9ed7-f4ff88d4a31b","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":192,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"61e6575b-0b29-49f9-8ac4-3e34380dbbd7","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":192,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"e59be431-4fee-4f6b-802f-ced0d4fc3f91","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":192,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"df6dc3dd-ffc0-4eee-a032-15526f40a125","block_type":"box","text":"Composition and effectiveness","page_number":192,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"84373b96-fa93-404f-a150-ecd312ab30ff","block_type":"box","text":"Appointment process","page_number":192,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"ebea4993-27b0-4cde-963c-ebdb71ff5e61","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":192,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"0d4c558a-0150-4f46-a6c8-9e6848383f2f","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":192,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"ce92a786-87ea-441d-a27c-8d6b807fe2d9","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":192,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"f7220076-b154-419a-8b5e-bf3118004cc3","block_type":"box","text":"e.g.","page_number":192,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"c2ef22c9-55ec-44da-97fc-e9eaa705083b","block_type":"box","text":", sector, maturity, geographic","page_number":192,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"33c8bd78-ad8d-4c26-b6c8-2b8d56c4069e","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":192,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"094be980-159b-46be-9155-d20d96098723","block_type":"box","text":"e.g.","page_number":192,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"c078f59c-cfaf-439c-99bb-028bc3f96e54","block_type":"box","text":", financial expertise, industry track record). To","page_number":192,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"59d5ed0d-941a-477f-b236-8ac8f00339d6","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":192,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"67f57ac0-f09a-424b-973a-71f4351c1f93","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":192,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"cb2af5cb-89f3-415f-8169-16734caaf78b","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":192,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"f39c1881-1e64-4b1f-94e8-12f94c467e46","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":192,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"c0392492-3b67-4662-96ec-7b57b70f226b","block_type":"box","text":"and local market requirements.","page_number":192,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"0ebdbecc-6550-402e-a7b0-451276f5ca0a","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":192,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"9e3ea3bb-33a0-4adf-93fc-638cf44da812","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":192,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"b047f2a0-d9fc-482d-b2a6-3f7493c25124","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":192,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"8d7a6c96-4182-4c51-a867-0b1eb9bf4504","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":192,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"106cbfcb-ac3c-4000-b4a6-b9edfde7b97e","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":192,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"7ab62daa-60b3-4ec4-a8c7-a728bad4ed92","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":192,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"07e71f6b-a634-4342-9a0f-99f638f5838b","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":192,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"2cef644d-9a5f-4740-bc09-560d459ed582","block_type":"box","text":"Independence","page_number":192,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"bdf127a7-8e07-48cc-bb51-2a2e35f0cbce","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":192,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"0b3f6e6d-c0d9-45f7-a939-8d3de68f34c5","block_type":"box","text":"e.g.","page_number":192,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"c3b263fb-3e07-4cd5-88a3-cd39a18f98e9","block_type":"box","text":", government or","page_number":192,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"f7defb65-cde6-4053-9e39-1f82e22e8f42","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":192,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"c6ede4e4-a487-4766-88f3-1425a73975b0","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":192,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"a5c04fbc-74ed-48a8-8758-55d28a3f75f6","block_type":"box","text":"conflicts of interest or undue influence.","page_number":192,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"647739d5-bdde-4657-a432-1ee5a7a9fea8","block_type":"box","text":"7","page_number":192,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"094ecfc3-f8a9-4766-be2d-8c0903d6384c","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":192,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"8cccd41a-dad7-4d05-8d32-6efb5fef2a9f","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":192,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"9fc0b746-0b1d-4ffc-b111-6f2852b237e7","block_type":"box","text":"independence should meet those local requirements.","page_number":192,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"31b5a1bb-00e3-4c1b-a3f1-fd2da0bc29aa","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":192,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"e1d6b871-8430-4c54-9909-7b2154016d30","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":192,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"27f30c8e-8d8a-4ed5-892a-cd8c7629d3c1","block_type":"box","text":"composition if this is a perennial issue.","page_number":192,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"f4bea020-aacd-43df-9145-415613f6d88d","block_type":"box","text":"6","page_number":192,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"45f5b8cd-3ea1-48b7-80dd-594105abddc9","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":192,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"5d837525-958c-4192-964a-cbb81e4cee26","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":192,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"bab12633-c5f8-4084-b0bf-193b4df33ec9","block_type":"box","text":"7","page_number":192,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"7cfcf070-0b44-424e-9743-d61583e98e7b","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":192,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"ed50d7c7-e791-4e85-af4c-d7fa7d56a07c","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":192,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"7435dcb9-c675-4be4-94cf-5e46c79e47ca","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":192,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"ce5ceb82-70f1-42a4-baf4-e136f4aa617f","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":192,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"59c017a3-9442-441f-aea0-52d554627a60","block_type":"box","text":"of the company and shareholders.","page_number":192,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"caeabb3a-4112-48ed-843d-3d225c2190c6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1e74da10-6fd9-4782-a2e5-51e022f72259","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9cdabacf-4348-4981-905d-ca4d9f277703","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41b49d14-38f7-4940-a9d3-83f5f0076244","block_type":"box","text":"Independent board leadership","page_number":193,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"367fa0ad-36d0-4f4b-abeb-06cc96a115cc","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":193,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"cd9805cb-fc37-4591-9715-93ea6229d7b1","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":193,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"03237d1d-2514-4d2a-8def-8f2c635eb243","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":193,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"c0b7b6dc-553c-4f96-bc53-5a741ef4ae35","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":193,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"14ea7938-7edd-4ce4-b042-344dc8199c64","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":193,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"e14b45ba-eaec-4c88-be2a-65ebbcf4984a","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":193,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"5ff43f2a-743f-40de-ae46-56ef9b2deb0b","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":193,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"c4759cbc-e8e6-46f3-b5a3-80baacaccbf4","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":193,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"354ae15e-454b-436d-b378-9aa53512b639","block_type":"box","text":"how it serves the interests of shareholders.","page_number":193,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"0badd76b-dca3-4752-b737-388b326869f0","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":193,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"c09f301b-af5a-4caa-968f-d7bb77a6572b","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":193,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"e4899458-5623-4899-8538-e2d99fa90d3f","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":193,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"782e1e0f-12c3-4aa3-917f-29b88392dfee","block_type":"box","text":"Tenure and succession","page_number":193,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"ad918348-2fc4-422b-a683-2f5e1632b242","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":193,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"3662656e-1f0a-4a14-99ac-0b5d4c1c46ec","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":193,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"dd63178d-cc72-4758-8bfc-7984580041de","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":193,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"fa6aa5dd-f719-4773-a388-a84dd66b84f5","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":193,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"5b8473aa-d079-445c-b3af-db9694b51b99","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":193,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"df3a4177-23cf-49d4-9d20-a814830d371f","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":193,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"f6d39e54-05b3-4e8b-9488-2472c374f4a0","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":193,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"ff8297f5-0bbf-4067-8fac-f1cd9ea2a2de","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":193,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"0d8859a5-3d13-4070-a5e0-7a8bc98588ce","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":193,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"d06d1b8a-e486-4bfe-83a5-e4516c2ef52c","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":193,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"2536039f-50c8-4b3b-bac6-b1029cbe2130","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":193,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"a19db87e-6ce5-4291-83b1-a1412a6db249","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":193,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"4825e5ab-3c68-4e8d-8773-145bb7a68787","block_type":"box","text":"for their continued service is not evident.","page_number":193,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"b972f077-0e0a-47b0-8e6d-ae401c946825","block_type":"box","text":"Capacity","page_number":193,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"6b2ab885-ef5a-427d-9265-bdc4dd686bb5","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":193,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"41b2a270-dadf-4cd5-ab77-60c587c615f2","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":193,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"9469eb3c-93dd-4021-b1d7-419ae1e379d1","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":193,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"e6fbe063-1e62-4f56-9b1a-6b21b09295a6","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":193,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"07b67692-1ae7-41a6-817b-1aa48a915d7e","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":193,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"ba9e1b80-9235-4738-8f5f-8d901ef31b52","block_type":"box","text":"determinations across markets.","page_number":193,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"f650c0d4-d461-4db8-b7d4-4f3ec281ed16","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":193,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"9533fcca-cd63-4768-8954-95925a668521","block_type":"box","text":"their duties to the board and company.","page_number":193,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"b90956e1-1d8c-4192-97bf-d8fb39f37bcf","block_type":"box","text":"Director elections","page_number":193,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"b4094bba-ce04-46bf-bc70-85706f2ed930","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":193,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"9d87f3e1-8d37-449b-a27e-b37e6a76958f","block_type":"box","text":"structure","page_number":193,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"380ec4c2-5797-46b6-83d3-ab17a13b3119","block_type":"box","text":"8","page_number":193,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"f64719c1-e645-42d6-862f-10ff055d1c1e","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":193,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"0cbddb0f-e2a4-47fa-99ec-61b9a33ae801","block_type":"box","text":"basis of its business model (","page_number":193,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"9a1e87a0-f06d-4550-b736-a496f080128c","block_type":"box","text":"e.g.","page_number":193,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"bbf5ad78-0027-47fe-bd7d-b7a0b3832e40","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":193,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"4213f5b8-1348-4ec7-a256-65b59ab72e1b","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":193,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"3daee8d4-de5b-4a11-82fc-d83b022a65a9","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":193,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"a2b9727a-fd89-4c45-b663-b35506df991c","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":193,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"94c7f548-d3e2-4549-8b02-0abab4275869","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":193,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"46d94f67-7994-4459-a9e5-2306bb09659b","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":193,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"080185b5-1893-4d73-8afe-6c08e5b91706","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":193,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"e84fb0fd-057b-41af-bd66-313c4e58baae","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":193,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"023de104-9452-4a3f-8d48-f532aba3ced0","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":193,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"429755a6-00e1-4908-9fdf-4c24e981d854","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":193,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"de03b869-1f8d-4742-8e5f-d39b178f6710","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":193,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"8451d1f8-4e3b-43a6-84f7-305010e5e4ad","block_type":"box","text":"8","page_number":193,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"87ec4940-7ae1-4d86-aa1a-0e452c127a6a","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":193,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"acc39017-dd3d-4862-8a3d-ff8689bdccea","block_type":"box","text":"directors stands for election in any one year.","page_number":193,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"6e8dcbe5-0254-4aaf-a488-5013296a18e7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ae7733a9-d015-4585-b257-ae4adc80e8c4","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"eac1d306-d087-4922-8409-fc42f7b67f0c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d45355fe-7d5b-4a54-87b0-d9857ea5ef34","block_type":"box","text":"Committees","page_number":194,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"dd5f98bb-ec66-42d4-aa06-b813a3db4660","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":194,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"eb02eeb7-c9f8-45e5-831d-086694fbc153","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":194,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"d8e61687-523d-4c56-86fb-c8e690ad41fd","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":194,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"76397170-fec6-44fa-9e68-b30cdbacfd63","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":194,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"e8d71ad1-1a71-4307-8d17-4623447283cd","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":194,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"8b2cb9e4-a0ea-496e-862f-596ab164b2e6","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":194,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"60bdcafc-169a-423c-9d63-5456fded98db","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":194,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"408a61d6-7dfd-44cc-a756-db8934d04038","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":194,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"6311c9ff-795b-4d0f-a7e3-fcd07fac95e2","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"d623a389-6b88-4006-b06c-0706d226a2bc","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":194,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"1a86d41a-3728-4ecb-8ca9-de32c5c2a9f7","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":194,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"f2b8d71f-783f-41c4-aa38-6b1bed14ed55","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":194,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"60bbdcfb-b8e9-462a-a875-87a56c65fb31","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"0fe3aa76-1de5-46d9-b235-61c6c2b253ea","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":194,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"b91642cc-3826-41e7-9ab3-56d465a9bc5c","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":194,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"ba5eda00-6e7b-48b1-afb6-c25a8aadb371","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":194,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"97722c32-e562-4cca-b1df-ad46a945f234","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":194,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"92b174de-132e-4777-b105-40b4b3d44c29","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"6d0aef12-0f30-44c9-8b55-5454b8f09463","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":194,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"712d7969-e076-4b2a-9a94-83643724d0ef","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":194,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"03075683-51e7-415a-b236-4043a8badfae","block_type":"box","text":"firm-wide compensation policies.","page_number":194,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"b4c581cd-564d-4eac-8e01-aa58f622fdf6","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":194,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"062bde76-cd4f-4782-b4d8-fa33457b4e98","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":194,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"a170ffb6-16b8-4b59-91b4-eb5c3ff03673","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":194,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"4fa67a35-ac47-46b5-bf59-fe3e8f8b4258","block_type":"box","text":"Board and director evaluation","page_number":194,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"595a3143-3b8d-4499-aa71-4d7bcf79eead","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":194,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"4069d50f-82cc-47c7-9177-14c052c39524","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":194,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"4b420214-4e75-49d5-acdb-8d3eae2a53d5","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":194,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"6f1efe47-2645-444e-bc08-db54b646f071","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":194,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"70174172-0576-494e-9022-856dc220d020","block_type":"box","text":"a result.","page_number":194,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"f00dbd33-410a-415c-9d4e-9ff9bda85438","block_type":"box","text":"Access to independent advice","page_number":194,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"22b81c15-c300-4a78-ab08-e6c8bd2abc42","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":194,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"97bd78c0-274f-4e16-a90e-5510673dc864","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":194,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"937244a7-ec9c-4234-b5f9-160b8cbd4f83","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":194,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"edbdb423-092d-4cf9-817a-69a5adcad101","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":194,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"1fe8b7ff-8af0-4243-9199-2c92e46da61b","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":194,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"a6b9182f-8797-4e1d-beb8-4590d191cdb6","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":194,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"be785149-eeac-4920-87a0-849b3e929def","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":194,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"81acb3e9-e1ee-41ca-9169-cad9b932994f","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":194,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"d72e0ed9-5076-49ca-a0d5-86482a50e5ae","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":194,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"713df729-d2a4-4956-8a40-5c1955eaa126","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":194,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"dcce04ac-d9e4-4355-8e4c-b4ae2bbf2737","block_type":"box","text":"performance.","page_number":194,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"4e0f7346-f9ae-4d7f-990f-88e5e8bae851","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":194,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"70a42985-54f6-447f-87ff-50caf17f94b2","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":194,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"54557afa-6941-48a3-956f-9544f3d243aa","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":194,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"56d4d05c-6125-447f-b4e5-d60e4b47a99e","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":194,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"2b954c3a-17c2-499d-a18f-197fd25a8e52","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":194,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"eafcbe73-567a-491e-92c1-fd2a4184cb4e","block_type":"box","text":"recruit and motivate.","page_number":194,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"072db35f-76d6-4849-9372-3a98b2bf8e46","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":194,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"ade76cd1-d0f8-42cd-b6b6-8d158b35d231","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":194,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"e2e52c87-c5c8-4272-97cc-4fc10c28f0c0","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":194,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"7c0453c2-428e-4357-813c-15ec092b6929","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":194,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"9bf6a236-91b6-4f70-9efc-560f1c2cc3f5","block_type":"box","text":"arrangements include:","page_number":194,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"1eb8523a-4177-47f6-94c8-92ca61490989","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"0c67a4c7-82f9-4320-b3a8-576e7e066754","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":194,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"cd0da81d-e19b-4c4b-8cb0-aebfae58a0cf","block_type":"box","text":"the company’s size, sector and market.","page_number":194,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"0022ef27-abd8-48fd-8e91-c1cfc8821074","block_type":"box","text":"BlackRock Active Investment 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objectives.","page_number":195,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"77a2a41a-ca70-4448-b5b9-a3695802743c","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"6f180933-2813-4810-864b-4718b7d9391d","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":195,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"825e2c9f-2630-4a2a-b20d-1047207be96d","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"27d850c0-c262-4acc-b27a-82d7e5ea8c22","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":195,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"157c588f-6878-4032-93d0-29d6cac839eb","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":195,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"c03ed14e-66b0-4a0b-afd9-4c6fd37788ef","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"70c8f258-0e4e-4fad-af63-6bc050b797ca","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":195,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"e4762048-a906-4dc0-bede-78ff948ce916","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"01964968-5b8a-4d22-ac8a-7b7e9815c34d","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":195,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"fe969271-dc31-4048-a714-ee1a02f04ed5","block_type":"box","text":"transparently.","page_number":195,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"453e81c5-3d44-4261-bfbb-489938d136e7","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"48cd0a85-eb54-4fdf-be64-29b5190280fd","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":195,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"a859cfd9-2642-47cd-8bba-4128c459d079","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":195,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"377ee26b-3877-4164-97e4-fe088c9f7160","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"218385ed-889a-412b-9be8-141c26e278f0","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":195,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"71fc96e5-1086-4084-a086-69357094aee3","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"b1379538-d577-49c0-af52-21bfd135d580","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":195,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"14c4fcb3-8b5a-484c-8fea-a5b0c7c2125d","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":195,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"9f4a37fc-8950-4d6c-be6c-ff35250456f0","block_type":"box","text":"misconduct.","page_number":195,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"ed381cca-5d19-494a-ab5e-31eb2e4ecd7d","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"ed06a19d-5f51-4be4-ae90-72ff470047ce","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":195,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"f7d4545a-8286-4be6-9e29-17726da21731","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":195,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"2283cecb-b59c-44bc-b2de-c528a08bfae9","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":195,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"d91f2581-06b6-4453-a81b-7e28f5da767b","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":195,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"256f4d69-30d5-4973-9367-4412606aac05","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":195,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"2eaab636-f782-4c14-89a1-92af1b07932c","block_type":"box","text":"committee, or the most senior independent director.","page_number":195,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"4e75ee89-9193-4c97-9c4d-196b6565e3fb","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":195,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"b1939326-4c8e-4107-b0e5-1fde6a5fa55a","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":195,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"404d8bc6-db3c-438c-9f26-652052d4750e","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":195,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"9a477002-d18c-4405-85ce-4c1f50dc29cc","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":195,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"4c47c63f-46d0-44fe-ba70-dc37ba4e8426","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":195,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"01150322-a63a-4db9-9273-29189c0bb1ff","block_type":"box","text":"CAPITAL STRUCTURE","page_number":195,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"3de8396a-3c69-4e58-9352-eab5498d398b","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":195,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"5c31fca5-7205-4d11-a662-bb5981c6d75c","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":195,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"14f7120a-cd17-4fe2-b96f-b3f552c79add","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":195,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"cc9244d7-3485-4888-b402-45313051dfba","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":195,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"b7e3aa28-f73e-4a99-a9f6-0b92aa360cfa","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":195,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"bbbba46d-e3ca-4ed7-8e4f-410a4c12c8ba","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":195,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"ddba7b87-6b84-4275-b004-0a0fe3878f08","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":195,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"8fe1db5a-c7ac-48ab-b2d6-a29fe66e5c3b","block_type":"box","text":"Share issuance","page_number":195,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"2fc9d413-8e1b-4f9b-b9a5-54a7f5f1fa5a","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":195,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"5a74f808-b34b-4a33-8615-4b00180a5704","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":195,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"d7845f8d-d6ab-40b9-a701-41f598499483","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":195,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"bc010950-3202-4602-a6a2-cd395d3f4984","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":195,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"8442d552-8099-4fc9-9cda-d55e26e5d1da","block_type":"box","text":"market environment.","page_number":195,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"b195221f-b40e-416b-9412-1c4dfd77fe72","block_type":"box","text":"Share buybacks","page_number":195,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"79c88b78-6f13-40ad-8432-28c280e5bb2b","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":195,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"2c6d5294-5b36-4095-83ed-daef15112a29","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":195,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"439bb885-63e3-4e5b-a024-1f71482feb48","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":195,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"32f92c45-d80c-4e24-8ebd-62345cfa526b","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":195,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"b024c007-b446-4fac-adca-939b3b2dc9af","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":195,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"790247ac-b0ed-4cae-a92f-17e086d38c8d","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":195,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"870e3771-6d56-4d3c-b0a7-c1ab8264fb81","block_type":"box","text":"of the company and the market environment.","page_number":195,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"9f7fc71d-65ed-4284-91e4-0118428f37bd","block_type":"box","text":"Dividends","page_number":195,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"d653693f-6b0c-4d28-971c-5a55f9d28a0c","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":195,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"00b34b5f-f44a-4526-bc2e-1933d4e2536e","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":195,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"2b004a0d-2c47-4fb4-b27f-005ae015d233","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4350d9bc-c2ed-4a4f-93e4-412dce95d4d8","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b2131be8-c017-4f26-ae38-6f06a245d790","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc4546ad-84e0-4dce-83ea-63bd0b22d147","block_type":"box","text":"Differentiated voting rights","page_number":196,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"6fbac18f-f049-46ae-beb8-fd82fccd35f2","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":196,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"2bc9bd6f-e18d-422b-a7f7-292c42be729b","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":196,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"8c939b4f-8fa0-4cb8-8095-3922898408f3","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":196,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"fa41fd58-80a5-432d-bc1c-d4266e31d5e0","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":196,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"d1f4bd16-61c5-483a-867c-744ff162e8ae","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":196,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"ece87e59-c273-4f22-944c-35c18dfaa3bc","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":196,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"a736f463-bb87-4d25-958e-05b78110ecc1","block_type":"box","text":"analyses of proposals.","page_number":196,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"82a52211-3c36-469e-8b21-5cb583415a4c","block_type":"box","text":"Mergers and acquisitions","page_number":196,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"d1b0c49d-8c85-451b-b829-ea50963ad521","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":196,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"3b2b5f44-bf78-4d55-b730-146de84e289a","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":196,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"17e8ec23-12da-480c-8dc1-6d28c264210b","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":196,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"7462132d-c9bc-4552-ad46-90209afa9077","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":196,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"cfed616c-a3e9-43f0-8da2-b128f4fbaec8","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":196,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"12c26737-f158-45f3-a60f-b765d16a22b2","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":196,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"ead79c36-4389-459f-86f4-9db829df01b9","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":196,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"294825f2-3a10-442a-92a6-60f2a245fbe6","block_type":"box","text":"Anti-takeover defenses","page_number":196,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"845d0afd-eaee-4a9d-a130-3f01ec14ac7e","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":196,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"eebead66-7f43-4111-8467-c3306936456b","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":196,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"e50f0ee9-96ea-49f7-994d-f6c691bdd1dc","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":196,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"c1a08a84-7694-49fa-95ea-2508e841bbd1","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":196,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"ef8e5e2b-07ce-4d4e-8dad-dff13814ced5","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":196,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"4b0c233c-1ce8-4cf7-b3d9-3d2199815f83","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":196,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"9fc3d0df-76ce-44da-914b-fe981982603e","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":196,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"61ae7bbc-3045-4cbc-98c8-e7096601ec26","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":196,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"5fee589b-4719-450b-86ae-6831edb8bfbc","block_type":"box","text":"Shareholder activism","page_number":196,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"41c25e29-6ff6-4a59-bb7c-49afbd85c0a1","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":196,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"19d01949-378c-4648-a3cf-6b9f614cd0b4","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":196,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"43092b9c-91be-477a-93c1-b838be9eb086","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":196,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"919b96ce-02fc-4f5e-b5be-e82351455195","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":196,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"299eb535-a9c6-4472-b4f5-fb123f49faf2","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":196,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"2b829b1c-b707-4cb0-b189-670d64c29483","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":196,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"4ec3d906-951e-4c8f-9f28-ac694104cbe5","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":196,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"cbeed111-54ae-4a3c-ba64-30be6d9a18da","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":196,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"0b624ecc-89ed-4b8a-a25a-490cb1c043de","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":196,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"79831ecd-f623-4d3d-b697-690c68a9da48","block_type":"box","text":"protecting shareholders’ interests.","page_number":196,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"9aef1580-c23d-459b-b790-edb9eebfdfc5","block_type":"box","text":"Significant shareholders and related party transactions","page_number":196,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"d0a5949c-41c8-4cc5-8528-3c5b11968bc3","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":196,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"58f536db-6b38-432a-a8db-d3bbd408f094","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":196,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"cd45a992-a557-46cc-b930-96b7dc1c9d9a","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":196,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"0afe3ab8-4723-4d6b-bebe-7807441032d3","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":196,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"c710d33c-32c3-4b3a-b47e-eb120d0cb6f0","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":196,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"90bcf14a-1834-4f95-b811-471fc3418f2b","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":196,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"104bad9f-8170-4aee-8124-5d28ad9871ce","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":196,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"4ff29128-ebd3-48d4-8176-8b08d1c4869d","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":196,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"7dc640ef-3b9a-4f5d-89b9-cb4d0a6b2574","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":196,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"d5ba69b8-179e-4cc1-b87f-26619c65ba52","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":196,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"2154e8d4-24bd-4547-bfd1-3468fe6ec509","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":196,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"da053400-a27b-4c21-8eb2-3cbe75509ea3","block_type":"box","text":"audit.","page_number":196,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"a45af32e-ec20-4e57-a06c-33d9b03be77b","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":196,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"96be7aba-0e4a-451a-a11e-7a92b86bf7cc","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":196,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"98763515-91cb-4155-81e4-ed7b13302b90","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":196,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"b2c5cf50-fcd8-4b25-8e6d-7d18b9d17d7b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3d5f0f23-e594-4417-b0a0-9662b7a25caa","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0dd93c63-1c05-40fb-a9f9-b2d3663a56bb","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbda023c-f8e9-42e1-929b-f10dba5fff5e","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":197,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"e82c1730-e2da-41d7-9b67-fda429f788c4","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":197,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"32877d67-acc8-4ca6-bf31-f0512cc4b0a0","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":197,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"f62e99c1-ab20-440a-b8aa-770042252b78","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":197,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"9ec5bcaf-c4d2-4cd1-ad78-cf066921ffc2","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":197,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"9a2f2d46-6b02-4a55-b2cf-11efb4d5727d","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":197,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"a2bb0df6-9c1e-4d50-84f1-6affe3cd8388","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":197,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"f93abad0-e0d5-4a82-a371-d814b4ad1c13","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":197,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"441f22ba-2ae4-4c01-9438-f9305f33db1f","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":197,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"bde56460-e5a1-4663-b6e8-023595aa3bb7","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":197,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"b8e89f24-36cf-42de-acf9-0d5f39525cb4","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":197,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"94a5e0df-e937-43be-94b0-e7760e3a2f09","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":197,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"f9b997ad-452f-4bf8-a7f2-1f9230db1a6a","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":197,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"e81492ac-6f3c-4ee1-96b9-95a99b670d51","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":197,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"2a5f4002-27a8-4f3b-aad5-744c63a74f9d","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":197,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"9e5b8a16-8285-4328-b76d-54e0e3e0aa37","block_type":"box","text":"9","page_number":197,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"3f836f7c-2265-47ad-9ed2-4b5f89577cb1","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":197,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"d5b382d4-2886-4ef5-9204-5f4dfec9c244","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":197,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"55c6da2c-daa4-4206-a63d-087c1d992d4d","block_type":"box","text":"standards specified by policy makers.","page_number":197,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"d381db97-cdff-4737-ac56-25a65109f48c","block_type":"box","text":"10","page_number":197,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"bbfdd2af-a47e-443b-a602-f9304980a46e","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":197,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"ce25a810-a866-4868-a707-d35dc885cf32","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":197,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"12f64c20-9170-4775-bb30-12540ad3bb71","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":197,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"a21361bc-e262-4bf7-8e66-c1421a11f792","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":197,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"6e2d70ce-1a33-4885-aa03-ea4b73790e64","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":197,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"5474eedd-9bb3-434f-813e-de127b9e10c1","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":197,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"4cfb96b3-6823-49bb-8165-b9820984c4dc","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":197,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"a0b90d8e-179d-485d-a043-2572b7ee71df","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":197,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"f4b9175d-7526-4e72-b85c-18dca11c691c","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":197,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"4307d7fe-c92e-45f5-9dfa-6ce2d4a1d1e2","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":197,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"1e9f7413-f9ee-4d64-b01c-01e8f616c705","block_type":"box","text":"remained independent.","page_number":197,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"f02b239c-c0ab-4aba-88b2-10ecd50d376e","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":197,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"43e2a2b3-5fc8-4ed4-b00c-86c797dfc4bc","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":197,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"29eadbc1-d2e8-45e4-8f06-61de8f67773c","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":197,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"c10f0367-4b35-45a6-b89f-48cf73c84455","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":197,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"5e82f6e8-35d9-41d7-a9a8-699a69a123b6","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":197,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"2bdf3dfc-10f6-4dd7-9376-33e678b835cf","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":197,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"7e149187-a49a-4e67-8d70-193f1995f6b0","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":197,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"67c8f172-d60c-4b1d-89c5-575569d4db98","block_type":"box","text":"General shareholder meetings","page_number":197,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"5e2e29d3-d6d8-4aeb-bb13-18e624a495e3","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":197,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"22190a5c-4394-4861-a92f-ba8cbfb07092","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":197,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"0e29d93a-ad20-43b9-8980-2e3631a5258d","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":197,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"d0514f3f-a072-4343-9cc0-765047fed345","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":197,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"561df570-825c-4031-afba-ac3d8066e2c9","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":197,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"57ec1ee3-d1b6-4051-b6f6-fd229d9a11d1","block_type":"box","text":"an in-person meeting.","page_number":197,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"90bb421c-c2f1-4df9-83f8-6da020448f24","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":197,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"48443e47-4023-46f6-827d-3d73f1e974e5","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":197,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"c2901674-1efa-4cd7-aaba-9422f540e211","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":197,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"a6ab2d8d-70e4-46db-9558-7266657de7f4","block_type":"box","text":"participation.","page_number":197,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"c0d31582-3ee3-4aca-9069-784ce5d61436","block_type":"box","text":"9","page_number":197,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"54bf0bfb-fe40-4bd2-b09e-69f3867323c3","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":197,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"0a987a7b-88a9-4fec-a883-1c4c581bd011","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":197,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"eb1044e5-f470-4c15-9c66-a983993966fa","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":197,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"9b58da7a-7742-481d-aa6e-baa770f37914","block_type":"box","text":"Disclosures.”","page_number":197,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"8824a2f8-6378-48d3-9ccd-d187df68e104","block_type":"box","text":"10","page_number":197,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"ba2bfdfe-080f-4df2-8335-1fe0dbc976c5","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":197,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"729a560f-b6a4-4bc8-8261-0fb435587cdd","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":197,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"e030365b-37b5-413f-9b2a-8ef7a9386dd2","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":197,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"00223d04-165b-41e2-af17-cf3d0161a1f6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"87c4d7f9-9877-4133-a69b-43eafeb4ab5c","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c62b2e05-b924-45f6-9ae4-dcc40a9dde01","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8c217bef-4fa1-4edd-a150-1780f3ecb414","block_type":"box","text":"Bylaw amendments","page_number":198,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"a8f4fbed-9fa3-490e-823e-9015f5cb3c92","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":198,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"29be511b-6807-4d93-bf0e-a73349388fb9","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":198,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"59272fc0-14b0-4177-8457-9731e9c450d1","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":198,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"f901fb8c-6ea0-488b-ab38-1aaa2d4e871f","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":198,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"349ee05c-48a7-41dc-83ec-d9d6f2f28c3c","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":198,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"e6922e1e-a2b2-4109-8b67-f4036b83c937","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":198,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"5d19b821-3afd-465e-acf6-4c9c51f6f56d","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":198,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"b9c80dc1-5578-49ab-8d41-39f98204e72c","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":198,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"c272c75e-2776-4b1f-bf8f-26042166a2e8","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":198,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"73063d35-b15b-479f-ac27-77161b7d268a","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":198,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"5aa2f43f-7e05-440e-92be-23535a787a59","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":198,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"8121bef9-dfb1-43a0-9479-5f0cd1477565","block_type":"box","text":"nomination process.","page_number":198,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"15bd76de-2022-467a-9458-1e31438f6755","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":198,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"bd178b8f-ad61-4ecb-8609-95429fd2b5a7","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":198,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"4251f82e-f38a-447a-b494-7763076f288a","block_type":"box","text":"Change of domicile","page_number":198,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"f854c92d-2924-4f03-99e8-e7fde23debae","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":198,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"cad95a8f-d344-48bb-9b7a-25d15e741687","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":198,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"8a5ddae8-4403-42e7-9310-903b9059f726","block_type":"box","text":"immaterial.","page_number":198,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"1ecb4b93-4209-4836-a3ab-2022c44254a1","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":198,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"9ab314b0-6e10-464a-8955-6130cd74116c","block_type":"box","text":"with our clients’ financial interests.","page_number":198,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"202d61f3-9e78-426d-9be6-fe218a2279a4","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":198,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"05661436-832f-4ebd-b271-9075189aff9f","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":198,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"1130f0aa-599d-4412-8268-fbb7fb98faa6","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":198,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"716b0255-9bdc-4c14-8727-4dd7aa98bdbe","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":198,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"fdeedadd-b583-49c1-b425-8b6b1b3b0aa2","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":198,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"5069d5c8-68b4-414c-a9ce-4620de24ef6e","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":198,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"970c2664-5a12-4c6e-8c48-1487235a761c","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":198,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"9d217664-4e7d-4efc-9e59-e446b4435b31","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":198,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"1e84ff27-3176-4a57-97ba-032721ef4ea9","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":198,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"16c9411e-d733-4c37-9eed-b072b862942c","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":198,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"14c03a37-d36c-48b9-8953-738c78431f30","block_type":"box","text":"relevant to a company’s business.","page_number":198,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"29bb84c6-0b0a-42ae-8e65-3a3f9b145273","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":198,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"0c0bbfcc-e652-473a-a919-2f064adf57b9","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":198,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"9a267b4b-a1cb-424d-8b4c-ba37213690de","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":198,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"c8e44b50-538e-405d-b839-83d21ca6c0bb","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":198,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"42d694c8-2018-407e-9ed5-5d83b9b8408c","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":198,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"bf16c143-3e9a-4906-9587-eef79caeefcb","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":198,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"2af22342-2f68-4cf5-87b5-c6cb28d34653","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":198,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"d20dbfe1-ca55-4987-b93e-52e3c4a6924e","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":198,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"25f51dc1-b922-4aab-b0d0-61f644b1775f","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":198,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"746b8483-462b-4697-ad6b-011eed5a3d95","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":198,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"a69afa1d-7993-4817-bdac-fdc527d7c2e4","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":198,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"0a14329b-b09c-46cc-84ef-a14b3a99516c","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":198,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"01716ff3-38f2-4066-91c7-4cd5eaae2d02","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":198,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"98b15cc7-f6c0-4dfd-bae4-e056721f0fc3","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":198,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"dda3b2d0-15c9-4c84-9ac1-2f3792fed53b","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":198,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"91e284dd-45e2-4c9f-8014-cd568405e870","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":198,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"241a176c-d146-45ae-a942-108a807f149b","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":198,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"96993d5e-ac43-4cbe-bd47-9bbed29ab38a","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":198,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"f76b4589-d01b-4fbe-a775-58167aae698b","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":198,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"1c3c485a-f54f-4fc6-9b18-36b90c4cf722","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":198,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"0524c471-baff-45dd-b232-70e1cf393197","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f538d362-9020-4b43-bbbf-450df724a6ed","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"55dcf4d5-d760-4a18-bbe9-8532937b6cff","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35f15ea0-5ce9-4348-8f21-1ba947ddfc9a","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":199,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"a89fda1a-90e8-41dd-bb4e-190d4de8d0a1","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":199,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"45df8a29-4259-421f-993d-551bc61181de","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":199,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"2a31ab70-a502-435c-9eb8-551b77c35783","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":199,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"db3d9d46-beb4-4603-8fec-d45a4c075a79","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":199,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"36423d61-a7cc-487c-969c-5d7c283d2261","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":199,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"21c018e0-d2ad-4ccf-bb40-b3b16f149118","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":199,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"3871f760-4daa-4baa-9ce3-31a63d3852ae","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":199,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"767b877b-579d-4692-b1d6-1a2705f7c877","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6c56c158-cad0-4807-a929-8c010f24ddde","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"deb52c7e-edba-4da5-ac68-87637585715a","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f28356b4-5419-45b4-824f-6701a3f349c8","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":200,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"5e7c2687-d3e9-4139-b179-04576c56b7b6","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":200,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"cc3555f0-6c16-4ee9-b330-c6593c7d35be","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":200,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"6cf88848-00b8-4fd9-b33f-c611699f38f7","block_type":"box","text":"11","page_number":200,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"325c22a6-70b4-453d-863c-d7c7b867fe71","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":200,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"577af342-0908-4502-99d7-98525120c2df","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":200,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"235015c4-6234-4ff2-a912-6f3ee3f51b6f","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":200,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"e8bf41c6-db5c-4b3d-8ab4-7a5f5adb06fd","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":200,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"e58c63c9-f298-4c75-95d5-0e6b04a88a4a","block_type":"box","text":"regulatory requirements.","page_number":200,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"8af08dd3-bd28-4102-a44f-b14b449574b2","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":200,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"4b4d786c-95c0-4a02-a51a-c3d1cf6814a9","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":200,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"1d66b946-4fd0-4739-b898-a9e70aa54baa","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":200,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"5b688408-3c53-454b-8ef4-3173a2e1ea4f","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":200,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"a91937ad-f8c0-4ad0-8bc7-d32cea8da8bf","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":200,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"c2001c6c-3506-4fdd-9e77-a3f29261ea87","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":200,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"2e3dedda-c046-4ba5-b4d1-48e0e3726487","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":200,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"a3f57341-671b-4bce-8e41-a2a1d44c9043","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":200,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"7754705d-7507-4cac-a00c-426686fceec3","block_type":"box","text":"returns.","page_number":200,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"8184bef0-f1f1-4526-9cee-011fd55f6652","block_type":"box","text":"KEY STAKEHOLDERS","page_number":200,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"49ec665d-0647-40aa-b110-c3fe8ce97fb9","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":200,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"54a5f511-2864-4583-b650-62cd2fb74fb3","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":200,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"7b962a1b-6c56-4c5f-bbef-dfe5b7688819","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":200,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"b75a1845-44c1-4f0a-9634-92523ca0d035","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":200,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"dd37197e-f894-4503-aa38-1b654391a8da","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":200,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"b6780d27-e4cd-48b8-86b9-f5ab328b0e24","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":200,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"a6330c74-643e-436d-9fa1-1dd76a124899","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":200,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"743ac96b-c984-4530-8098-4521357d030f","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":200,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"e1561058-0b4b-4bba-944f-206919527e1f","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":200,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"3febdad8-d6da-4421-9419-0da42b3fd811","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":200,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"3747b4f7-243c-4448-b347-f35b370376aa","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":200,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"47c6427a-ac65-4fde-bbff-522ca69c0523","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":200,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"284c00d2-e291-428b-95e4-605143d2a022","block_type":"box","text":"i.e.","page_number":200,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"e27b4ff2-a984-459e-9642-fbe512c121f4","block_type":"box","text":", one in which global","page_number":200,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"7b4397ab-f3bc-474c-8462-e0ccef93f7cb","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":200,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"6711a085-cb9b-4866-a3b4-1b960a0fcc85","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":200,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"9b66b557-ee86-45c0-bb5b-f8bf81ad5bf1","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":200,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"5876d344-71aa-416d-845d-27f45f33d9f5","block_type":"box","text":"client.","page_number":200,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"7992434e-9fee-4ca6-ae7e-784cfa808c49","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":200,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"4e8089e3-8e8c-4a13-bba7-9865924dfbfd","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":200,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"c170fa7b-1740-4bc6-9c37-c1a3d43b3c56","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":200,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"772705d2-ed69-44fe-88c2-f0c83fceaecb","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":200,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"72e2885b-6072-4ead-a844-0f742a3a982b","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":200,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"6321582a-61c8-4b33-8767-db2e1dc06301","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":200,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"4b936f5d-1f1f-442f-96ac-b8490878e345","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":200,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"258a12b6-2d03-4e95-a182-fbe324874f55","block_type":"box","text":"1 and 2 emissions.","page_number":200,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"c414e7e3-a452-4d0e-a016-0342a6bf3b00","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":200,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"db2b0a45-ba1a-4b12-9c84-c78f386b474c","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":200,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"a26defd1-e345-4ff5-963d-4cdcba9fe625","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":200,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"ee6910e1-24f7-48d4-bdb2-25380c16f7cd","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":200,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"4f034d00-da84-41c6-8da2-2d663f75d483","block_type":"box","text":"11","page_number":200,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"245c5cc9-a0e5-4412-9684-01ea28e3c670","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":200,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"f49b1680-ea84-40a8-b327-2e77611c7700","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":200,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"6431f6a1-ada6-4da8-b139-e109192b7223","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":200,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"c55fab23-c6dd-47b7-bb26-88b25ef47f7a","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":200,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"e2346d3a-33cd-4be2-835c-d351f08a7ce5","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":200,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"191cbc33-a4b6-4a08-a6f7-6d067e677773","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":200,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"20fd1746-67b0-436f-8017-d13dc9d981f7","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":200,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"089881d5-9aff-4821-af29-dc6ac6406f61","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":200,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"62572237-d733-458d-9266-905ffb86b0f7","block_type":"box","text":"sound governance framework.","page_number":200,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"2a7374a4-aab7-4728-b709-7eee25e79d81","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"80d80b31-8d4b-4b28-9d3e-6e810bbe1faf","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"76744d36-9d74-468a-9027-bdf75ccbc5c1","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e3ec6fa-9dc9-49fb-91d3-af78873cee99","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":201,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"a282c4b7-aa4e-412f-bc5f-b4cc92330e30","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":201,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"e7a8b1b3-c686-4873-89a2-e14ee919f639","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":201,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"9d51e98b-7f9c-4116-b123-682144a43528","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":201,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"43c2b418-295f-4164-a661-a35385448e45","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":201,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"0f377c01-26b1-4169-8bae-6a31152b5d79","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":201,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"e1533bac-8c95-4a71-96ff-0bc69c12e02c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c4bf6086-7744-4cb3-b47f-d5d6ed7271b2","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"3dfabdb9-7024-4212-bbff-8e172e898f5d","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41dae5c2-f5e0-4422-a947-0f68b8613a5c","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":202,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"50c81e2c-b7d9-4ff5-b3a6-807647f1b2b6","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":202,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"fdeaf10d-b926-4efa-9ac7-731bd271b3f9","block_type":"box","text":"Oversight","page_number":202,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"f53482f9-c331-4ff3-b698-6286ef6770fa","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":202,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"5bf2c4fb-5f5b-448b-af42-e8a46f41b0d4","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":202,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"10ef3e78-ab25-4e7f-826d-8c5b6afcd8a9","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":202,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"671e2fdb-99d1-4242-a160-ea72943c0bce","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":202,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"a17d4f1e-e167-451e-be60-181b44e5e782","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":202,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"1608b966-0637-4749-9089-d25b3b0af85a","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":202,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"66d3f16a-b200-4c80-ab42-6c5b50dd79d9","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":202,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"096cc446-0778-419a-9253-4267b72ede79","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":202,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"1826120c-d79f-485e-b594-71ec40b7c8d6","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":202,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"2bafc44a-1641-4267-8f02-995788f496b8","block_type":"box","text":"relevant active equity investors.","page_number":202,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"d34398a1-0d13-4497-be42-da8a4b07b35d","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":202,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"0c4afd7a-ed26-409d-8ac4-d8c434940ccd","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":202,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"0de3b77f-158c-4a7d-afa3-a0becf3713d7","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":202,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"fd383999-f572-4262-82de-7495762c8cf9","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":202,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"4f3b6ea9-7af1-46ce-86e6-cecc9f4e4d21","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":202,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"064da8f6-82e9-46ef-a55e-d4aa0d17c63e","block_type":"box","text":"third-party vote services providers” below).","page_number":202,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"26604d99-ba82-4796-9042-6ed4e8a20a09","block_type":"box","text":"Voting guidelines and vote execution","page_number":202,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"be83638b-c229-4366-8bad-327736ba2c8e","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":202,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"7cc5f5ef-0a8e-4853-bbb6-1d6cfe8d9efb","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":202,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"64ac5ffd-0062-4597-9963-f8d5d7a7a056","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":202,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"70a0067f-d7ee-49af-b3fb-2c6563fed5f2","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":202,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"b5fbb327-caba-4651-a852-a81684f34404","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":202,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"c80aa9e2-0406-4f4c-a670-c241dea10f3c","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":202,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"be385178-36ea-4611-9537-6f5600210eaa","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":202,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"3bb7dbf5-cc0e-4cf5-ad74-157a0c9598ef","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":202,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"58c69076-d178-41b1-a0bb-345f734373ec","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":202,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"d3551b7c-4d09-46ae-9b6b-fbbf8ba33ea9","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":202,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"0294095b-3c05-4963-a5aa-bcd804cb6940","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":202,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"2aa91e73-a266-43f9-a83e-ba3505fbabbe","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":202,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"183d9c2e-0805-40bf-a555-d3960f777aa7","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":202,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"1d67b71c-dd03-4ed0-8e2a-e3baaaa29158","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":202,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"c0ed293c-0076-41ca-a66e-74b5016b40cd","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":202,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"02545fd9-80aa-4543-bd00-5935bbe8b78e","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":202,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"422e8173-0e75-4b35-b654-6f5ee4d770ef","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":202,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"451999c5-e42c-46ee-a833-df55ca8d3278","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":202,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"2e58799f-22f5-4627-8559-079c6bb7fd2f","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":202,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"6504b6ea-d198-4e9b-97c4-d423fe3a0fb6","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":202,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"13c79f0a-7da8-4753-963e-1c892c63f42e","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":202,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"5b177c9e-f6af-4a0a-b4c4-53c9d78f7316","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":202,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"e9261a7a-e4d3-44e0-a462-e7081d1d3b1f","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":202,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"48900cce-b4b3-4b59-aace-9c5d883c96d9","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":202,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"355dc14e-4c5b-494f-aa4b-288a80dd78cf","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":202,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"c9162d53-0114-4f3d-8e60-a41c9ae1ea67","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":202,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"ab168727-574d-45d5-85c7-97472eda4857","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":202,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"42f8029d-19ed-4776-9160-2dcbeb943046","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":202,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"9fae0367-859d-46ec-b76d-30e4dd171426","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":202,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"fab8537a-878a-4286-a2cd-290209482f3c","block_type":"box","text":"Voting Choice","page_number":202,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"37240735-45cf-40c6-80c9-43bb3b4ac969","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":202,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"b7265df2-8489-4e60-a7f7-f320be0c87a0","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":202,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"81587c33-2530-4b28-b0f8-71f9438b5446","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1199a075-1477-41a2-9872-43da6d08bc03","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"3363a832-ebed-4f82-b84f-69c4ced82f83","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"17bf6c0f-d8db-43ca-aae5-aa5357524b3c","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":203,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"99b53901-0207-420e-bde9-6355c14e614a","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":203,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"5530d966-39ba-4d28-8bab-2bf018864112","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":203,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"396b39f8-dec4-4e87-ba65-195a18dbcc9c","block_type":"box","text":"strategies.","page_number":203,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"ac737869-90e2-405f-af76-b1cf57a105cf","block_type":"box","text":"12","page_number":203,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"fc68acbb-1316-4299-9a59-1ba35dfd87d4","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":203,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"3054aa7a-c505-4fbb-9932-a649fdd3114b","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":203,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"c10190e1-76c3-4719-997e-f425a1c8cdf2","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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All other trademarks are those of their respective owners.","page_number":205,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"67c54dcd-cc8b-465e-80df-b7845debe27c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"40d9099e-d6d5-4f4b-9458-e92f093e9599","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"395896cd-e537-422c-b136-12744653cc96","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ab29c31-2358-4fe4-b173-a6fa2c6e9e18","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":206,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"6ee3fbb9-1cd0-4055-b20a-8363a8f27c3b","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":206,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"697070e0-5396-4e3c-87c9-ef0e040c5a05","block_type":"box","text":"□","page_number":206,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"16534f6f-2063-420e-a34b-09ed21d63142","block_type":"box","text":"Money Market Funds","page_number":206,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"f726f308-4471-424d-a3b9-c64c44c52dd0","block_type":"box","text":"□","page_number":206,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"9a2161dd-6fa2-499e-856f-50478c544f9e","block_type":"box","text":"Closed-End Funds","page_number":206,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"52808d1b-aec6-442d-9d50-d2fd13973d39","block_type":"box","text":"□","page_number":206,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"6adc352d-1b4a-4b76-81fe-d1ab2ff3ca97","block_type":"box","text":"Other","page_number":206,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"c5ea1727-299d-4a73-810f-886dce805b5f","block_type":"box","text":"Objective and Scope","page_number":206,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"1bce27f6-d6a5-4a65-8c47-7d70494c1331","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":206,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"df20fecf-16cf-4d98-b614-f51889aab721","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":206,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"3bb17f87-9525-48e0-a191-21a6a565dc0b","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":206,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"0137a987-4abc-4b00-a882-073283e1e130","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":206,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"18353d4c-d957-41d0-9876-d7c3247b9d49","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":206,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"6f2f6d45-0ea0-4e49-ac77-72a8ff4c7851","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":206,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"0fbd199c-3f38-498f-8073-c5f4c5456465","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":206,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"43f6bd09-4f23-438a-ba3a-0c4c103b72a3","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":206,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"e28bcc72-0c1e-4fe3-959f-6f4aa71ddbfd","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":206,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"124735fb-aee3-4ec7-a789-4eff53dbeca6","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":206,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"b3cc2565-6180-48f3-a628-990e9150e63c","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":206,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"efb74c0d-df76-4c8d-ab3a-0bd8e3d3ebd8","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":206,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"99379b2a-9217-4c2b-ac5e-442ac3ea0933","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":206,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"056815d9-cff7-4513-93c0-28d26f684480","block_type":"box","text":"Appendix A.","page_number":206,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"a05f19d9-4453-486e-a4ee-9d79f9dc7de2","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":206,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"2fb1da88-ac2e-44ed-9a5d-8b28f9f83cad","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":206,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"3a911ddb-ed11-4c51-889b-bfe4b8bfd129","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":206,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"dbc5a496-c046-49b7-a997-92e6e9821c4c","block_type":"box","text":"Conflicts Management","page_number":206,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"31da97ce-0620-46eb-b984-19ecd1fd56f9","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":206,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"fdce4ae8-9db5-419b-8f66-13a72d58149f","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":206,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"90ec6bfd-7f94-4538-a7c4-2c90ff3e76cb","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":206,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"c19f9d11-c90f-4b60-a69c-90275db6c9d1","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":206,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"2864a440-b4b3-416b-8374-b857b6dcfdd2","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":206,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"cfc64af9-6a3f-446f-934e-7c29c6a9b5f5","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":206,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"480cbcc1-6cd7-4134-bb8b-f56854b5ac6a","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":206,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"857961c4-859b-436c-a39f-f4842ca28b30","block_type":"box","text":"In certain instances, BIS will engage an independent third-party voting service provider to make proxy voting","page_number":206,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"e47d29ea-fa0c-4d6c-be48-7d7c446edbce","block_type":"box","text":"recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":206,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"655a99ba-79d7-47dc-9d3c-24f859d3b359","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":206,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"2d6df21b-c758-4e9d-923f-e1efa5140acb","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":206,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"5fde15f9-2a89-40b4-9959-4f1ffa258d95","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":206,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"ec1bac9e-7d3d-4697-a540-5af4e83dd247","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":206,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"6148ae82-91c0-42a6-af98-810381f81dc4","block_type":"box","text":"connection with proxy voting.","page_number":206,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"5a7f9aeb-31f2-42ba-9621-07739a726f4d","block_type":"box","text":"Reports to the Board","page_number":206,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"3b9957b9-6d1c-422c-8fe3-c418369d6a26","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":206,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"5016fbcf-6b77-4124-ae9c-7e8ce27f68aa","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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Through stewardship, we assess how companies are creating long-term financial","page_number":210,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"44368750-5d19-40a7-9991-ec4aed3e7b9b","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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Engagements provide companies with the","page_number":210,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"4d9f6267-bb0e-455f-af61-395889960369","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":210,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"53651ba4-6d67-437f-8ab7-6617f69dbe80","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":210,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"d511d73d-1526-46bb-bbb9-f9ecf4c5206b","block_type":"box","text":"1","page_number":210,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"6d1bbbcf-6055-413a-bf16-f92bdc65b391","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":210,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"46e73661-f72c-4e80-91ff-056353359846","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":210,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"c5b0b552-b807-4a17-a244-e2056e3be156","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":210,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"c5cba039-4ab6-49a1-89a3-430298be41f8","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":210,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"f5e4ddc9-ae90-4c43-aad4-cb7a1303ecf8","block_type":"box","text":"2","page_number":210,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"67b3bc9b-493e-466f-a79b-ad3ab906212f","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":210,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"4dccb6bd-0ec6-492c-a43b-ab71e32bf37b","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":210,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"f09561b6-4629-4194-b0f4-e560c3478400","block_type":"box","text":"material business risk or opportunity.","page_number":210,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"cb27c1ac-ccb5-49f1-82e4-5a3849796fcc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d07dd95c-44f7-43bd-9f24-e276dc2db79d","block_type":"box","text":"Global Principles | 3","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"5e81a54e-2968-4ee9-a982-75dccd55378c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e778e8a3-1a04-4068-a9dd-7c9c23e9ba7d","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":211,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"ca644148-6836-44dd-aade-61a815a8fd4f","block_type":"box","text":"governance. 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These are topics that shareholders may have","page_number":211,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"954b4a1c-5ca7-4dc9-954a-f4039222e7fc","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":211,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"26cc1689-0be8-48d8-970a-f1e1b1519ca0","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"b5069776-aded-4357-b921-df2579845d0e","block_type":"box","text":"Boards and directors","page_number":211,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"f8f250c4-207a-4fc9-80fb-e5d02e56e356","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"513f1423-85fe-4c76-901f-300c3435c0b5","block_type":"box","text":"Auditors and audit-related issues","page_number":211,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"0a5cd6b7-bc87-4302-a855-2717e36f573c","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"97b59903-5a6a-4dff-bf79-45ff809c9769","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":211,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"e3f13283-68be-4e83-97d8-a41a22b84a42","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"10f388b0-0e39-4a7b-a82c-c418150d8ae5","block_type":"box","text":"Executive compensation","page_number":211,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"1049e572-fd14-45cc-bb76-a1ead4ec97c3","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"459cfb97-72a4-4660-aebe-47fc1d17e3a6","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":211,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"19197657-fcca-41ab-99af-e4bdfd257f03","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"7197f589-197b-4847-a212-2c8df48bca82","block_type":"box","text":"Shareholder proposals","page_number":211,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"6fed7e1b-3339-4381-a0c0-ada0505c7920","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":211,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"5c03cf8c-14de-4bc3-a269-cf59f63c4d47","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":211,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"89409ada-f460-427c-ab9e-e6b287c02d9b","block_type":"box","text":"which companies operate.","page_number":211,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"609bdb03-5d3c-4128-b281-c007a443fd83","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":211,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"381b2af7-f9c8-4eb4-a262-cc0d1aee8509","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":211,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"7ca46334-9811-4275-bfbe-73c382a7d00d","block_type":"box","text":"supports durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":211,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"9b664b4f-6afb-49e3-8b05-a878593e2c0d","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":211,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"e8687294-df80-4440-ba3b-f0c1fd369b89","block_type":"box","text":"4","page_number":211,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"87300fde-c1da-4dae-8da6-a5061296c8b4","block_type":"box","text":"3","page_number":211,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"a7752d14-7083-4d90-90ff-91480d29bd5d","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":211,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"80fe82c0-e4a1-45d7-a765-f5b2d915fcdb","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":211,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"03e1b77c-a0a6-41b4-8b7e-12e61721160f","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":211,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"a4b0955e-8202-49fe-987c-eed3bacd4b75","block_type":"box","text":"4","page_number":211,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"924793f9-12c9-4a75-962e-352fde0a521c","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":211,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"837de6a1-f2d1-4685-9e69-b2c1d1e87c28","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":211,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"d4cc378e-9b80-42d2-8e90-a5488e3e80ef","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":211,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"9ce8100d-8c07-4498-bc80-16958e4040e4","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":211,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"b5bd1cc4-d567-46f1-8c8a-21b9d556b6fc","block_type":"box","text":"guidelines.","page_number":211,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"b39cac9f-ec29-483f-8dbf-9c6dade7097f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bfa6e188-b5f4-498c-bc63-acc56ddf3b3a","block_type":"box","text":"Global Principles | 4","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6541c442-5ee5-4b9f-bc89-126654263bf9","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f44a5303-b3c5-42f6-9c17-e109413e9897","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":212,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"65ea39c1-e56f-4940-9994-183e10381324","block_type":"box","text":"Oversight role of the board","page_number":212,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"5b61db18-5996-47d0-aabf-48afc94aec59","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":212,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"143c9a36-711c-45d7-82b6-c3984716fc6d","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":212,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"bef225ed-dfbd-4ba8-be0d-371051ec6988","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":212,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"89823bad-16f7-456c-83a3-981a13ef7661","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":212,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"bfadd5ac-1a0d-4591-9e53-ee44f96bf131","block_type":"box","text":"long-term financial performance.","page_number":212,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"347baf82-c66f-4814-a768-3c5c7496ce2f","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":212,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"1dc2d896-ccfc-49a0-934e-bf14dba93496","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":212,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"fde63c2e-3018-4870-b4cf-96656ae9fab7","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":212,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"bfd787da-fb61-4afc-8148-fd1fa1c749bf","block_type":"box","text":"the business environment in which a company is operating.","page_number":212,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"d42ff78a-9712-436c-8ebf-53b6da3d7e88","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":212,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"80f27850-995b-46cf-806c-20d5727f2a90","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":212,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"80776811-74ed-4a36-a34f-36b7e2c758a2","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":212,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"67c91c16-2b6f-47f0-8880-4c780fef3626","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":212,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"8c024446-5de8-41af-b4de-4f21230d7c84","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":212,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"f4ba84c9-34ee-4b58-83d2-e643b7e27ada","block_type":"box","text":"mitigating such risks.","page_number":212,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"4ab52636-bdac-4fc0-b24f-35cbea0d925b","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":212,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"10e31d8f-496b-4d2e-b310-15603c411695","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":212,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"8ab8eab7-fa2c-4b49-8ec3-bba1871bd97f","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":212,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"c2fea5d9-96e2-40c7-8b98-87d7e209d28e","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":212,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"f1554ad6-8bfd-4d2c-bbde-13211441a182","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":212,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"e4b93099-e7be-4246-8fb4-08f40ba402eb","block_type":"box","text":"strategy.","page_number":212,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"98ef4aa3-73f5-451b-a484-a5f9a1fdbcb4","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":212,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"bc2c1993-87c3-4edb-aa84-7eba4963c074","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":212,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"b8695962-d5a1-4c68-9386-2d1a5bcdff4b","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":212,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"3ac19ae8-f32f-4875-9239-71bc995a85a1","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":212,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"40081a43-570f-4585-b2e4-62c6c8a102ff","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":212,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"15e07ff0-52a5-48d7-8de2-e817f0c0da79","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":212,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"6d5bfd80-9946-4042-872f-92d900180207","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":212,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"debde0e9-ab3d-4565-8040-2d6af85d7c53","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":212,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"22641a53-71a4-402f-8d72-de6b9e026b82","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":212,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"e42d072e-43e1-4233-9c31-0a525be74047","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":212,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"95605fcb-5b00-47fb-a2b0-910313119c91","block_type":"box","text":"Regular accountability through director elections","page_number":212,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"66749460-c73f-4a6b-8975-27fbd2d47461","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":212,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"07f21936-dc56-4bc0-ab56-126393793c3e","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":212,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"10f60c23-2a0c-4df8-a0f7-8e7da598b37d","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":212,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"0224ee6f-c1f4-4adc-b8be-d147cabd7b22","block_type":"box","text":"5","page_number":212,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"2c1025da-ac89-419a-b819-322e391682dd","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":212,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"df2a46dd-1ea9-48af-b101-dc7a6ec9a3a4","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":212,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"05bd5ee6-90b6-49d1-85ba-d3aa2ea619a1","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":212,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"2a58d379-b8ca-4ccc-8468-c82757903d07","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":212,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"84ffd071-4529-4e29-a29f-844ff5840a79","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":212,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"aa2d0f1a-0275-4b43-843b-9f7466fd0002","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":212,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"a132bf4e-ba65-45a1-bdac-67c8d9c82045","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":212,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"ff25220a-5c82-411d-ac02-0fe2e03d231e","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":212,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"6e482c2f-8e79-4db1-a145-3e96a2c84d5a","block_type":"box","text":"5","page_number":212,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"f585b446-8892-4954-8c76-a1b1fa92945a","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":212,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"c9d90241-7d03-47e2-b76f-86200fb91479","block_type":"box","text":"market regulation or voluntary best practice.","page_number":212,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"5820ca63-87e9-4b70-8956-c92018b4c4be","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a9560d78-1c17-4a01-9630-cb1953c1887c","block_type":"box","text":"Global Principles | 5","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6bc2760e-5904-41f2-8e08-f89e6fedbf5e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2dfc7613-8173-41e0-a7be-3d94b6830c8c","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":213,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"e84c73b5-ebf3-448e-b8b1-d2302a629f07","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":213,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"9e883d52-0014-419a-a8d9-bfd36e278742","block_type":"box","text":"recently.","page_number":213,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"eda1df34-3850-4bc1-87d5-d82634121a5c","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":213,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"b3fb05a9-d610-4d83-b20e-e68cc49eb47d","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":213,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"6c9db349-1bd4-43f6-8447-94c9a7239366","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":213,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"74a1796e-c3c1-4141-9445-015b185dcf15","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":213,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"a06fbf22-e445-4d80-85b3-39b567050379","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":213,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"83e3cbfa-b571-4e48-9acb-adae1a1e1752","block_type":"box","text":"Director independence","page_number":213,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"a396377d-6147-4ead-833e-fed0910c6213","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":213,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"e0cbe7fc-b201-4314-8a99-4a1f05ba336f","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":213,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"82883f5e-f89f-41fa-9a55-89b54de2f4c9","block_type":"box","text":"6","page_number":213,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"4be97df7-fd86-414c-b930-85a697d571ca","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":213,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"f5ec233d-14fd-4f12-bab7-e474f22e6031","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":213,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"422006bd-4579-4ea0-ac3d-45ad42986cb0","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":213,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"7c461858-b0f6-4194-941e-d5424bd3a719","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":213,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"0b16b934-e863-4e2f-a303-03fe43309770","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":213,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"98c7654a-57a5-4011-a5ff-cd9816bb49ac","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"8217ebfb-751e-4091-9209-0526359401d1","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":213,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"dd8a3f39-45ea-4a21-8059-2a7c7bb58e33","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"432b29dd-ded5-4b49-9757-2c827bf05b03","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":213,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"1d80d6f5-9e14-4bc3-ae6d-c1d907f0ef10","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"7a1af7ca-639f-4290-aa8b-9933ff853215","block_type":"box","text":"Interlocking directorates","page_number":213,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"4299c2f9-b2fb-4181-bd58-7762d1663acb","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"8a870566-a411-4cda-8023-422865509c11","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":213,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"81c001c6-5780-4b2f-9160-9370b035cf00","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":213,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"54acdc85-28a5-4c97-be46-085586980f83","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":213,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"6ae82bb0-0f5f-4358-944d-9923272bdc58","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":213,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"22e6359a-9c93-420c-bc71-c7343041ca59","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":213,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"1f256c3c-6d89-455e-a1be-eee747e3c330","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":213,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"12e8d37a-6d85-4b64-8b89-67252c332625","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":213,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"567fedcb-4a70-451e-ada8-214cb478fbf0","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":213,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"74585e52-e396-4b25-ba83-345a29fa7389","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":213,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"b1666382-eca5-4b96-b034-9d8975a98fd3","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":213,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"133b9f82-8e08-4d5b-a3fb-f4235e4abe94","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":213,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"14153cf4-95d6-4ef8-bb41-0bc107d6da1b","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":213,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"c8700e81-600d-4537-a86f-dd3a5f79d343","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":213,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"d5d1af4b-98c8-4844-a4ba-0c26c37b3c54","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":213,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"de243e25-0fb5-4847-b5fd-5aa106f33ae9","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":213,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"167dcaaf-1c61-4ef9-9fdc-44aea2798868","block_type":"box","text":"Sufficient capacity","page_number":213,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"df0eb593-da41-4d08-a335-adb5eb8d9e85","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":213,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"a4317e87-4b6f-4e32-877b-7db3a81e0e71","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":213,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"ca444859-d845-49a4-bd81-2c9f73d4b171","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":213,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"ee120d74-e515-4ac4-a160-18b26f336003","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":213,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"dc5163a7-00d8-4d56-8ce4-47b55c8926ef","block_type":"box","text":"Board composition","page_number":213,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"09d4bd77-50d4-4957-ac08-fddab460957e","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":213,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"c8895dc1-e5ad-4e8f-ba50-350a2970e313","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":213,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"a32eca32-43ee-45c5-a483-0583777b793a","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":213,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"49355052-77c9-4eb9-8d0b-7e02fd7383f8","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":213,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"d00d981e-aa26-4d93-aa7e-6a9139b8e173","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":213,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"59f0d886-17ae-4ca1-8b88-aa74ca1af292","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":213,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"5937c498-54f8-4c82-a9c7-66ffdc1ee724","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":213,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"47815c4a-e146-4746-b246-467acc905ebe","block_type":"box","text":"6","page_number":213,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"e776f831-5b75-4875-a374-f8db228f4796","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":213,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"b36d6020-56b8-40c9-a232-6c2e61d1751e","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":213,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"6b239371-23ab-4d5b-a04f-ba7e6e7ffdab","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"dc173d95-2059-4dd8-8037-566ac9702e74","block_type":"box","text":"Global Principles | 6","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"84949049-cc60-4035-b211-816ba928e27c","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85ecb3d9-95b3-4f64-8c38-d75e1cbd21fd","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":214,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"ea94c5bf-5c0c-4d26-b152-b6fd9c76ca54","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":214,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"b1d3af79-ea94-48a7-b5d9-967558cc6baa","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":214,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"43511fae-1729-4723-9a07-163cbb06aae3","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":214,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"0aa31d69-b060-4193-8b47-ea530fd63518","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":214,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"42ac6b89-3676-4d56-a509-417e3badd0fe","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":214,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"a70c4696-3d18-456f-bf83-325a3423198c","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":214,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"2bd7d8bd-2037-4cd4-ae4f-e870a9788481","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":214,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"a8a89fd9-704a-446d-9b05-e6f496e15fc3","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":214,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"5d3af86b-9d9e-4d62-9bb0-9744ee47bdee","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":214,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"68332ee1-54ed-4178-bc4f-f985f4a2e834","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":214,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"e8e43c58-7021-4398-8454-3a5055f5beb3","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":214,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"7788b8e0-3508-4f85-a59a-43d86c53654b","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":214,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"66a56502-b75a-4152-9b73-26425183cd8b","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":214,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"5bc83051-cdfd-4b5a-a3e5-3c27d62ecc77","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":214,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"2af8d1a0-43f5-4b3d-a50e-b365ae56dd42","block_type":"box","text":"systems.","page_number":214,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"158a7e4c-0653-48c6-931d-939b8e57487d","block_type":"box","text":"7","page_number":214,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"d9694b47-ab5f-405d-b65b-f7b91ea0983f","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":214,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"2889647c-f5ac-4aee-9dea-21c15d85bed2","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":214,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"9461c93a-d380-4db1-86e9-8c8bdf7eeac6","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":214,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"2e2bf7b3-6b83-4ac6-8297-6f2a8300b475","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":214,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"4c19b6b0-e4fd-4740-99f9-2fd6e0368baa","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":214,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"eba6bd80-eb87-41aa-a450-5df047de778a","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":214,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"0aa58842-ef96-4b60-97de-b7c7d50e091e","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":214,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"163032bc-75f8-467d-a179-36a501987a65","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":214,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"133c22fd-ca5e-4798-a937-3ba22fc16f4c","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":214,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"5673b3e2-597f-429f-95ac-7b0fa5fdc8f3","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":214,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"d4c67043-466e-40c9-986f-7ee9260cc340","block_type":"box","text":"or internal audit function.","page_number":214,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"7c60df10-e930-405b-af37-4119f2c17d85","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":214,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"59390c1c-c4a2-4e3e-bdff-07be0d1c5fc5","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":214,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"036a76fa-fa14-46db-aee3-37d0b6fc9540","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":214,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"e7246c2d-9b9e-4582-b77f-f5143215e55c","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":214,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"08a28df2-9d83-4caa-a5de-38373f75c142","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":214,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"0b2f11e6-b5cb-4681-9801-9988380e871d","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":214,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"81f301f6-a93a-4ccb-9f96-0988496d15a5","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":214,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"b7042726-d739-4192-a484-fc91cbbf2d1f","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":214,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"27a74256-4af2-4e85-a210-2c71b79c0126","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":214,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"1ca1c494-a6a4-4868-a5ba-e234a5031b8d","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":214,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"fd59c34f-5377-4ef2-8151-7c7a39a5c992","block_type":"box","text":"risk.","page_number":214,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"67f486a8-0d9a-4224-b534-0ac8d9ee3d8a","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":214,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"41da8d40-e282-44b4-9190-efed5da6af48","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":214,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"52981e7f-e24e-47a2-8bf0-01dc933c3601","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":214,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"d88c4d33-10a8-40b4-82bc-4cb0baf50d42","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":214,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"e7dad15b-b3b0-40c4-a841-6ae66e3c8305","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":214,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"05b1b55c-96dd-4f3a-a627-69144386384e","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":214,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"06967070-7134-47b5-9df4-9534b2470e23","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":214,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"cb558c3d-5729-4728-86c5-a43effdf17af","block_type":"box","text":"7","page_number":214,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"46144ce6-3161-4e4c-9f15-a48732a5d666","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":214,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"87a1dd92-c109-45ac-b4cb-0848bb24feac","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":214,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"ddd84bf1-f87b-4c48-b4f3-1dc72d6232f2","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":214,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"fdc2a70f-00b3-4958-8b55-393a1b2ead9a","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":214,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"9423f1db-eb42-43aa-9e95-5770cbdd8134","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":214,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"ce5dd207-b38f-44dd-bd86-d46ba8fb780f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f8ec34bf-9fc8-4c74-afb7-a6c83c58a7f4","block_type":"box","text":"Global Principles | 7","page_number":214,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"d1c71fd4-de41-48ae-9f75-375b7f616d07","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1b4bd39-9e4d-4f7b-bbca-8f147d9f1a8b","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":215,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"c6ad9fe8-0e52-40de-9058-3029e6f34fef","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":215,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"367ae4b9-f93e-4b57-ad60-c852d338abf1","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":215,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"0cf6c22c-e0ed-49d8-8080-a05ad8f3b899","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":215,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"17c09d8e-03e6-4f4e-a955-e305810948f0","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":215,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"060994c3-3706-448d-b457-98628571ef3b","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":215,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"0ae7700e-25a5-4393-a16b-6bcd74dc295e","block_type":"box","text":"minimizing costs to shareholders.","page_number":215,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"75096269-0691-43f7-827e-e781cea055d0","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":215,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"b990d955-b3ff-4ce0-8753-168ee0226940","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":215,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"253193e0-3015-4c0a-af70-4008e77bec8f","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":215,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"bcc1f238-bead-49e6-99c4-749c6715b65e","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":215,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"4bde2580-4a71-4db5-9d2c-d09d78e6fa44","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":215,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"5894f9da-832c-48e4-8406-e8c08f6dfdf1","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":215,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"f370584a-a4d3-45e7-83b4-5d64b65ba67d","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":215,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"2c349781-8b47-40af-bcbb-9c7f687f2e19","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":215,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"b9f44819-06c4-4931-a19d-208ed9e388d3","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":215,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"0a50a088-c571-4fd7-b320-372c13a7924e","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":215,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"82e629b6-2e4f-42ed-953a-fba02492d5bf","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":215,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"45249bfb-7c93-4a3b-8769-2df03d4df1d6","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":215,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"d3cb9c7f-4261-4b93-97b4-7fc777e2be7e","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":215,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"e03c92d8-123f-4f20-966b-41568c7691f4","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":215,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"845c2c70-a0de-46e6-90f1-dcd80f3b9fdd","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":215,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"6e82e9ec-4d84-43c7-8ad2-809d2cf361c5","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":215,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"0a167113-0e74-49c2-bbb7-18ba553cb677","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":215,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"f4c5039f-ffe2-4aac-b222-734ed2eb549c","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":215,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"7ad4a41a-bf89-476c-bcf0-405ffade4558","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":215,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"cf131cdc-4877-40ec-b6bd-df0f67726b92","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":215,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"6f50524e-0f76-4a88-a8a8-6db3628327f5","block_type":"box","text":"ownership.","page_number":215,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"a99a0ba6-8f9e-4931-acc1-a71dae1ef426","block_type":"box","text":"8","page_number":215,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"3473b603-6f66-4bc2-b5a0-132f36bcc331","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":215,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"c517ab37-bfd1-4f81-aeda-4a943441f4eb","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":215,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"a5902be6-b487-4b52-afcd-f00d1ee8ec50","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":215,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"42c20ebb-db26-4e70-a1c5-0094f5e3e8d9","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":215,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"04696478-956d-41c0-945a-f24842e89e00","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":215,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"d440c772-7e60-447c-a2b4-2e6ad3d602a9","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":215,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"609c8314-241b-49a2-9844-be34e0c1985e","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":215,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"28e9e35e-2f7f-4cc1-a8fc-6c3525d8fb76","block_type":"box","text":"results over a period of years.","page_number":215,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"1564b182-b085-4b16-ad02-21fe7240e6b0","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":215,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"89537d36-263c-4417-9cd2-743500c43659","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":215,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"8a5a9661-9371-43a4-aecc-0da7043a61a8","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":215,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"8df8c507-096b-437c-823f-a432fd77c87e","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":215,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"885585f7-9836-4120-863f-178a2197188c","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":215,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"a47597ef-a59a-4356-a6d9-85029c6f99d4","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":215,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"84f2bd86-c080-4432-9b0c-8fe6d2272a32","block_type":"box","text":"executive compensation strategies.","page_number":215,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"abf51244-fdd8-4bae-929d-7ec752deb39a","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":215,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"875f134e-8c09-4656-b4f4-55b3d6a1cb54","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":215,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"d132a4c9-c64d-495d-856d-f0cab597fecb","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":215,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"e23ac939-9d70-45d3-b80a-0f4419ab1587","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":215,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"aacd20eb-5d4d-4aba-b7aa-a860780d57ca","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":215,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"053fdfa0-46d4-4bb0-8332-03334c6a0895","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":215,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"7b3d8156-543a-49f8-b959-e3c199e59ecd","block_type":"box","text":"8","page_number":215,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"dc575657-e711-486d-a9ce-68fac1c6920e","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":215,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"6c47b98b-d69a-4920-912e-ce6b286e7625","block_type":"box","text":"different markets.","page_number":215,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"0fd0efb4-c9a5-4a68-8e9e-bcb0a9cd559f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f37b1d6b-0f91-46c3-8179-c673e587cc57","block_type":"box","text":"Global Principles | 8","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4a80cc94-93b1-4aec-bfea-65545542772a","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"661a81ed-c232-404d-87f3-f6ec054365b6","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":216,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"55ec63db-185c-4ee2-a418-294c680770a1","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":216,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"d2edfc30-0f46-441d-a892-35030208ae45","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":216,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"42962825-d8d6-4a07-a546-7249fa340f1a","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":216,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"478870a1-0518-4589-a9d2-25f19ac69fa4","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":216,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"1d6713d2-5a26-4c5d-b01a-d266890bd1c1","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":216,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"56d6a13b-d36c-477f-bf22-b79f9ebff680","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":216,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"2a99614f-81c7-40bb-a194-3c834564a413","block_type":"box","text":"whom they are charged with overseeing.","page_number":216,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"95ba72d2-d8e9-4a47-8b40-221a2a1fb160","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":216,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"559628b9-b261-4b27-bfc1-c7c9cd5a11a2","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":216,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"8ac8146f-3e4d-4dee-aa5c-d7d804906e25","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":216,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"3c8b1650-45ec-4bd8-adbe-b57c61ad2cbe","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":216,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"d1e0f742-cd8e-41f2-95e1-5bfbff458b60","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":216,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"cb9eb35d-7a64-4daf-802f-d37b75c91b48","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":216,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"318f1006-df17-4fc7-b1e9-77d452e2da11","block_type":"box","text":"structures.","page_number":216,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"667e184f-c503-4d0b-8617-2d1a0c5f1917","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":216,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"9a71d369-c5d1-4f82-b405-2ad98cc5cde8","block_type":"box","text":"Corporate form","page_number":216,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"8c5b4f44-a98e-4f47-9fb7-56860780f6e1","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":216,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"ca82cd46-8f8a-4c41-9b63-e7c5ea84efc3","block_type":"box","text":"the company’s purpose and business model.","page_number":216,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"6248fe8c-c322-451a-99ec-f55316cb32f2","block_type":"box","text":"9","page_number":216,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"205d1ece-285b-44bb-9a91-256a6a98bddc","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":216,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"15ffcbe2-b753-4c05-b673-662281286ed6","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":216,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"6dd218a1-5810-4f11-aa61-a34ca727fb11","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":216,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"6f5ce731-38e8-4868-ae2f-48783403ca31","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":216,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"4a9337fb-bca6-4dcc-8baa-487fbfd33afe","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":216,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"9c587fb1-5e92-4e4d-bb42-f13863220600","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":216,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"3c626587-28ff-417c-80ed-8dafa9808bd8","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":216,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"7b34191d-c737-497d-b679-1a2091cc7bdb","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":216,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"c07b796a-c1d0-4c9a-9c65-8c533946c091","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":216,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"48038ed5-3f5b-47eb-894e-2cc629a8d762","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":216,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"024eaa15-0d76-4e2c-ac75-d12ea9cdc29a","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":216,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"4a37e61d-86cd-4970-853e-8017539bb9a8","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":216,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"9beb3255-9caf-45bb-a335-51218b0a9dc6","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":216,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"da97bfbf-659d-470e-a244-ec9b2816a41c","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":216,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"b20436e5-e32a-4605-8327-000c12e4c5ac","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":216,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"4aecba50-cd08-4b99-933b-d89c043f775a","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":216,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"a25b7186-f94c-4ac3-9f04-f428a7ebc85e","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":216,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"69c6d7d8-6124-42e5-8cde-fbf890189b9c","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":216,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"ce545a6e-84d2-4783-9cfa-cf144c9958f7","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":216,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"ad62233f-33c2-49b6-beb4-f020c8a81218","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":216,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"0acd8d8c-8ecd-486f-8350-a66ea0e480fe","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":216,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"9a299939-f209-4e6e-bf03-3b9cf48c9667","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":216,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"27236abe-f274-4a3d-8e3f-65f80cce48f1","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":216,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"09aaa73a-9b96-42b7-91f9-27bb41af0b8f","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":216,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"fc5d39de-68d7-4ae8-b78a-69fd8cabe44b","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":216,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"a1df76ce-9df4-4593-b297-b71a35abebcd","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":216,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"b550d6f0-a622-4761-aac5-b0363b6a3783","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":216,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"31bb6c24-7dcd-44bf-8317-76d423ab11e0","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":216,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"7cba3736-6057-4518-8b73-615ef1034c59","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":216,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"0c3eca69-38a9-4bb1-884a-35a89f9d0a6f","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":216,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"bd09e196-aaf7-404c-acb1-d4a64661d818","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":216,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"1b8dee72-b00f-4632-a55e-29099f912738","block_type":"box","text":"9","page_number":216,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"2fa913d5-987a-4937-b8ca-ae893c7200b0","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":216,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"e097fe00-aa14-4a27-b2d7-387671077bcb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f61ae604-824b-4cfc-abfb-fa051b6a4e06","block_type":"box","text":"Global Principles | 9","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4c110ab1-19a7-4f31-81a3-812302c0c1db","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c8a8c4ff-3929-4127-9a52-84d7bc6ca1ea","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":217,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"27269527-06de-4108-87a1-6888d328c382","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":217,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"e5181fd0-14d0-4f43-889c-2f74e2be11ab","block_type":"box","text":"long-term financial interests.","page_number":217,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"1bc1129d-b335-4b98-82cf-6e2feb19e5d2","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":217,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"9842fe74-31b6-4b33-a1e9-f596c7d84062","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":217,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"31495dab-9f91-469e-9c1a-87444c04a08f","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":217,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"109aef43-f8b9-4a79-b67b-8a520336d693","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":217,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"adc513b9-1bbd-436f-8ca6-863f19ca67c0","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":217,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"f5476525-e000-4412-9fbe-41d736d64e84","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":217,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"a17dc116-bfee-4b6e-8813-2c84a48ed406","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":217,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"34a1db83-f2bf-4ff9-a2b1-e664a4538d68","block_type":"box","text":"term financial value creation.","page_number":217,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"229e3791-b7a9-43f8-94ea-7b32873e0757","block_type":"box","text":"10","page_number":217,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"a04d5f54-2820-4890-b2cf-61367ef84a9b","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":217,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"8fe60d0c-100c-423b-bfc1-64301ec4af77","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":217,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"a36bd5af-44d3-4244-ad06-b218a5122303","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":217,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"d27478b8-026a-4819-a50a-107a525fcc21","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":217,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"5270e166-e9bc-48df-88b3-4f9d3f8ab7c5","block_type":"box","text":"industry-specific metrics.","page_number":217,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"6168c406-2f95-4900-8f72-efddbf04c8e7","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":217,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"d6e109da-1f54-44dd-bd46-9fcd724bce76","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":217,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"2d08c5c4-b101-458e-a9ba-66da3abfe3d7","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":217,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"61e9ae9e-55f4-488d-beb9-050ef779e4cf","block_type":"box","text":"11","page_number":217,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"7c780b6c-56ff-44d2-8679-0f668cb1249f","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":217,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"19874d60-469b-4f58-9915-09fd090b974a","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":217,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"201c1417-1750-4b42-96ae-3c2ab2cf666c","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":217,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"be344a04-7ad7-40d6-8671-9f251fd98251","block_type":"box","text":"specific.","page_number":217,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"7267b14f-169c-49c4-93a1-048c515a4d0f","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":217,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"74a45fee-1d47-4a43-a06b-fc4ed1acf37e","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":217,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"19df543f-bf0e-4a4e-bf30-f01a37664274","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":217,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"9bc9856c-08e3-4cc8-92bc-3329784d3b2e","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":217,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"5f9f3433-99a6-46f4-90c8-5aa42fcedf94","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":217,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"da74844f-f2b3-44f0-9166-d220ce43fb22","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":217,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"024777c1-245a-4851-8d48-c1db485bdc1c","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":217,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"0464126b-ade4-4c01-aadb-c7941acc93e7","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":217,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"7a1240ad-9919-4672-b6c9-fbe72a1f01a1","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":217,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"9ff7e993-c6c2-4ca7-95ef-1e52bb9f1569","block_type":"box","text":"10","page_number":217,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"b868e908-2479-4381-b85d-be6350d41da7","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":217,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"2051e298-734a-4891-a0f9-ee2cb70caa7f","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. 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The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":217,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"db2340c3-b044-4f48-b351-3267a0cc8533","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":217,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"546b4de5-aa19-4f4d-9431-655129db1ea0","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":217,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"e41ec10d-01fa-4f5d-8e1c-5d09e04745a1","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":217,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"e0b4cb40-6cc5-4e58-9c08-8ee947329296","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":217,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"d762ef04-96e4-43cc-b165-f2403d43c443","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"da06d898-4ce4-490b-aaa5-8fc99a2166a8","block_type":"box","text":"Global Principles | 10","page_number":217,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"7150b8d2-3cef-4987-9064-6ac1f0e74e79","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b297207-7017-441c-89cf-24b85787bb52","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":218,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"e28475c7-36f7-473d-b189-d38d848dc831","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":218,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"26b3ac79-7a6a-4d4e-be51-4e90579f8152","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":218,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"c72702d7-4f81-4ce0-ab9f-96edd28f1892","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":218,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"ed595a0c-49d5-4b39-af22-319edb93f3c5","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":218,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"9a2bf4e5-b6a6-4bf6-b241-71f6b96aa031","block_type":"box","text":"12, 13","page_number":218,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"f4294672-1744-476b-87db-e23c28eb7243","block_type":"box","text":"From company disclosures and","page_number":218,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"ba28ea77-550f-41b0-8502-cc6b668a43c9","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":218,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"7eb22143-3c12-4277-9490-04a58290713b","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":218,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"48e4c030-fda0-46fc-b24b-64dd1c12aa6e","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":218,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"92dc9643-48ec-4f91-920a-35144e6de55b","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":218,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"538fa7d8-8234-4580-8dc1-f508860895d5","block_type":"box","text":"viewed as best practice in the market.","page_number":218,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"1ea48287-3af9-47bf-b6fa-f8ae4c472a36","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":218,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"1286b33b-791a-44c1-abb2-dfc94a54ee6f","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":218,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"a64b0b63-9ee6-4931-bc9f-de00f9a071da","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":218,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"37eeaa4b-fd87-42ff-a86f-006d4e6fcb5c","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":218,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"2a72e419-71c2-474c-b0ae-126eb84a4ea2","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":218,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"abac9b43-68e1-45b3-ba20-bc90e3d04523","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":218,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"3ae03893-2fb0-423f-b7f3-6e017fd6dc39","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":218,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"eb96cf31-9d6c-4daa-a305-dbb1e5533945","block_type":"box","text":"interests of their investors.","page_number":218,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"24881b7a-776a-4630-911d-a70432ff2e0b","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":218,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"f275186f-bea9-4233-a1e7-5ce52625ff0e","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":218,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"e2821572-b128-4c64-b6fd-cb5932b7efbe","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":218,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"f811eecb-e06b-4d3e-b0d1-879869e60e15","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":218,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"d6d49b9c-0ff4-420a-9a07-4cf3fc6994ea","block_type":"box","text":"good-faith basis as methodology develops.","page_number":218,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"f35a9e7f-c137-4851-bbc5-f52dc841d11b","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":218,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"44a1621e-14b5-45b4-9d5f-6f9c91a771cf","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":218,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"5e5f4b37-6d6b-471a-8f4f-7d31fd761c71","block_type":"box","text":"generate long-term financial returns.","page_number":218,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"65e2091d-cf3e-4d82-a401-8e0ba2365a37","block_type":"box","text":"14","page_number":218,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"caab5264-c19a-4435-aa68-b004bd21e887","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":218,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"e4d03482-49f4-406e-b7d0-2c9ff0e33340","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":218,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"647cb718-81ad-4f4a-b3f9-03f758c4be2c","block_type":"box","text":"15","page_number":218,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"9dfec0ea-9ba2-43a4-bf69-cea85bf2bf95","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":218,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"1e289e1f-fb4f-4407-8808-c2759d750de9","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":218,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"3b935ca4-0817-4d1d-9a14-1af354c5d8f6","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":218,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"ec1c1812-cfe2-4153-ac09-0ddf4479b8b3","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":218,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"49fa466b-a8d4-482b-8d92-a302505fc112","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":218,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"3dabcfce-ccf8-484f-a231-085aabbc6c67","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":218,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"248ffb90-63fa-4714-ad73-b17d2a2ee601","block_type":"box","text":"12","page_number":218,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"cc58d370-1b9d-4638-8141-62d51e26b549","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":218,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"5557a3b3-db42-48ba-adf4-f0011844db29","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":218,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"338d9051-54a9-465d-b722-833ba483dbed","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":218,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"37dbdea3-8a8b-47b9-b4b5-b5a8ad20b400","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":218,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"ce61745f-13f6-4b60-bf50-62ffc8346473","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":218,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"098eb117-d330-4878-8a4a-e0d78a59e071","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":218,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"72d1ff0f-06cb-4743-affb-296d82e71947","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":218,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"b19993d9-1d4b-4445-8074-79a5de2436df","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":218,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"62ea5d61-d54d-4edf-8d2e-bfe4136a9abc","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":218,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"8a9293b6-ecef-4a1a-a78b-3d4aa3e40f67","block_type":"box","text":"13","page_number":218,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"21e814d6-be17-4898-81e1-7116d26b7297","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":218,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"37ba76bf-c5dd-485e-8756-a9be089eb58e","block_type":"box","text":"2025.","page_number":218,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"27815579-7bc9-490a-8c47-df0a599f1c9b","block_type":"box","text":"14","page_number":218,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"8784f9fc-ae1c-4d3b-bdce-ed29b2469336","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":218,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"80cd335a-adea-48a0-a8e7-3faa296da702","block_type":"box","text":"2025.","page_number":218,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"a0b6ac3a-ff1a-4da3-b247-e5abb304c6f8","block_type":"box","text":"15","page_number":218,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"ee433e4b-254e-4908-9733-9aef90bcb820","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":218,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"17af9909-1d28-414b-aa73-dcc27eec43ca","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":218,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"9145bf21-9674-43a0-bc78-bb290ef96463","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":218,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"33f859da-bf7d-49cc-aff2-ed8801b14993","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":218,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"d298542a-c531-4b81-9d9f-67db76a6f2b2","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":218,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"23688950-9069-479a-97cf-53614d40566a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1071b277-8d09-4394-a503-b7e6ae7099d6","block_type":"box","text":"Global Principles | 11","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"a3993a5b-d46c-437c-8bf0-1d48bc72c2d4","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da1777b0-6c34-44fb-8968-7610e5933146","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":219,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"2ddc0125-8e3f-41a8-864a-596d8b9d087c","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":219,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"1c36940f-f938-4199-8f93-5e40d5344d99","block_type":"box","text":"16","page_number":219,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"46c5c8bb-2a62-4b1a-8bd9-44d9872c96f2","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":219,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"bac55dd7-8e5d-45d0-860d-8393516ff1b8","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":219,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"1f479dab-b6bf-4ef0-b543-5f43a927c2f7","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":219,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"3114a70f-73b7-4aa8-844f-815c05b7808b","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":219,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"1523c69d-cd55-4978-a02f-d2c1b933c941","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":219,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"0f2496ca-ab02-43ad-8d69-179b956cebd5","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":219,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"5e7a7e23-d68d-40fd-941e-bf6d72b83ca4","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":219,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"10233035-0fa4-4707-8ff4-d5d404c206d8","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":219,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"92673441-ab32-4131-94d4-95a18ab26e5e","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":219,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"941ddece-aa75-43b9-865d-03e3625b0fff","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":219,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"8afda3d8-b17b-4d5b-a0f8-4bfdf107389f","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":219,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"05b5d5b9-036f-48af-aebe-c1a1abd3a607","block_type":"box","text":"impacts.","page_number":219,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"a9a8b49b-53e0-46b2-9676-4681f57ad9d9","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":219,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"da924750-5784-4e80-b2ea-cf0ea31b3172","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":219,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"3a3105fa-98b8-4889-b5d9-0d0344f93828","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":219,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"11685e13-e5d0-46fd-8bb7-57cc1be93c53","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":219,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"34e670f2-1788-4674-bf4d-81d417fb8343","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":219,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"26790bbd-4142-468a-ba7f-15d7deaa6be2","block_type":"box","text":"clients at the global and regional level.","page_number":219,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"4ff6cbdb-a213-46d8-afeb-21ca6642fadc","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":219,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"dc0cbdc4-fd16-4a84-9725-1bf923f4595e","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":219,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"3929d2ab-5771-4277-b674-2dcd0914d780","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":219,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"c003904f-435a-4ebc-9156-64836035197e","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":219,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"45e1b20e-e0d6-4034-9475-22724f05d865","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":219,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"9f395172-a55a-4fb1-8dce-c1f1a2338680","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":219,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"6fe3a65f-496d-46ae-9d0d-4cfc09943b5f","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":219,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"169a03da-8499-4222-99be-12b05c0e5a1b","block_type":"box","text":"are independent from the investment stewardship function.","page_number":219,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"00532c90-b033-4af2-b4b2-8be332a7b919","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":219,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"932db1d4-eb19-45f6-9794-d1572ab3af5b","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":219,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"16160521-3df9-4596-a643-34ef99df26c0","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":219,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"b21d4b7f-bf15-426e-a6e1-fab7155cd13c","block_type":"box","text":"VOTE EXECUTION","page_number":219,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"6847ba73-6934-4b22-9edb-05ff163e3ca1","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":219,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"70cd4633-f934-4f4e-9cb3-02cd98272b1f","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":219,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"e3dd0bc1-e6c2-4a55-8c09-6a5014d826eb","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":219,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"79fe0dd8-1e44-49a1-b2e1-c65bb10402a1","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":219,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"ad5a5e95-ef2b-4afb-b07d-655dcbf79bc1","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":219,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"5fc97078-f5be-40d4-9417-f4f810b2d53e","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":219,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"a8cd63e8-bd6d-43b2-b45e-91533653ae12","block_type":"box","text":"management policies and procedures,” below).","page_number":219,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"5710901d-9613-48bb-95e1-9db88d2c5860","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":219,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"f75664c0-78a4-480f-a4b5-ccf7dbf636a0","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":219,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"3e4ef06e-f217-4b6f-aaca-64a3ebccd8ed","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":219,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"109ecfbb-7947-48c8-b97a-2ed74ee32823","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":219,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"ebcfc764-28aa-432d-bc0e-b922c72a4811","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":219,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"cc67a752-a1a5-4c1f-a3e0-e05966852003","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":219,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"895a64c1-8dbb-4912-8bf5-41251068b47e","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":219,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"47a934ea-54cf-4557-9e4a-1da8909dc051","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":219,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"bff61fea-8892-4c56-8820-7309b452fbe8","block_type":"box","text":"16","page_number":219,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"34687bb6-dfe4-4552-b758-9756dd083672","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":219,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"1db478dd-4c3f-44a3-b46d-893618bfa9e2","block_type":"box","text":"December 2025.","page_number":219,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"594b5a5f-901e-446f-8129-1e1247e6924d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bed40d0f-5542-4e98-98ff-65f1b3cf3cd7","block_type":"box","text":"Global Principles | 12","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"1f95d45c-5394-416b-9fe3-f0a805cc6260","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99bdbe43-25d8-476f-b4f5-1716d6ce56ee","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":220,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"ecb03ebc-26fc-474d-b6ea-fda4c89cb5fc","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":220,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"91b6d220-1359-4438-88f9-a96bb7c53350","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":220,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"525f3056-8f9b-4885-9073-27f04c653ce9","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":220,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"1f4ca792-e571-4c4d-b068-0fa1325aa519","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":220,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"89a75c57-06cb-4cc2-a811-7a68523f1812","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":220,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"dc737f62-1f7b-4bf3-ab01-6b8d331a0f23","block_type":"box","text":"enterprise-level vendor management activities.","page_number":220,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"5a8d5335-83cb-46f3-9d14-720289c34bd7","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":220,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"3f6953dc-917e-411b-a790-3f8889516b53","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":220,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"96f8629d-2a2d-49c3-a788-a519aa761d6f","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":220,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"43ce5345-9cb5-4a6f-9305-936d883a5da8","block_type":"box","text":"BlackRock employees.","page_number":220,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"54e62e92-3582-41a5-8656-723be0b1e17e","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":220,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"59114649-3606-4d9e-93e8-c95984de5b83","block_type":"box","text":"SECURITIES LENDING","page_number":220,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"848e737a-da34-4aec-8d1f-f55d20ec6529","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":220,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"feccfb6e-a84d-4a55-8967-fca3be68d79a","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":220,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"766edd67-c9e6-4e43-8b48-69fcda0569e9","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":220,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"416e5f64-b89b-4690-a117-12a43c521ca9","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":220,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"58bd5752-3985-42e2-a2c3-a195da678916","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":220,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"02c537dd-ec9b-4923-9db9-07b3984aabab","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":220,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"8301a7d1-269e-4e7e-8caa-851d4887d403","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":220,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"e26ff490-b78d-4665-a0d3-44cb069d188b","block_type":"box","text":"in helping them achieve their investment goals. 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We inform clients about","page_number":221,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"4b2ec8c7-530f-4146-a5f8-0d7f72f7d6ab","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":221,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"8c2bf1b9-44af-42cf-9939-97d091a68fa7","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":221,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"4c2256e8-8375-4058-809d-ad1971e3ad68","block_type":"box","text":"invest on their behalf. 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All other trademarks are those of their respective owners.","page_number":222,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"823214d9-ebb4-475d-a937-d0bd08fdb376","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c96a0261-36bb-4f16-b97b-1b2d820bcf7e","block_type":"box","text":"Global Principles | 15","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"6be29410-9cdc-4ff1-af7a-3b9b12b62a6e","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e12c777d-d099-42e8-bc57-d7c79aebb9d2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"0e4be822-c3f8-42e4-9392-ea71f3e3fe6a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":223,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"2a45d162-d130-451f-9fc5-b018dbe5adbb","block_type":"box","text":"Effective as of January 2026","page_number":223,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"79bb99dd-a02b-4fda-a9ee-8b7b2fc89208","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bf798ad7-8296-4bc2-8df8-497d79f78315","block_type":"box","text":"Contents","page_number":224,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"28f5c23f-4f54-4fc6-bbdc-6dd5256d6931","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":224,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"8fb7ddaa-5aba-460f-85f8-c538566d588b","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":224,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"76954aed-5754-41c4-9457-19cb8e49c52f","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":224,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"74dd277b-bb1e-40e4-9386-db3b2d6d0234","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":224,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"359a6fc5-181a-45ae-8b87-ef569e6619dd","block_type":"box","text":"The Guidelines’ design principles","page_number":224,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"9dae028a-207a-4684-9913-c6b98fcb7f01","block_type":"box","text":"4","page_number":224,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"52344bbc-14d2-48c3-afbd-190e455f0af3","block_type":"box","text":"Voting approach under the Guidelines","page_number":224,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"9c8cedad-e458-4b54-a6e6-846bac8c4c14","block_type":"box","text":"5","page_number":224,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"c9b7fcc2-2bf5-40db-b731-35f58a2832f3","block_type":"box","text":"Related matters","page_number":224,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"b2b66218-a8b6-48ed-ab14-3878f362d69c","block_type":"box","text":"8","page_number":224,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"30c00d11-ef69-44f2-a34e-cdc529143ffc","block_type":"box","text":"Appendix 1","page_number":224,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"ee8bfa3a-fa44-4cb4-bf81-b58882602b57","block_type":"box","text":"10","page_number":224,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"d1752f16-3a18-4637-ac83-20e0cd130e93","block_type":"box","text":"Appendix 2","page_number":224,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"5c805d3a-eb45-4a04-b7ee-90a279719785","block_type":"box","text":"11","page_number":224,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"b04f4432-bbd6-458b-9dc9-70c7408d7bb1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7b053b12-60c0-4b77-8530-6200da836567","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":224,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"568cefc4-b988-4550-80dd-4da964a2617a","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32b84eed-5326-40fd-a14f-037883c2c9b7","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":225,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"4037bf70-0b2b-488b-9823-10ecbc7af478","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":225,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"8ffb1912-6a68-45e6-a0cc-275229843c2c","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. 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Under the Guidelines, the dedicated team","page_number":227,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"25b9f4b4-8170-4118-a515-b87a37ce35a8","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":227,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"84370e67-b155-40dd-8a38-cf715fb3c439","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":227,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"5c4d71d5-e600-4060-ac91-1e47bd64099d","block_type":"box","text":"Voting approach under the Guidelines","page_number":227,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"37d6e920-ee1f-4704-8a22-796b76262ab2","block_type":"box","text":"12","page_number":227,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"100979e7-ae4a-4b1f-9876-e5606cab3c01","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":227,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"c1ff9353-ff38-475e-b94e-f8917086d2ff","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":227,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"63965e54-6345-46a5-8748-db3484eb76e6","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":227,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"2a7ff243-edda-4618-8e56-44654644aa08","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":227,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"c641f8d8-20b4-4146-b55e-1a3a504b7b04","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":227,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"18b9d3ba-c01f-4fdb-868b-e9d81cba9fe9","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":227,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"a4dd323b-7347-4ed3-bb12-ca5b6cb94545","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":227,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"c24ecd0d-817f-4019-8266-b7fa0e6d85e8","block_type":"box","text":"Corporate Disclosures","page_number":227,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"5a33e15c-e236-4580-a337-f0c60195af58","block_type":"box","text":"13","page_number":227,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"81888f04-edd9-4bc8-859f-99622c1113bd","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":227,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"08dfe7b6-bbd3-4de7-a9a6-47ed012f8fc2","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":227,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"6108ba18-e8cd-47bc-a405-eaba818000e1","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":227,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"c7330a8f-646c-4e15-bbb8-0333db18b3db","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":227,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"bcca7cc3-9acb-4059-bb17-adbd9500f357","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":227,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"acabfc65-373a-4a99-bba8-c8617ee38e2e","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":227,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"3b5c3832-065e-47e5-bdf1-6fa48abf15ff","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":227,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"a84a9df4-f997-40d5-9f09-4681ed4f8ea0","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":227,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"52ae7290-6fc6-4b8d-bd67-b0ff607a297f","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":227,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"f2c68051-8365-4238-bf49-ffdd1d5f26d6","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":227,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"434f1145-5de0-484e-8d86-bfcdedba59b3","block_type":"box","text":"14, 15","page_number":227,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"c0489d7f-9c87-4d98-ae5e-bbe3555af408","block_type":"box","text":"IFRS","page_number":227,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"85776f9f-e64e-43fb-9b87-6a0821a6db9e","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":227,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"6ccb51c8-b689-470a-a6f6-ebb2d31709ac","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":227,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"bb83a55a-6637-4978-bc10-14214c064da3","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":227,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"a8c839b2-2a9a-44c2-ba86-5561e39ec75f","block_type":"box","text":"and assurance standards are developed.","page_number":227,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"14209217-17e2-4577-932f-9577135d7fb8","block_type":"box","text":"12","page_number":227,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"c9d54c80-7199-48c1-a237-661f57d4bd5b","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":227,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"99f515a5-de3d-4a14-824d-06026713e80c","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":227,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"3e8a550d-053a-4160-904e-80f90c6ecdb9","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":227,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"6fb3ee6b-818b-40ec-9030-63215b41ca0f","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":227,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"bf9baab7-e3c2-4782-9793-ffecae069889","block_type":"box","text":"13","page_number":227,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"9072216e-969a-4463-83dc-3363ba12989f","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":227,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"427cd9c5-8209-435b-8270-cf3adb6609b3","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":227,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"07432778-51d2-41c5-87f3-6ffc51f292d6","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":227,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"c03853ec-5925-48ec-837d-4abe4f793509","block_type":"box","text":"14","page_number":227,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"81ce39db-e7b8-4485-b64a-44dfe79478e9","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":227,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"665ec2e6-03a9-4724-bd03-e197677d41e6","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":227,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"418bf0bb-14c6-4ba0-9250-7e4c28d5fdaf","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":227,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"d943f4c1-17ef-4e04-8320-6ea9f34be7d5","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":227,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"0969d1c1-e563-4e85-be11-65164f876897","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":227,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"c262cefe-11d1-4b06-90c8-02ed3128de29","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":227,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"8a7b4b00-9c0a-4927-85df-f0d744539303","block_type":"box","text":"15","page_number":227,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"70418a39-8acb-419c-840b-97bb0b41dfd8","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":227,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"dc7f8a05-594d-466e-9ce7-9fc20597bace","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":227,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"42579c3a-f1ad-4afa-bc02-81970367d45b","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":227,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"2951be9c-c38f-4efd-8698-13318c83480c","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":227,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"d51cc99e-99d9-474a-ae65-2fe39379580f","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":227,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"7e03c8d0-c861-421e-8be5-3cf6f0c6dad6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bf59e95c-0357-4690-9e98-e8fa5e12d498","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":227,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"d6fc076f-d2bd-45e7-b5e6-9aebeff4f04d","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"760af5e0-58a4-4e14-948d-f36aa0c35620","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":228,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"f752520c-3d5e-4ec0-9b59-c2425210163c","block_type":"box","text":"16, 17","page_number":228,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"d29a549f-8cc9-4aa5-864d-9340cb8c63aa","block_type":"box","text":"In addition, the dedicated team looks to","page_number":228,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"a272dc56-780a-4baf-8257-0275758e3095","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":228,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"8cb6e5b0-cecc-4eec-ad73-58228bbcf85b","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":228,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"ffd90a28-10e1-49ea-9fcb-c339c220451a","block_type":"box","text":"scope 3 emissions reductions. 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This may include","page_number":228,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"e2223e76-3dad-4ba1-bc42-d687ba9fd23c","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":228,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"1d0bfaa3-7c28-47a5-bb0b-22e713134d27","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":228,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"3d57e853-2c85-4e52-b146-b69f1d647f4f","block_type":"box","text":"transition risks.","page_number":228,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"f15ba412-54a1-4c96-a334-3aa89d706a90","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":228,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"5ddebec8-f058-40b5-bd00-5be6bede7ae9","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":228,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"6c701678-9ee2-45f5-9dc5-250d7ce34168","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":228,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"da1c1b81-1d16-44b9-a002-9fd81fbd9d03","block_type":"box","text":"Transition plans","page_number":228,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"110c6064-979c-487c-b3a8-9a1dc0e9fa7a","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":228,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"39bc57b2-1366-423e-b039-10ffe9e83d15","block_type":"box","text":"transition strategies. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":228,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"81333ec6-9ac6-49b6-a882-4aa3f04503d0","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":228,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"0481f6be-b18d-4fad-a4e7-355ab8d05cb0","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":228,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"0cba383e-e391-4d80-a3e7-8daa6a187554","block_type":"box","text":"18","page_number":228,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"903ac147-cfcd-4a19-a6eb-88bcc05ff7a9","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":228,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"95a7fada-3b04-4615-992d-fcf44e3ada59","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":228,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"8d844984-c232-4738-88c7-fe94ead2baf9","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":228,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"2044a162-9762-4045-bcd0-ac3ceda1bd5a","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":228,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"d869de98-e42f-4fdc-b66b-9191d3c2de18","block_type":"box","text":"material to their business models.","page_number":228,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"0b6834de-e65f-4ee7-8997-ddf348e473c9","block_type":"box","text":"19","page_number":228,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"1368c959-0bb5-4abe-8db6-420c0b56f0b0","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":228,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"b3f5c0bf-0056-44b9-81b7-5ee8662d840a","block_type":"box","text":"December 2025.","page_number":228,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"35da7d9d-e5e8-4365-87cc-10bdadf03b25","block_type":"box","text":"20","page_number":228,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"3343850a-3d28-40b9-8f52-c2f858d220f4","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":228,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"8fcca111-4728-4848-8ffa-192c8427741d","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":228,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"5cf0a516-6217-45ba-9cef-86ec54ac76bd","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":228,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"b75bc770-9720-4b34-be74-b2d2d54c9540","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":228,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"d8c626b4-c4b2-4e6f-928c-c89216672185","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":228,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"3a97e417-8343-4a31-bc62-9b172de04d1b","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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In assessing the role and effectiveness of the board in this regard, the dedicated team seeks to","page_number":229,"box":{"x":68,"y":98,"width":825,"height":11}},{"id":"35217db7-1c98-4e8a-bc85-b2c6d2bad665","block_type":"box","text":"understand whether:","page_number":229,"box":{"x":69,"y":113,"width":145,"height":9}},{"id":"5bf26b84-ac62-4441-a259-8e44142e15c2","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":136,"width":6,"height":4}},{"id":"0dd80e6e-d666-46ea-813b-b91b1c6787c6","block_type":"box","text":"The board has clear oversight responsibilities for climate and low-carbon transition-related risks and","page_number":229,"box":{"x":101,"y":133,"width":711,"height":11}},{"id":"682ace17-efb7-4ccd-ab70-9b29f198a6c9","block_type":"box","text":"opportunities in the company’s business model. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":229,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"d31fec88-d9bd-49c0-9830-bd38e204f283","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":229,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"9905763c-ee78-4c77-aacf-0980497bc5e9","block_type":"box","text":"with the different constituents in their value chain.","page_number":229,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"230ee05a-6e6b-48c7-ad83-e159a99d7581","block_type":"box","text":"21","page_number":229,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"329ea03a-bd22-4edb-aa42-caf1414e09bf","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"2c00fc82-6e92-4129-97b2-4e60f8335812","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":229,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"0743fa29-3a9e-4ef5-8890-41940ec0e365","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":229,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"d58d4202-b5aa-42f0-9093-21aa92b45ae6","block_type":"box","text":"22","page_number":229,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"ef9f12fa-f7f6-4d4a-811c-280dedf6174b","block_type":"box","text":"The dedicated team looks for","page_number":229,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"7210af86-8882-4224-9b89-e51366eefb1a","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":229,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"ac9bdaf3-4d9b-4bcb-8a02-5b8abb712ce3","block_type":"box","text":"related to the low-carbon transition.","page_number":229,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"86423031-c1c0-4857-8e0c-95c70a477aea","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":229,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"4ac41bcd-36d7-4f8a-aa40-943620eef354","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":229,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"70df9386-7a7d-442d-9d60-134eae16e245","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":229,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"b3596ce9-491a-4657-9bf8-5bae96dc0302","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. 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The directors most likely to be in focus are the chair of the board","page_number":229,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"c165b882-4c74-491b-8f6a-d8422e9872e1","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":229,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"d6541d0d-9847-4536-a907-3c8db05a5861","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The Guidelines consider these","page_number":230,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"2d2ec135-9717-4884-8eec-f455b2ae1e36","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":230,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"2235ed4d-720d-49eb-9178-7739bbe644a4","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":230,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"6672e459-899b-4fe8-a812-61c4f5bd47ee","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":230,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"f8911606-ee88-43ea-b094-a66c77f087f4","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":230,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"9aea924b-61a9-480f-aa0d-bdc27dd868c9","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":230,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"87c54daa-31b5-4ac7-8796-7659156c202c","block_type":"box","text":"transition plan and targets.","page_number":230,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"7ab53567-5cdc-4beb-addf-a83a45fdd672","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":230,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"dec41be5-8ab6-4875-944e-54f8b071f23a","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":230,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"acf3c2cb-5d53-4e04-b27d-4d44a16ffe42","block_type":"box","text":"long as certain requirements are met. 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The dedicated team assesses the implications for, and the relevance to, the","page_number":230,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"f0cd21b1-0924-419f-9a72-7a2e3161b2e2","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":230,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"80ac64f0-41f7-4c30-b230-b140a36acc75","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":230,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"4c0bd5af-62fe-4c3c-82bb-c6850df11fde","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"45b52273-bc69-4c5d-ba20-46fa04d1a36d","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":230,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"ebfbe7fd-0b9b-4c82-9045-601f1b1fa120","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":230,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"ab8cbfd3-25df-4de9-ba52-54ac161deb15","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"ed1b60b6-975f-48b5-b261-b24a444d9446","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":230,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"23f434dd-9b25-4d1a-b1a9-4e10b8fd4231","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":230,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"37b42b9a-c851-419f-99cf-35a2ddba4b31","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"fb59c653-92dd-4d5a-baa7-4c06e1885105","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":230,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"94fd6123-83f6-48ba-8b81-248746a0d377","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"4c43c150-a908-4b12-9baf-6ebe67e21839","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":230,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"27d074d7-df1f-48d2-8dc9-a83f6ad22d1f","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":230,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"f040eab1-4d82-4129-ae7b-8fbd802907ae","block_type":"box","text":"25","page_number":230,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"a6bcedf0-167e-427d-8d71-4bbb59c474c7","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":230,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"67bfd008-24b9-4c7f-b9aa-8faffd6729df","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":230,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"664def13-3d14-452a-8e1f-24dd93cd88a5","block_type":"box","text":"RELATED MATTERS","page_number":230,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"9402067a-4c96-431d-9caa-f5d4f2832fd2","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":230,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"9da46de4-496f-44be-bf1f-c05f5db3c041","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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In such cases, the","page_number":230,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"de602e58-cb1e-432d-a9d7-56dea3d94b84","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":230,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"f35c64ac-a57a-4737-8250-18125f1226c8","block_type":"box","text":"24","page_number":230,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"2dd3a753-3071-428d-98ff-e6ba82172efb","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":230,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"a75a47d4-10b8-447e-afa0-8b31a106470b","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":230,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"b98f34d2-0eab-4d07-b4c5-d6ce6526f631","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":230,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"a3725e60-0a8e-4e9d-a71b-74af5fd853ee","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":230,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"7da21592-d036-4498-8da6-f117a3c8c724","block_type":"box","text":"25","page_number":230,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"206f617f-5e51-4e1b-b462-efaf05d5dd36","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":230,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"9e2134ba-9c47-4a04-a2fa-b66c4374af94","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":230,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"b613f82d-a06f-47e5-9686-6552660a0c57","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a78803fa-7d47-4a32-a1d2-d75285f6b8c4","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"469021a6-1664-4db2-bcfd-6d31d2850f14","block_type":"box","text":"BNM1026U-6032633-19203497","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bab112f8-295b-43c7-919d-46f4d7373e2f","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":231,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"481f0ae7-2bef-4140-bb51-0598fe2070a5","block_type":"box","text":"strategy and risk management.","page_number":231,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"70ff0134-3948-4bde-85df-0db26ea8a8c5","block_type":"box","text":"Auditors and audit-related issues","page_number":231,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"9730b99a-a10b-4314-aca8-eb5463bc64de","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":231,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"7ac5714b-4cff-435a-a0b4-53f697efeeb4","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":231,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"124453dd-d134-4c3e-bb36-202545b57b64","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":231,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"c8a6b638-2e84-493c-ad01-4ebf8d69bd90","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":231,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"de70cdf3-a672-4268-823e-8b2ad4abe3af","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":231,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"d2ebdec6-0ec0-4685-a532-0bf19fe66375","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":231,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"8f1a170d-721c-43e1-8991-679963ce181d","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":231,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"1b7ecf80-6b0c-4218-8741-2f341e7e0be7","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":231,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"ea574584-2e01-4017-8010-523941d651af","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":231,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"b420c97c-2e4b-47bb-b524-1dbc5249346c","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":231,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"03450481-7de2-4344-8cea-5db8af70f5e6","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":231,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"6017d5a9-aa7f-490d-9b62-a82eb90165cd","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":231,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"f324c7f8-ac56-4012-bc49-d25c19b77590","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":231,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"f7368335-801a-4f7e-bbf9-2b8ae6c74dd3","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":231,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"7943ed60-6192-408f-8efd-daeb19f1ccfc","block_type":"box","text":"stakeholders.","page_number":231,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"14af3417-9bc2-49d1-a498-a7656f7c2bf9","block_type":"box","text":"26","page_number":231,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"f406f8fd-0291-41af-9bde-43b13303c4b5","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":231,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"969a1d99-aa68-4568-bf77-55d23b586e11","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":231,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"1f0ba41e-e04a-405e-92f8-1556be93f444","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":232,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"1e5e66ff-a406-4049-bc7f-3b611bf88db5","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":232,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"dde95222-d838-4269-828d-1d558c6103fd","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":232,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"15b8f1ce-8198-47ea-89c6-59057bbb7462","block_type":"box","text":"Decarbonization:","page_number":232,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"de67b2ca-2979-43c3-88c4-3745d8e7f651","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":232,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"7a86f936-f817-4e5d-9b8a-f24515b4e927","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":232,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"b44e01db-e09b-4311-8f3d-43475511859b","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":232,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"6a4ade96-5f68-4f8f-993b-5ee5b9f663f6","block_type":"box","text":"e.g., methane.","page_number":232,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"a0156e93-7781-4e93-8383-d3de2fccacdb","block_type":"box","text":"Climate-related risks and opportunities:","page_number":232,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"a55fb84c-437b-4e53-8d7c-5173a1dcaeaf","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":232,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"f317586a-ceaf-4064-a0f7-2ec58b76a76d","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":232,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"ab2596b3-c0c0-42eb-849f-31d06c9248e0","block_type":"box","text":"to physical climate change.","page_number":232,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"0079ce7b-c1d3-455a-88dc-ae134e18d0ad","block_type":"box","text":"Climate-related transition plan:","page_number":232,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"871e6936-72d0-4e77-90e0-a6861d26c3e9","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":232,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"85a0438f-65d5-4eb4-ba06-98928917cc41","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":232,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"e2e621ce-bf46-4e6d-b85c-7b3180dec7e3","block_type":"box","text":"greenhouse gas emissions.”","page_number":232,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"7b2ebad7-4f84-44bf-bb27-f2b74d4b6182","block_type":"box","text":"27","page_number":232,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"cf01df6b-d046-4c5e-bea4-146a3ba9b922","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":232,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"cff70410-107d-44a0-bf73-913d806004f0","block_type":"box","text":"Targets that “","page_number":232,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"e04cd4b6-1a5c-40b7-a35f-2d8059748cb9","block_type":"box","text":"are in line with what the latest climate science","page_number":232,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"43621efe-b002-4c66-8671-200ef56d2f80","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":232,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"538faed7-d66e-4b4f-a504-5affbd8148c4","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":232,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"94af2e3c-eca4-40c6-9b97-aa62ef30393c","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":232,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"a9d637f9-ce07-4cc0-b956-66f1584f7a10","block_type":"box","text":"with the Paris Agreement goals.”","page_number":232,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"8ce99803-cb22-438d-8f09-337a57823179","block_type":"box","text":"28","page_number":232,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"850bb0af-abcd-44e7-9de8-cc8d5b11ad8d","block_type":"box","text":"Scope 1:","page_number":232,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"b911282e-9896-4adf-a09c-89008d05c79d","block_type":"box","text":"Direct GHG emissions. 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[It] is defined as electricity [steam,","page_number":232,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"139809cb-aa1a-4f46-a227-2601a1fa2752","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":232,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"3d11f391-33c1-4e0b-a3ca-a1eb7a4c05ab","block_type":"box","text":"30","page_number":232,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"671769a9-03b7-469c-b9aa-8d8e25ffb5b5","block_type":"box","text":"Scope 3:","page_number":232,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"9029d34c-54c2-47ce-9dc0-63118d8a21ba","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":232,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"1464528d-5d22-407a-a635-e9a947a1fb39","block_type":"box","text":"of all other indirect emissions. 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